Your coverage ends on the expiration date, and you stop paying premiums
When your term life insurance policy reaches the end of its term — whether that's 10, 20, or 30 years — the insurance company stops covering you. No more premiums are due after that date. If you die after the policy expires, your beneficiaries receive nothing from that policy, even if you were covered the day before expiration.
The exact expiration date is printed in your policy documents and on your annual statements. Most insurers send a notice 30 to 60 days before expiration to remind you what's coming. If you have not decided what to do by then, you need to act quickly — your options narrow once the policy lapses.
Key Takeaways
- Term life insurance ends on a specific date, and coverage stops when ready; you are no longer insured after that day.
- You can renew the policy, convert it to permanent insurance, or let it expire and shop for a new policy elsewhere.
- Renewal and conversion happen without a medical exam, but both cost more than your original premium.
- If you let the policy lapse and want coverage later, you will need to pass a new medical exam and may pay higher rates based on your current age and health.
- Some policies include a conversion window of 30 to 60 days after expiration; after that window closes, conversion is no longer an option.
Renewing your policy at the end of the term
Many term policies include a renewal option, which lets you extend coverage for another term without taking a medical exam. You straightforward notify the insurance company before the expiration date, and your coverage continues. The new term is usually the same length as the original — another 10, 20, or 30 years.
The catch is cost. Your new premium will be much higher than what you paid during the original term, because renewal rates are based on your age at renewal, not your age when you first bought the policy. A 45-year-old renewing a 20-year term policy will pay rates for a 45-year-old, not a 25-year-old. Depending on the policy and the insurer, your premium can double or triple.
Renewal is useful if your health has declined since you bought the original policy and you would not pass a new medical exam. It is also useful if you still need coverage but do not want to shop around. However, you should compare renewal rates to quotes from other insurers before you decide — sometimes buying a new policy elsewhere is cheaper than renewing, even with the medical exam.
Converting to permanent life insurance
A conversion option lets you change your term policy into a permanent policy — usually whole life or universal life insurance — without a medical exam. You do not have to prove you are still healthy. The insurance company must allow the conversion if you request it within the conversion window, which is typically 30 to 60 days after your term expires, though some policies allow conversion anytime during the term.
Permanent insurance lasts your entire life as long as you pay premiums, and it builds cash value that you can borrow against or withdraw. The trade-off is that permanent insurance premiums are significantly higher than term premiums. A permanent policy that starts at age 45 will cost far more per month than a term policy at the same age.
Conversion makes sense if you realize you need lifetime coverage and your health is no longer insurable at standard rates. It also makes sense if you want to lock in the ability to have permanent insurance without a medical exam. However, if you are still in good health and only need coverage for a specific period, buying a new term policy is usually cheaper.
Letting your policy lapse and buying new coverage
You can straightforward let your term policy expire without renewing or converting. If you still need life insurance, you can shop for a new policy from any insurer. This route works well if you are still in good health, because you will get standard rates based on your current age and health status.
The risk is the gap in coverage between when your old policy expires and when your new policy begins. If you die during that gap, your beneficiaries have no death benefit. To avoid this, you should have a new policy in place before your old one expires. Start the process process at least 60 days before expiration so there is time for underwriting and approval.
If your health has declined since you bought your original policy, a new policy will cost more than renewal or conversion would have. You may also face medical exam requirements, waiting periods, or exclusions for certain conditions. This is why it is important to decide what you want to do well before your policy expires — waiting until after expiration closes off your options.
What happens if you miss the renewal or conversion important date
If you do not renew or convert before your policy expires, you lose the right to renew or convert without a new medical exam. Some policies allow a short grace period — usually 30 to 60 days — during which you can still convert, but this varies by insurer and policy. Once that window closes, conversion is gone for good.
At that point, your only option is to explore for a new policy from scratch, which means a full medical exam, underwriting, and approval. If your health has changed, your new rates will reflect that. If you have developed a serious health condition, you may be denied coverage altogether or offered a policy with exclusions or riders that limit what is covered.
Check your policy documents now to find out what your renewal and conversion important date are. Mark them on your calendar. If you are within 90 days of expiration and have not decided what to do, contact your insurance agent or the insurance company directly to understand your options and their costs.
Understanding the cost difference between your options
Your original term premium was based on your age and health when you first applied. Once that term ends, any continuation of coverage — whether renewal, conversion, or a new policy — will be priced differently.
| Option | Medical Exam Required | Cost Compared to Original | Best For |
|---|---|---|---|
| Renew the same term policy | No | Much higher (age-based) | Declining health; need certainty of approval |
| Convert to permanent insurance | No | Much higher (permanent rates) | Need lifetime coverage; health is uninsurable |
| Buy a new term policy | Yes | Depends on health and age | Still in good health; want lowest cost |
Request a renewal quote and a conversion quote from your current insurer. Then get quotes from at least two other insurers for a new term policy. Compare the total cost over the next 10 or 20 years, not just the monthly premium. A slightly higher monthly premium on a new policy might be cheaper overall if you are in good health.
Frequently Asked Questions
Can I renew my term policy after it expires if I missed the important date?
No. Once your term expires, the renewal option is gone. You can only explore for a new policy, which requires a medical exam. Some policies allow conversion for 30 to 60 days after expiration, but renewal rights end on the expiration date. Contact your insurer when ready if you are past the expiration date but within the conversion window.
What if I cannot afford the renewal premium?
Compare renewal rates to new policy quotes from other insurers — sometimes a new policy is cheaper. You can also reduce the death benefit to lower the premium. If you cannot afford any coverage, let the policy lapse, but understand that you will have no life insurance and will need a medical exam to get coverage again later.
Do I have to convert to the same type of permanent insurance?
No. Your policy documents specify which permanent products are available for conversion — usually whole life, universal life, or variable universal life. You choose which one you want. Ask your insurer which options your specific policy allows before you decide.
If I buy a new policy after my term expires, will I have a waiting period?
Most new policies have no waiting period — coverage begins once the policy is approved and the first premium is paid. However, some policies include a contestability period of one to two years, during which the insurer can investigate claims. This is standard and applies to all new policies, not just those bought after a previous policy expired.
What if my health is worse now than when I bought my original policy?
Renewal and conversion do not require a medical exam, so your current health does not affect approval. However, both cost significantly more than your original premium. If you want a new policy instead, you will need a medical exam, and your rates will be higher based on your current health status. Renewal or conversion may be your only affordable option if your health has declined substantially.