Your coverage ends on the date your term expires, and you stop paying premiums
When your term life insurance policy reaches its end date, the insurance company stops covering you. You no longer owe premiums, and the policy has no cash value to collect. If you die after the term ends, your beneficiaries receive nothing from that policy — there is no payout.
The exact end date is written in your policy documents. Most term policies last 10, 20, or 30 years from the date you bought them. Some policies end at a specific age, usually 65, 70, or 80. You should know your end date before the term gets close, because you will need to decide what to do several months in advance.
The insurance company will send you a notice before your policy expires, typically 30 to 60 days ahead. This notice tells you the exact expiration date and explains your options. Read it carefully — do not assume you know what happens next.
Key Takeaways
- When your term ends, your coverage stops when ready and you owe no more premiums, but you also have no death benefit protection from that policy.
- Most insurers send a notice 30 to 60 days before expiration that explains your options, including renewal, conversion, or letting the policy lapse.
- You can renew your term policy at a higher premium rate, convert it to permanent insurance, or shop for a new policy with a different company.
- If you let the policy expire without renewing or converting, you will need to pass medical underwriting again if you want coverage later.
- The longer you wait after expiration to buy new coverage, the older you are and the higher your premiums will be.
Renewing your term policy at the end of the term
Many term policies include a renewal option, which means you can extend your coverage for another term without answering health questions again. This is called may provide renewal. You straightforward pay the new premium rate and your coverage continues.
The catch is that your premium will increase significantly. You are now older, and the insurance company is taking on more risk. A 20-year term policy that cost $30 per month at age 40 might cost $80 or $100 per month when you renew at age 60. The exact increase depends on your age, health history, and the insurance company's pricing.
Renewal is automatic in some policies — you have to actively decline it or your coverage rolls forward. In others, you must request renewal. Check your policy documents or call your insurance agent to understand how your policy works. If you want to renew, do it before the expiration date. After the policy expires, you may lose the right to renew without new medical underwriting.
Renewal makes sense if you still need life insurance and your health has changed in ways that would make new coverage expensive or hard to get. It also makes sense if you want to keep the same company and avoid the hassle of shopping. Renewal does not make sense if you no longer need coverage or if you can find cheaper rates elsewhere.
Converting to permanent insurance instead of renewing
If your policy includes a conversion option, you can change it to a permanent policy — usually whole life or universal life insurance — without medical underwriting. This means you do not have to answer health questions or take a medical exam. The insurance company must approve the conversion based only on the information in your original process.
Conversion is valuable if your health has declined since you bought the term policy. You get permanent coverage without proving you are still insurable. The trade-off is cost: permanent policies have much higher premiums than term policies. A whole life policy that replaces your term coverage will cost several times more per month.
You must convert before your term expires. Most policies give you a window of 30 to 60 days after expiration to convert, but some do not. After that window closes, the conversion right is gone. If you think you might want to convert, contact your insurance company at least 90 days before expiration to understand the exact process and the new premium.
Conversion makes sense if you want lifelong coverage and your health makes new underwriting risky or expensive. It does not make sense if you no longer need life insurance or if you want to shop for better rates on a new policy.
Shopping for a new policy with a different company
You can let your term policy expire and buy a new policy from a different insurance company. This makes sense if you no longer need as much coverage, if you want to lower your premium, or if you want different features.
The downside is that you will have to go through medical underwriting again. The insurance company will ask health questions, may require a medical exam, and will check your medical records. Your new premium will be based on your current age and current health. If your health has worsened since you bought your original term policy, your new premium will be higher.
Start shopping at least 90 days before your term expires. This gives you time to compare quotes, choose a company, and complete underwriting before your current coverage ends. Do not let your old policy expire before you have new coverage in place. If you die during the gap between policies, your beneficiaries get nothing.
Shopping for a new policy makes sense if you are still in good health, if you want to reduce your coverage amount, or if you want to switch to a company with better rates or features. It does not make sense if your health has declined significantly or if you cannot afford the time and effort of underwriting.
Letting your policy lapse and buying coverage later
You can straightforward let your term policy expire without renewing, converting, or buying a new one. Your coverage ends, you owe no more premiums, and you have no death benefit. This is the right choice if you no longer need life insurance.
If you decide later that you want coverage again, you will have to explore for a new policy. You will be older, and your health may have changed. Your new premium will reflect both your current age and your current health status. If you have developed health problems — high blood pressure, diabetes, heart disease, or cancer — your new premium could be much higher or you might be denied coverage altogether.
The longer you wait after your term expires, the more expensive new coverage becomes. A policy you could have renewed at age 60 for $80 per month might cost $200 per month if you wait until age 65 to buy new coverage. Waiting also means you are uninsured during that time, which puts your family at financial risk if you die.
Letting your policy lapse makes sense only if you are certain you will never need life insurance again. For most people, it is safer to renew, convert, or buy new coverage before the term ends.
What to do in the months before your term ends
Start planning at least 90 days before your policy expires. Pull out your policy documents and find the exact expiration date. Look for information about renewal, conversion, and your options.
Call your insurance agent or the insurance company's customer service line. Ask three questions: Can I renew this policy? Can I convert it to permanent insurance? What will the new premium be for each option? Write down the answers and ask for them in writing if possible.
If you think you might shop for a new policy, get quotes from at least three companies. Compare the premium, the coverage amount, and the underwriting process. If you are in good health, shopping often saves money. If your health has changed, renewal or conversion may be your only realistic option.
Make your decision and notify your insurance company in writing before the expiration date. If you are renewing or converting, follow the company's instructions exactly. If you are buying a new policy, make sure it is in force before your old policy expires. Do not let there be a gap in coverage.
What happens to your beneficiaries if you die after the term ends
If you die after your term policy has expired and you did not renew, convert, or buy new coverage, your beneficiaries receive nothing from that policy. The death benefit does not exist anymore. Your family will have to cover funeral costs, outstanding debts, and lost income on their own.
This is why planning ahead matters. If you still need life insurance when your term is ending, you must take action before the expiration date. Waiting until after the policy expires leaves your family unprotected.
If you did renew or convert your policy before it expired, your beneficiaries are still covered. They will receive the death benefit if you die, even years later. The coverage continues as long as you pay the premiums.
Frequently Asked Questions
Can I renew my term policy after it has already expired?
Most policies allow renewal only if you request it before the expiration date. Once the policy expires, the renewal right is usually gone. A few companies allow a short grace period — typically 30 to 60 days — to renew after expiration, but you should not count on this. Contact your insurance company when ready if your policy has already expired and you want to renew.
What if I cannot afford the new premium when my term expires?
If renewal or conversion is too expensive, you have three options: shop for a new policy with a lower coverage amount, let the policy expire and buy new coverage later when you can afford it, or explore whether you still need life insurance at all. Talk to your insurance agent about your budget before the policy expires.
Do I have to take a medical exam to convert my policy?
No. Conversion is one of the main reasons people choose it — you do not have to answer health questions or take a medical exam. The insurance company approves the conversion based only on your original process. However, you must convert before your term expires, and you must follow the company's conversion process exactly.
Will my new premium be based on my current age or my original age?
Your new premium will be based on your current age at the time of renewal, conversion, or new purchase. If you renew at age 60, you pay the rate for a 60-year-old. If you convert at age 65, you pay the rate for a 65-year-old. Your original age no longer matters once the term ends.
What if I do not receive a notice before my policy expires?
Insurance companies are required to send expiration notices, but mail can be lost or delayed. Do not wait for a notice. Check your policy documents 120 days before expiration to find your end date. Call your insurance company directly to confirm the date and discuss your options. Do not assume anything — verify it yourself.