Your policy ends, the coverage stops, and you have four main paths forward
When your term life insurance reaches the end of its term — typically 10, 20, or 30 years — the insurance company stops covering you. No more death benefit. No more monthly premiums. If you die after the term ends and you have no other coverage, your beneficiaries receive nothing from that policy.
Before your term ends, you need to decide what comes next. Some people let the policy lapse because they no longer need coverage. Others convert to permanent insurance, renew for another term, or buy a new policy altogether. The choice depends on your health, your age, how much coverage you still need, and what you can afford.
Key Takeaways
- Term life insurance ends on a specific date, and you are no longer insured after that date unless you take action beforehand.
- Most term policies offer a conversion option that lets you switch to permanent insurance without a medical exam, but only within a set window — usually before age 65 or 70.
- You can renew some term policies for another term at a higher rate, or shop for a new policy, but both require you to pass underwriting again.
- If you do nothing, your coverage simply stops; there is no automatic renewal or payout.
- The best time to decide is 6 to 12 months before your term ends, when you still have options and time to act.
Conversion: switching to permanent insurance without a medical exam
Most term policies include a conversion option that allows you to convert to a permanent policy — usually whole life or universal life insurance — without answering health questions or taking a medical exam. This is valuable if your health has declined since you bought the term policy, because you can lock in coverage even if you would not pass underwriting for a new policy.
Conversion has a deadline. You must convert before a specific age, commonly 65, 70, or 75, depending on your policy. Check your policy documents or call your insurance company to find your conversion deadline and the exact age limit. If you wait until after that date, conversion is no longer an option.
The trade-off is cost. Permanent insurance premiums are much higher than term premiums because the coverage lasts your whole life and builds cash value. Your converted policy will cost significantly more than your original term policy did. Some people convert only a portion of their coverage to keep costs manageable.
Renewal: extending your term for another period
Some term policies can be renewed for another term — another 10, 15, or 20 years — without a medical exam. Renewal is not the same as conversion; you stay in term coverage, not permanent coverage. The new term is shorter than the original (a 20-year term might renew for only 10 years), and the premium jumps significantly because you are older.
Renewal is available only if your policy includes a renewal option, and only until a certain age — often 75 or 80. Check your policy documents to see whether renewal is available and what the deadline is. Not all term policies offer renewal, so do not assume yours does.
Renewal is simpler than shopping for a new policy because you do not need to pass underwriting. But the higher premium can make it expensive. It is worth comparing the renewal rate to the cost of buying a new term policy elsewhere, especially if your health is still good.
Shopping for a new policy: starting fresh with underwriting
You can let your current term policy lapse and buy a new term policy from a different company. This makes sense if your health is still good and you want to lock in a lower rate than your current policy would renew or convert for.
The catch is that you must go through underwriting again. The insurance company will ask health questions, may order a medical exam, and will check your medical records. If your health has changed — if you have developed high blood pressure, diabetes, or cancer, or if you smoke now — your new premium will be higher than it was 20 years ago, even accounting for your age.
Start shopping 3 to 6 months before your term ends. This gives you time to get quotes, compare rates, and complete underwriting before your current coverage lapses. Do not let your old policy expire before your new one is in force; there should be no gap in coverage.
Letting your policy lapse: ending coverage
If you no longer need life insurance — your children are grown, your mortgage is paid off, you have built substantial savings — you can simply let the policy end. Stop paying premiums, and the coverage stops when the term ends. There is no penalty for letting a term policy lapse.
This is the least expensive option because you pay nothing after the term ends. But it means your beneficiaries will not receive a death benefit if you die. Make sure you have other financial protections in place, such as savings or retirement accounts, before you choose this route.
What to do 6 to 12 months before your term ends
Do not wait until the last month. Insurance companies need time to process conversions, renewals, or new applications. If you wait too long and your policy lapses before your new coverage is in force, you will have a gap with no protection.
First, find your policy documents and note the exact end date. Call your insurance company and ask about your conversion deadline, renewal options, and renewal rates. Get those numbers in writing. Then decide: convert, renew, shop for a new policy, or let it lapse.
If you are converting or renewing, submit your request well before the deadline. If you are shopping for a new policy, get quotes from at least three companies and apply to your top choice. Complete any medical exams or paperwork the new company requests. Once your new coverage is approved and in force, you can let your old policy end.
Why your premium jumped or why conversion costs so much
Term life insurance is cheap when you are young because the risk of death is low. As you age, the risk increases, so the premium increases. A 20-year term policy bought at age 35 costs far less than renewing that same policy at age 55, even though it is the same company and the same coverage amount.
Permanent insurance costs even more because it covers you for life and includes a cash value component. When you convert a term policy to permanent insurance, you are not just paying for older age — you are paying for lifetime coverage and a savings feature built into the policy.
This is why some people convert only part of their coverage, or why they shop for a new term policy instead of renewing. A new 20-year term at age 55 might cost less than renewing your existing term for 10 more years, depending on your health and the company.
Frequently Asked Questions
What happens if I do nothing and let my term policy expire?
Your coverage ends on the expiration date. If you die after that date, your beneficiaries receive no death benefit from that policy. You will have no life insurance unless you have other policies in place. There is no automatic renewal or grace period.
Can I convert to permanent insurance if my health is bad?
Yes. Conversion does not require a medical exam or health questions, so your current health does not matter. This is one of the main reasons to convert: if you have developed a serious illness or condition since you bought the term policy, conversion lets you keep coverage without being denied. You must convert before your policy's conversion deadline, usually before age 65 or 70.
Is it cheaper to renew my term or buy a new policy?
It depends on your health and your age. If your health is still good, a new policy from a different company might be cheaper than renewing your existing policy. If your health has declined, renewal (which does not require underwriting) might be your only affordable option. Get quotes for both before you decide.
What if I miss the conversion or renewal deadline?
Once the deadline passes, you cannot convert or renew that policy. Your only option is to shop for a new policy, which requires you to pass underwriting. If your health has declined, you may face higher premiums or denial. This is why it is important to act before the deadline.
Do I need to keep life insurance after my term ends?
That depends on your situation. If you have dependents who rely on your income, a mortgage, or debts, you likely still need coverage. If your children are independent, your mortgage is paid off, and you have substantial savings, you may not need it. Review your financial obligations and your family's needs before you decide to let coverage lapse.