Your coverage ends on the expiration date, and you stop paying premiums

When your term life insurance policy reaches its end date, the insurance company stops covering you. If you die after that date, your beneficiaries receive nothing from that policy — there is no payout, no matter the circumstances. You also stop making monthly or annual premium payments once the term ends.

The exact expiration date is printed in your policy documents and was set when you bought the coverage. Most term policies run for 10, 20, or 30 years, though some are shorter or longer. Your insurer will typically send you a notice 30 to 60 days before expiration to remind you the coverage is ending.

Key Takeaways

  • Your death benefit disappears on the expiration date, and the insurance company has no obligation to pay your beneficiaries after that point.
  • You can renew your policy, convert it to permanent insurance, or buy a new policy before expiration, but each option has different costs and health requirements.
  • If you wait until after expiration to buy new coverage, you will likely pay higher premiums because you are older and insurers will require a new medical exam.
  • Some policies include a conversion option that lets you switch to whole life or universal life insurance without a medical exam, though the premium will be significantly higher.
  • Letting a policy lapse without replacement leaves your family with no death benefit protection, so planning ahead matters.

Renewal and conversion options before expiration

Most term policies give you the choice to renew or convert before the expiration date arrives. Renewal means extending the same term coverage for another period — typically another 10, 20, or 30 years. The new premium will be higher because you are older, but you usually do not need a medical exam to renew.

Conversion means switching your term policy to permanent insurance, such as whole life or universal life. Conversion is valuable because you can do it without proving you are still healthy — the insurance company cannot deny you or charge you more based on health changes since you bought the original policy. However, the premium jumps significantly. A whole life policy on the same death benefit will cost roughly three to five times what your term premium was, depending on your age and the insurer.

The window to renew or convert is limited. Most insurers allow you to renew or convert up to 30 days before expiration, though some allow up to 60 days. After that window closes, you lose both options and must buy a new policy from scratch if you want coverage.

Buying a new policy after expiration

If your term policy expires and you did not renew or convert, you can still buy new life insurance. However, the process and cost are different from renewing. You will need to complete a full application, answer health questions, and likely undergo a medical exam — blood work, height and weight measurements, and possibly an EKG depending on your age and the death benefit amount you request.

Your premiums will reflect your current age, not the age you were when your original policy started. A 55-year-old buying a new 20-year term policy pays significantly more than a 35-year-old buying the same coverage. If your health has changed since your original policy — you developed diabetes, had a heart attack, or started taking medications for high blood pressure — the new premiums will be even higher, or the insurer may deny you altogether.

The underwriting process typically takes two to four weeks. During that time, you have no death benefit protection if you do not have another policy in place.

What happens if you do nothing

If your term policy expires and you do not renew, convert, or buy new coverage, you simply have no life insurance. Your family receives no death benefit if you die. This is the outcome for many people who let policies lapse — they assume they will handle it later, then forget, or they decide the cost is too high and drop coverage without a backup plan.

This gap in coverage is particularly risky if you have dependents, a mortgage, or outstanding debts. Your family would need to cover funeral costs, any remaining loan balances, and lost income on their own. If you have young children, there is no money set aside for their education or care.

Planning ahead to avoid a coverage gap

The best time to decide what happens when your term policy expires is before expiration arrives. Review your policy documents now to find your expiration date. Then ask yourself: Will I still need life insurance at that time? If yes, do you want to renew the same coverage, convert to permanent insurance, or buy a new policy?

If you are unsure whether you will still need coverage, consider your situation in 10, 20, or 30 years — whenever your term ends. Will you have paid off your mortgage? Will your children be independent? Will you have built enough savings that your family would not struggle financially if you died? These questions help you decide whether to plan for renewal now or let the policy expire as planned.

If you know you will want coverage, contact your insurer 60 to 90 days before expiration. Ask about renewal rates and conversion options. Get quotes in writing so you can compare costs. If conversion is too expensive, you might shop for a new term policy from a different insurer before your current policy expires — that way you can lock in rates while you are still insurable under your current policy, and you avoid any gap in coverage.

The cost difference between renewing, converting, and buying new

The three paths forward have very different price tags. Renewing your existing term policy is usually the cheapest option because you avoid a medical exam and the insurer already knows your health history. A 20-year renewal at age 55 might cost two to three times what you paid at age 35, but it is still a term rate.

Converting to whole life is more expensive — often 10 to 15 times the original term premium — but you get lifetime coverage and a cash value component that grows over time. You pay this higher premium for the rest of your life, but you never need another medical exam and the death benefit is may provide.

Buying a new term policy after expiration falls between the two. You pay more than renewal because you are older and need a medical exam, but less than conversion because it is still term coverage, not permanent insurance. If your health has declined, a new policy might be significantly more expensive or unavailable at any price.

Frequently Asked Questions

Can I renew my term policy after the expiration date has passed?

No. Once the renewal window closes — usually 30 to 60 days before expiration — you cannot renew that specific policy. You would need to buy a new policy from scratch, which requires a full medical exam and will cost more because you are older.

What if I have a health condition when my term policy expires?

If you renew or convert before expiration, your health condition does not affect your ability to keep coverage or the rate you pay. If you wait until after expiration to buy new insurance, the condition will likely increase your premium or result in denial. This is why planning ahead matters.

Does my family get any money if I die after my policy expires?

No. Once the policy expires, the death benefit is gone. Your family receives nothing from that policy, regardless of when you die or the circumstances. Only active policies pay out.

Is it cheaper to convert to whole life or buy a new term policy?

Buying a new term policy is cheaper than converting, but both cost more than renewing your existing term. Conversion has no medical exam requirement, while a new policy does. The choice depends on whether you want lifetime coverage or just another term period.

What happens to my premiums when my term policy renews?

Your premium increases because you are older. The exact increase depends on your age, the death benefit amount, and the insurer's rates. A renewal quote should arrive 60 days before expiration so you can decide whether to accept the new rate or shop elsewhere.