Your policy ends, and you stop paying premiums
When your term life insurance reaches the end of its term — whether that's 10, 20, or 30 years — the coverage simply stops. You no longer pay premiums, and the insurance company no longer owes a death benefit if you pass away. The policy expires on the date written in your contract, and that's the end of it unless you take action beforehand.
The timing matters because you need to decide what to do before that expiration date arrives. You can't renew coverage retroactively, and you can't go back and add protection after the policy has lapsed. Insurance companies won't cover a death that happens after the term ends, even if you die the day after expiration.
Key Takeaways
- When your term ends, your death benefit stops — the insurance company pays nothing if you die after that date, regardless of when you purchased the policy.
- You can renew your term policy before it expires, usually without a medical exam, but the new premium will be much higher because you're older.
- You can convert to permanent life insurance (whole life or universal life) without a medical exam, locking in your health status at the time of conversion.
- If you do nothing by the expiration date, you lose coverage entirely and will need to apply for new insurance, which means a medical exam and potentially higher rates based on your current health.
- Some policies include a grace period of 30 to 60 days after expiration during which you can still renew or convert, but you should not rely on this.
Renewing your term policy at the end
Most term policies include a renewal option that lets you extend coverage for another term without taking a medical exam. This is valuable because it means the insurance company cannot deny you based on health changes that happened during the first term. If you developed diabetes, had a heart condition, or gained weight, the renewal is still available to you.
The catch is cost. Your new premium will be much higher because you're older. A 35-year-old paying $30 per month for a 20-year term will pay significantly more to renew at age 55. The exact increase depends on your age at renewal and the length of the new term you choose. Some people renew for a shorter term (10 years instead of 20) to keep costs lower, accepting that they'll face another decision sooner.
You must request renewal before your policy expires. Check your policy documents for the renewal deadline — it's usually 30 to 60 days before expiration. Missing that window means you lose the right to renew without a medical exam, and you'll have to apply for new coverage from scratch.
Converting to permanent life insurance
A conversion option lets you switch from term coverage to permanent insurance (whole life or universal life) without a medical exam. Like renewal, this protects you if your health has declined. The insurance company evaluates you based on your health at the time you purchased the original term policy, not your current health.
Permanent insurance costs more per month than term, but it lasts your entire life as long as you keep paying premiums. You build cash value over time that you can borrow against or withdraw. Conversion makes sense if you still need life insurance at the end of your term but can't afford the higher premiums of a new term policy, or if your health has changed enough that a new application would be expensive or denied.
Conversion deadlines vary by policy. Some allow conversion anytime during the term, while others only allow it in the final year or final few years before expiration. Read your policy or call your insurance company to confirm your conversion window. If you wait until after expiration, you lose this option and will need to apply for new insurance with a medical exam.
Applying for new coverage after expiration
If you let your policy expire without renewing or converting, you can still buy new term or permanent insurance — but you'll go through the full application process. This means a medical exam, health questionnaire, and underwriting review. The insurance company will assess your current health, not your health when the old policy started.
If your health has worsened, your new premiums will reflect that. You might be rated higher, meaning you pay more than someone your age in good health. You might also be declined for coverage in certain amounts or for certain conditions. A person who had a heart attack after their term policy expired might be approved for $250,000 in coverage but not $500,000, or might pay 50% more than standard rates.
The longer you wait after expiration, the older you are when you apply, and the more time has passed for health changes to occur. Applying immediately after expiration is better than waiting a year or more.
What happens if you do nothing
If you don't renew, convert, or apply for new coverage before your term ends, you simply have no life insurance. Your beneficiaries receive nothing if you die. This is the most common outcome for term policies — many people buy them to cover a specific period (while children are young, while a mortgage is being paid) and let them expire when that need ends.
The risk is that your need for coverage may not have ended, or you may not realize you still need it. A 55-year-old who bought a 20-year term at age 35 might have assumed they'd be financially independent by now, but if they still have debt, dependents, or a spouse who relies on their income, they need coverage. At that point, applying for new insurance is expensive because of age and any health changes.
Some policies include a grace period of 30 to 60 days after expiration during which you can still renew or convert without losing your rights. Check your policy documents to see if yours has one, but do not count on it — treat the expiration date as final and act before it arrives.
Planning ahead for your term's end
The time to think about what happens at expiration is years before it actually occurs, not the month it's due. Review your policy documents now to understand your renewal and conversion deadlines. Mark your calendar for 90 days before expiration so you have time to decide and contact your insurance company.
Ask yourself: Will I still need life insurance when this term ends? If yes, which option makes the most sense — renewing for another term, converting to permanent insurance, or applying for new coverage? If no, make sure your financial situation has genuinely changed enough that you can afford to lose this protection.
If you're unsure whether you still need coverage, talk to a financial advisor or your insurance agent. They can help you think through your situation without pressure to buy something you don't need. The cost of that conversation is far less than the cost of discovering too late that you needed coverage and can no longer afford it.
Frequently Asked Questions
Can I renew my term policy after it expires?
No, not without a medical exam. Once your policy expires, you lose the automatic renewal right. You can apply for new coverage, but the insurance company will require a full health evaluation. Renewal must happen before the expiration date.
Will my new premium be based on my current age or my age when I first bought the policy?
Your new premium is based on your current age. If you renew at 55, you pay rates for a 55-year-old, not a 35-year-old. This is why renewal premiums are significantly higher than the original term premiums.
What if my health got worse during the term — can I still renew?
Yes. Renewal does not require a medical exam, so health changes during the term do not affect your ability to renew. The insurance company evaluates you based on your health when you originally purchased the policy.
Is conversion the same as renewing?
No. Renewal extends your term coverage for another set period at a higher premium. Conversion switches you to permanent insurance (whole life or universal life) that lasts your entire life. Conversion also costs more but builds cash value.
What happens to my premiums if I convert to whole life insurance?
Your monthly premium will be higher than your term premium, sometimes significantly higher, because whole life lasts your entire life and builds cash value. The exact amount depends on your age at conversion and the death benefit amount you choose.