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Term Life · Renewal

What Happens When Your Term Life Policy Expires

When a term life policy reaches the end of its term, coverage simply ends unless you act. Most policies offer an annual renewal option at a sharply higher rate, priced for your current age with no new health questions, or a conversion option to permanent coverage. Neither is automatic in every policy, so it pays to know your options before the term runs out.

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Your Options at the End of the Term

Three Paths, in Order of What Most People Choose

Let it lapse, apply new

If you're still healthy, a brand-new term policy at your current age is usually far cheaper than renewing the expiring one at its post-term rate.

Convert to permanent

If your policy includes a conversion rider and your health has changed, converting locks in coverage for life without new medical underwriting, at a permanent-insurance price.

Accept the annual renewal

Most term policies allow year-to-year renewal with no health questions, but the rate jumps significantly and climbs every year. Usually a short-term bridge, not a long-term plan.

Plan Ahead

The Best Time to Decide Is Before the Term Ends

Carriers typically send renewal notices a few months before the term expires, but by then your health may have changed since you first applied. Reviewing your options a year or two before the term ends gives you time to apply for new coverage while you're still insurable at a better rate, rather than defaulting into the expensive annual renewal because the clock ran out.

Common Questions

Frequently Asked Questions

Does my term policy automatically renew?

It depends on the policy. Many include a guaranteed renewable provision allowing year-to-year renewal with no new health questions, but at a steep rate increase. Some policies simply end. Check your policy's specific terms, or ask Guy to pull them for you.

Is converting to permanent coverage expensive?

It costs more than the term premium you were paying, since you're moving to permanent insurance, but it locks in coverage for life without new medical underwriting, which matters if your health has changed since you first applied.

Can I just apply for a new term policy instead of renewing?

Yes, and if you're still healthy it's usually the cheaper path. A new application means new underwriting at your current age, which beats the old policy's post-term renewal rate in most cases.

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Guy Jean compares real offers across carriers and explains what fits before you decide anything. No pressure, no obligation.

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