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.
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.
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.
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.
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.
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.
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.
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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