Term life insurance is designed to last for a set period, commonly 10, 20, or 30 years. If you outlive your term policy, coverage typically ends and no death benefit is paid. The good news is that you often have options before and after the policy expires, depending on the policy and insurer.
What Happens When a Term Life Policy Expires?
Most term life insurance policies expire at the end of the term. If you’re still alive and your premiums are current, the policy ends and coverage stops. Because term life insurance does not build cash value, there is typically no money returned when the term ends.
Once the policy expires, your beneficiaries are no longer covered under that plan, and the death benefit is no longer in force. If you still need protection, you’ll need to renew, convert, or purchase a new policy. Understanding what happens when term life ends helps you plan ahead and avoid an unexpected gap in coverage.
Do You Get Your Money Back?
In most cases, no — standard term life insurance does not return your premiums if you outlive the policy. Premiums are paid in exchange for protection during the term, similar to how auto or homeowners insurance works. The main exception is return of premium (ROP) term life insurance, which can refund premiums if you outlive the term — but it typically comes with higher upfront costs.
Your Options If You Outlive a Term Policy
If your term life insurance is nearing the end of its term, you typically have several options depending on your needs, age, and health. Understanding your options when term life expires can help you avoid gaps in coverage and choose the most cost-effective path forward.
Common options include:
-
Renew the policy, often at a higher rate based on your current age
-
Convert to permanent life insurance, if your policy includes a conversion option
-
Buy a new term policy, if you still qualify and want affordable coverage
-
Switch to a final expense or whole life policy, which is common for older adults
-
Let the policy expire, if you no longer need coverage
The best choice depends on your goals, budget, and health — and planning early gives you the most flexibility.
Protect Against the Unexpected
Renewing Term Life Insurance: What to Know
Many term life insurance policies allow renewal after the initial term ends, but renewal premiums are typically much higher because rates are based on your age at the time of renewal. In most cases, renewing term life insurance is intended as a short-term extension rather than a long-term coverage solution.
Renewal can be helpful if you need coverage temporarily — such as while comparing other options or waiting for a new policy to begin. However, for many people, it’s often more cost-effective to explore new coverage or conversion options before the term ends rather than relying on renewal pricing.
Converting Term to Permanent Life Insurance
Many term life insurance policies include a term life conversion option that allows you to convert term to permanent coverage (such as whole life or universal life) without taking a new medical exam. This can be especially valuable if your health has changed since you originally purchased your term policy.
Key things to know about term life conversion:
-
Conversion usually allows you to move into a permanent policy without requalifying medically
-
Most policies include a conversion deadline (often within the first 10–15 years or before a certain age)
-
Permanent life insurance typically costs more than term, since it lasts longer and may include cash value
-
Some policies allow you to convert part of your coverage, which can help manage costs
-
Reviewing conversion rules early helps preserve your options and avoid missing important deadlines
Buying a New Policy Before Your Current One Ends
If you still need coverage and you’re healthy enough to qualify, choosing to buy a new term policy before your current one expires is often the most affordable option. Replacing coverage early can help you lock in a new rate, avoid expensive renewal pricing, and prevent any gap in protection.
Many people decide to replace term life insurance when life circumstances change — such as adjusting for a mortgage timeline, children becoming financially independent, or shifting long-term goals. Comparing options well before your term ends gives you the most flexibility and makes it easier to choose the right coverage for your current needs.
When Letting Term Life Expire May Be Okay
Letting your term life insurance expire may be reasonable if your financial responsibilities have decreased and your loved ones no longer rely on your income. This is common after a mortgage is paid off, children are financially independent, and retirement savings are sufficient to cover final expenses. If you’re asking, “Do I still need life insurance?” the key is confirming that your family would not face financial hardship — and that major debts and end-of-life costs could be handled without coverage.
Best Next Steps (Simple Checklist)
If your term life policy is nearing the end of its term, taking action early can help you avoid coverage gaps and make the most cost-effective decision.
Here are the best next steps:
-
Check your policy expiration date and review renewal terms
-
Confirm whether your policy is convertible and note any conversion deadline
-
Reassess how much coverage you still need based on your current finances and responsibilities
-
Compare options (renewal vs new term vs conversion to permanent coverage)
-
Start shopping 6–12 months before expiration whenever possible to lock in better rates
If you’re nearing the end of your term policy and want help choosing the right next step, you can get a quote online or call us at (800) 442-9899 to speak with a licensed advisor. We’ll help you compare options and avoid coverage gaps — without pressure.
Outliving a Term Life Policy: FAQs
What happens if I outlive my term life insurance policy?
If you outlive your term life policy, the coverage expires and the insurer does not pay a death benefit. Most term life policies are designed to protect you during a specific period (such as while raising children or paying a mortgage).
Do I get my money back if I outlive a term life policy?
Typically, no. Standard term life insurance does not refund premiums if you outlive the term. However, Return of Premium (ROP) term life insurance refunds premiums at the end of the term if you’re still living.
Can I renew my term life insurance after it expires?
Many term policies are renewable, often on an annual basis. However, renewals are usually much more expensive because premiums increase with age. Renewal rates are based on age at renewal, not the original purchase age.
Do I need a medical exam to renew term life insurance?
Most renewable term policies do not require a medical exam, but the premium increase can be significant. If you want lower rates, applying for a new policy may require underwriting.
Can I buy a new term life policy after the original term ends?
Yes, as long as you still qualify medically and financially. Many people purchase a new term policy if they:
-
Still have dependents
-
Still owe mortgage debt
-
Want continued income replacement
New policies may offer lower premiums than renewal in some cases.
What is term life conversion and how does it help?
Term conversion allows you to convert your term policy to a permanent policy (whole life or universal life) without a medical exam, typically before the term expires. This can be valuable if your health has changed.
What are my best options if my term policy is ending soon?
Common options include:
-
Renewing your existing policy
-
Converting to permanent coverage
-
Buying a new term policy
-
Reducing coverage amount to lower cost
-
Switching to final expense insurance (especially for seniors)
An agent can help compare the best approach.
Why do people outlive their term life policy?
Because term life insurance is designed for temporary coverage. Many policyholders outlive the term because:
-
They bought it young
-
They stayed healthy
-
Their term matched major financial obligations (mortgage, childcare years)
Outliving the policy is a positive outcome — it means the coverage wasn’t needed.
How do I know if I still need life insurance after my term ends?
You may still need coverage if you:
-
Still have dependents
-
Still have debt or a mortgage
-
Want to cover final expenses
-
Want to leave an inheritance
-
Want to protect a spouse’s retirement plans
If obligations have decreased, you may need less coverage or none at all.
Can I extend my term life insurance without renewing?
Some insurers offer term extensions or allow you to convert to permanent coverage instead of renewing. Extensions are not always available, and rates vary by policy.
What happens if I stop paying premiums near the end of my term?
If you stop paying, your policy will lapse after the grace period and you’ll lose coverage. Even near the end, it’s important to keep premiums current if you still need protection.
Is it cheaper to renew a term policy or buy a new one?
It depends on your age and health. Renewal is easier (often no exam), but expensive. Buying a new policy may be cheaper if you’re still healthy enough to qualify for a favorable rate class.
What if I’m older and can’t qualify for a new term policy?
If health or age makes new term coverage difficult, alternatives include:
These options can still provide protection.
Can I switch from term life to a smaller permanent policy?
Yes. Many people convert part of their term coverage to a smaller permanent policy for lifelong protection while allowing remaining term coverage to expire.
Is term life insurance still worth it if you outlive it?
Yes. Term life insurance is one of the most cost-effective ways to protect your family during your highest financial-risk years. Outliving it means you successfully protected your family during the period you needed it.
