Life Insurance

What if your term policy ends and you’re still alive? Here’s what to do next and how to avoid gaps in coverage.

For many, life insurance is a vital part of a long-term financial plan. But what happens if you outlive your term life insurance policy? First, take a deep breath—this doesn’t mean you’re unprotected forever. Whether you’re approaching the end of your term or simply planning ahead, understanding your options now can help you avoid a lapse in coverage later.

In this guide, we’ll break down what happens when a policy expires, how you can convert it to permanent coverage, and whether a permanent policy might be a better long-term solution.

What Happens When a Term Life Policy Expires?

Term life insurance offers affordable coverage for a fixed period, typically 10, 20, or 30 years. It’s designed to protect your loved ones during your highest earning (and highest liability) years. But once the term ends, the policy typically expires with no payout if the insured is still alive.

So what now?

Your Options at Expiration:

1. Let It Expire – The policy ends, and no further premiums are due. You simply no longer have coverage.

2. Renew Annually – Some insurers offer annual renewable term options, but premiums often skyrocket as you age.

3. Convert to Permanent Coverage – Many term policies include a conversion rider, allowing you to switch to a permanent policy without new medical underwriting. Learn more about life insurance that doesn’t expire.

Life Insurance Conversion: How It Works

Life insurance conversion is one of the most valuable features in a term policy. Here’s why:

You can lock in permanent coverage before your term ends.

You won’t need to go through a new medical exam.

It allows for long-term financial planning, estate protection, or legacy building.

When Should You Convert?

Every policy is different, but most insurers allow you to convert any time before the end of the term—sometimes only within the first 10 or 15 years. If your health has changed or you’re concerned about qualifying for new coverage, conversion can be a smart move.

The key is not to wait until the last minute. Start exploring your conversion window at least a year before your term ends.

Term vs. Permanent Insurance: Which Is Right For You?

Understanding term vs permanent insurance can help you make the best decision as your policy matures.

If you value lifelong protection and want your policy to double as a wealth-building or legacy tool, a permanent option might be better. Learn about life insurance that doesn’t expire.

What If You Can’t Afford New Coverage?

If you outlive term life insurance and can’t afford to convert or start a new policy, you’re not alone. Here are a few proactive steps:

Downsize coverage: Opt for a smaller permanent policy that fits your budget.

Consider guaranteed issue policies: These offer coverage without medical exams but may come with higher premiums and lower death benefits.

Speak to a licensed advisor: The Policy Shop can help match your needs to the right product.

How to Plan Ahead

If your term policy is still active, don’t wait until the end to think about next steps. Take these actions today:

Review your policy’s conversion window. Know your deadlines.

Assess your current and future needs. Do you still need coverage after the term?

Get quotes for permanent policies. See what you can afford now before rates rise.

FAQs About Outliving Term Life Insurance

Can I convert term to whole life?

Yes, many term policies allow you to convert to whole life (or another type of permanent policy like an Indexed Universal Life). The biggest benefit is you don’t need to take a new medical exam.

What if I can’t afford new coverage later?

You may be able to reduce the death benefit to lower your premium or explore limited-pay policies. Also consider smaller final expense policies as backup protection.

Should I get a permanent policy instead?

If you want lifelong coverage, access to cash value, or a guaranteed death benefit, then a permanent policy may be a better fit. Talk with an advisor to compare both options based on your budget and goals.

Final Thoughts

Outliving your term life insurance doesn’t have to be a problem. With smart planning and the right options, you can ensure your family stays protected long after your term ends.

✅ Ask The Policy Shop how to protect your family even after your term ends. Our experts can walk you through your options and help you convert to permanent coverage that fits your needs and budget.

Explore your next chapter with confidence.