At What Age Does Term Life Insurance End?
Term life insurance is a pure life insurance product designed to provide coverage for a specific term or period of time, typically between 10 and 30 years. But what happens when the term of your policy is coming to an end?
| Option | Description |
|---|---|
| Extend your current term policy | You can usually keep on renewing your policy on a year-to-year basis until you are 95 years old. However, the insurance company will change your premium if you extend. |
| Convert your term policy to a permanent policy | You can convert your term policy into a permanent policy without having to provide evidence of insurability. Different insurance companies have different ways of handling term-to-permanent conversion, and there will be a specific deadline as well. |
| Get a different life insurance policy | You can shop around for a new term-life policy or combine a permanent policy with a term policy to get the higher death benefit and additional coverage you need for a limited period of time. |
If your family still needs the financial protection of life insurance, you have the above three basic choices. Extending your current term policy can be a good option, but the insurance company will change your premium if you extend. A permanent policy is designed to provide coverage you can’t outlive, and it includes a cash value component, but the premiums can be higher than they would be for a term policy with the same death benefit. Getting a new term-life policy or combining a permanent policy with a term policy can be one way to get the higher death benefit and additional coverage you need for a limited period of time. The type of policy that was right for your needs 10, 15, or 20 years ago may not be the best choice for your current needs today.
When it comes to life insurance, there’s no good way to answer that without taking a look at your current situation and assessing who is relying on you for protection. Talk to your life insurance company, agent, or broker well before it expires, and make sure to find out about the types of life insurance policies available, costs involved, and if you’re thinking of conversion, what specific options are available to you.
