If you have a term life insurance policy, you already know that it provides coverage for a specific term or period of time, usually between 10 and 30 years. But what happens when the term of your policy comes to an end? You have three basic choices: extend your current term policy, convert your term policy to a permanent policy, or get a different life insurance policy.
| Option | Pros | Cons |
|---|---|---|
| Extend your current term policy | No new underwriting process or medical exam required | Premiums will increase |
| Convert your term policy to a permanent policy | Permanent coverage with a cash value component | Higher premiums than a term policy |
| Get a different life insurance policy | Opportunity to find a policy that better fits your current needs | New underwriting process and medical exam required |
If you choose to extend your current term policy, keep in mind that the insurance company will change your premium. If you choose to convert your term policy to a permanent policy, make sure to begin the conversion process well before your term expires. If you choose to get a different life insurance policy, shop around for the best option that fits your current needs.
When choosing a life insurance policy, it’s important to assess who is relying on you for protection. GetSure can help you calculate how much coverage you may need and give you an instant quote online – when you’re ready, give us a call at 775-GET-SURE.
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Article Sources
- Investopedia. Renewable Term - Insurance
- Investopedia. About Renewable Level Term Life Insurance
- The Guardian Life Insurance Company of America. Should You Renew Your Term Life Insurance Policy?
- Sproutt. The High Cost Of Renewing A Term Life Insurance Policy
- Zurich Insurance Group. What Will Happen When My Term Life Insurance Expires?