What Should You Do When Your Term Life Insurance Expires?

If you have a term life insurance policy, it is important to know what your options are when the policy comes to an end. You have three choices:

Option	Description
Extend your current term policy	You can renew your policy on a year-to-year basis, but the premium will increase.
Convert your term policy to a permanent policy	You can convert your term policy to a permanent policy without having to undergo a new medical exam.
Get a different life insurance policy	You can find a new policy that better fits your current needs.

If you choose to extend your current policy, keep in mind that permanent policies provide coverage for a lifetime and include a cash value component. On the other hand, term policies provide coverage for a limited period and do not include a cash value component. If you are still in good health and want a substantial level of coverage, you can shop around for a new term-life policy.

If you want to extend or convert your current term policy, talk to your life insurance company, agent, or broker well before it expires. Make sure to find out about the types of life insurance policies available, costs involved, and what specific options are available to you. If you’re thinking of getting a new policy, shop around a bit. A good place to start is to get an instant quote online or speak with an agent or financial professional.

Combining a permanent (whole or universal) 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. There’s no one-size-fits-all answer, so it’s important to assess your current situation and who is relying on you for protection. A financial professional can help you better understand your options.