Your coverage stops and no money is paid out. You may be able to renew it, convert it to a permanent policy or buy a new one.
Term life only pays if you die during the term. When the term ends, the policy no longer covers you.
Renew: Many term policies can be renewed even if your health has changed. The price usually goes up each time. Ask if renewal stops at a certain age.
Convert: Some policies let you switch to a permanent policy for a limited time without health questions. The new premium will be higher.
Buy new: If your policy cannot be renewed, you must apply for new coverage. That means new health questions and maybe an exam.
You do not get your premiums back unless you bought a return of premium rider.
- Renew the policy
- Convert it to permanent life
- Buy a new policy
- Let it end if you no longer need it
More questions
Can I get my money back when term ends?
Not with a regular term policy. Only a return of premium rider pays you back, and it costs a lot more.
Should I let it end?
If your kids are grown and debts are paid, you may need less coverage. Check before you decide.
Words to know
- Premium
- The amount you pay an insurance company for your policy.
- Return of premium
- A term policy that refunds all your premiums if you are still alive at the end of the term. It costs much more than plain term.
- Rider
- An add on to a policy that changes what it covers. It can add benefits, lower them, or leave some things out.
