What Happens When A Term Life Insurance Term Ends?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    When a Term Life Insurance policy reaches the end of the term, most people choose to get a new policy. That is because the price jumps up to an unaffordable amount, for most people, and can continue to go up annually after that.  Some policies allow the term policy to be converted to permanent for a number of years, and by a certain age. This price will be much higher than the original term cost was, as well, but at least it will be locked in.
    Answered on July 31, 2013
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  2. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    When a term life insurance contract ends the coverage ends with it. Some term life insurance policies offer conversion to permanent life insurance within the window of convertibility. Term life insurance is sometimes sold to the life settlement market for cash, if the conversion clause is still in affect and applicable.
    Answered on July 31, 2013
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  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    If planning has been done well, the policy will end just as the need for the coverage ends.  Unfortunately, often the policy ends before obligations are completed.  The insured is then faced with some painful decisions.  Continuing the coverage with the current policy is often an option but at a substantially higher premium.  If the customer’s medical condition is still good, they can apply for new coverage.  While that option will be more expensive than the completed policy it will probably be less than the continuation policy.
    Answered on May 22, 2014
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  4. 410 POINTS
    Drew Ward
    Owner, LifeInsuranceForBusinesses.com, Atlanta, Georgia
    Most term insurance policies increase dramatically in price after the level term period and clients simply stop paying for them and they lapse. Many term policies have conversion options that allow a policy owner to exchange part or all of their term policy into a permanent policy that will last forever. These options vary from company to company so its always good to ask an agent or call the insurance company.
    Answered on August 25, 2014
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  5. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The term period of a term life insurance policy is the number of years that the premium will stay the same, or "level". When the term ends, the premium jumps way up, and goes up every year after that. If the policy is not renewable, or the Insured is past the age at which renewable premiums apply, the policy simply ends when the term ends.
    Answered on August 25, 2014
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  6. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    With many companies, after the term has ended, the policy ends. But with most, the policy continues, but at a much higher premium, forcing many to just stop paying. Either way, the smart thing to do if you can, is convert your term to permanent, while you still can convert. Or get a new permanent policy, if your health permits. The earlier the better! Talk with a live agent. GARY LANE. Thank you.
    Answered on August 26, 2014
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