Yes, term life insurance does expire, as it only lasts for the period you select. When that time is up, your coverage ends automatically without renewal.
There is another type called “whole life” insurance, which covers you for your entire life with no expiration date. However, these policies are usually more expensive and are often sold through advisers.
Term life insurance usually covers you for 10 to 30 years. Unlike permanent life insurance, which lasts a lifetime, term life insurance ends when the term expires. Still, you can keep your coverage going by renewing or converting the policy, which is crucial if you want to avoid buying a new policy from scratch.
Understanding what happens when your term life insurance ends is key to securing your financial future. We’re here to use our insurance know-how to guide you through your options and help you make smart choices about your coverage.
Will I Get My Money Back if I Outlive My Term Life Insurance Policy?
No, you need to know that with a term life insurance policy, you won’t be able to get back the policy money if you live beyond the policy’s end date. When your term ends, the policy just expires. You can then choose to buy a new policy or explore other financial protection options.
Do I Still Need Term Life Insurance Once My Policy Expires?
As your policy’s expiration date nears, it’s a good time to consider whether you actually need more life insurance. Your situation may have changed since you first bought the policy, and the reasons you needed coverage back then might not apply anymore.
People often get life insurance to protect their children, cover mortgages, or secure financial stability. It’s comforting to know that debts and expenses would be taken care of if something happened to you during the policy term. But if your children are grown, your mortgage is paid off, and you’ve built up other savings or assets, continuing to pay for life insurance might not be necessary once your policy ends. If you’re unsure, it is advisable that you consult a financial adviser.
Getting a New Policy
If you decide that a new life insurance policy is the right move, remember that your premiums will likely be higher now that you’re older.
As with any new policy, you’ll need to go through a full application process, including a medical and lifestyle review, before coverage can be offered. Your age will also play a role in whether you’re eligible for a new policy.
Can I Extend the Length of My Life Insurance Policy?
Yes, you can apply to extend your policy, but you need to do so before the current term ends. It’s a good idea to consider your situation before your policy expires.
If you’re making big changes, like buying a new property or remortgaging, you might want to renew your life insurance. Keep in mind that extending your policy could change your premium, and we’ll need to review any extension request based on your current circumstances.
Bottom Line
Unlike whole life insurance, which lasts a lifetime, term life insurance is designed to protect you for a specific period. When the term expires, the policy ends, and you won’t have any coverage unless you take action. Just as I have mentioned in this article, if you still need life insurance after your term ends, you’ll need to renew or replace your policy.
Always keep in mind that renewing or buying a new policy might come with higher premiums, especially as you age. It’s important to plan ahead and evaluate your insurance needs as the end of your policy approaches. So, you can ensure you maintain the coverage you need for your financial security.
