Skip to Content
Multigenerational family talking on couch representing that different stages require different insurance policy types.
Policy Types

Term life insurance: 3 options when your policy is getting ready to expire

Term life insurance has an expiration date so there are things to consider as that date nears and you find yourself still needing life insurance coverage. Some options are covered in this article.

Unlike permanent* life insurance, term life is considered temporary coverage. And depending on the length of the term policy you purchased, your coverage term could be anywhere from one, five, 10 or even 30 years. But what happens then?

If your term life insurance is coming up close to the final year and you still need to have coverage in force, there are a few options that might be available for you:

Buy a new life insurance policy

You may want to compare rates from different companies and consider replacing your policy with a new one. This will mean a new application and possibly a life insurance medical exam. The downside of this option is that your new policy rates will be based on your current age and health. For example, if the 20-year term policy that you bought when you were 30 expired, your new rates will be based on your current age of 50. In addition, certain medical conditions may disqualify you from obtaining a new policy. So if you're still in good health, shop around and consider applying for a new term or even a permanent policy.

Combine policy types

If owning a permanent life insurance policy that earns cash value appeals to you but won't fit in your budget, consider a combination of term and permanent life insurance. For example, if you need $500,000 of coverage, you may might consider $250,000 of term and $250,000 of universal life (or any other combination). This way, you have your needs covered while securing a permanent policy. Ask your agent about running various quote combinations to see what works for you.

Convert your policy

Check with your agent about your policy's conversion options. Depending on your type of policy, you may be able to convert all or a portion of your policy into a permanent policy without having to prove your insurability (commonly referred to as a conversion privilege). Some term policies allow you to do this only at certain intervals or dates, so check your policy. These are just a few options that you may have available when your term life policy expires. Remember, when your term policy expires or you stop paying your required premiums, your coverage ends. The following are considerations before you make that initial term life purchase:

  • Try to approximate the length of coverage (term) that you may need, and try to buy the longest term you can afford when initially securing a new policy.
  • Ask your agent about options for a renewable term policy, as well as policy provisions that allow you to convert your term into a permanent policy.

Don't wait until your term life insurance policy has expired to review your options. If your term policy will be expiring soon, discuss with your agent options that may be available to you. 

 

*As long as required premium payments are timely made.

 

WEB.1277.01.15

Arrows linking indicating relationship

Related Articles

Mom, dad, daughter and dog play in living room

Permanent life insurance cash value advantages

Learn more
Older couple running in park; they may be candidates for life insurance that covers a funeral or burial expenses.

Funeral planning checklist and burial expenses

Learn more
Family spending quality time together.

Life insurance riders: Taking advantage of policy benefits in your life insurance policy

Learn more
All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective or its subsidiaries.

Neither Protective nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective or its subsidiaries.