Term life
What Happens When Term Life Insurance Ends?
When term life insurance ends, coverage stops and no benefit is paid if you're still alive. Your options: renew, convert, buy new coverage, or let it go.
Reviewed by Brian Carrozzi
Founder, RestAssured · Licensed life insurance agent
Updated · How we write and review
Short answer: When term life insurance ends, your coverage stops. If you’re still alive at the end of the term, no death benefit is paid, and term policies generally don’t have cash value to cash out. Before the end date, you may be able to renew, convert to permanent coverage, apply for a new policy, or let the coverage go if you no longer need it.
What happens when term life insurance ends?
Term life is coverage for a set period. The Texas Department of Insurance (TDI) says in its Life insurance guide that the term “can be for one year, or anywhere from five to 30 years or longer,” and that the policy pays a death benefit to your beneficiaries if you die during the term.
When that period is over, so is the coverage. TDI puts it plainly: “The policy ends at the end of the term, unless you pay to extend it.” The New York State Department of Financial Services (NY DFS) says the same thing from the other side: “If you live beyond the term period you had selected, no benefit is payable.”
If you need a refresher on how these policies work, start with our guide to what term life insurance is.
Does term life insurance have a cash surrender value?
Generally, no. NY DFS says, “As a rule, term policies offer a death benefit with no savings element or cash value.” NAIC’s Life Insurance Buyer’s Guide says, “Most term policies don’t build up cash values that you can use in the future.”
TDI lists the same drawback in its comparison table: term coverage “Doesn’t allow you to build savings.”
So, as a rule, there’s no cash value to surrender when a term policy ends. If your policy has any special features, check your contract or ask the insurer what, if anything, is paid at the end of the term.
At what age does term life insurance end?
That depends on the length of your term and the age limits in your policy. TDI says, “Most companies offer term life insurance only up to a certain age, usually 70 or 80.”
If you’re shopping for coverage that lasts to a specific age, like term life insurance to age 90, ask the insurer or agent directly what the policy’s maximum age is. NAIC’s buyer’s guide suggests you “ask if you’ll lose the right to renew the policy at a certain age.”
What are your options before the term ends?
Here are the four paths state regulators and NAIC describe.
| Option | What it means | What to watch for |
|---|---|---|
| Renew | NAIC says most term coverage can be continued (“renewed”) at the end of the term. | NAIC: “If you renew a term policy, the new premiums are higher.” A nonrenewable policy can’t be continued. |
| Convert | NY DFS says convertible policies often let you exchange the policy for a permanent plan during the conversion period. | TDI: conversion is allowed “typically until you turn 65,” and converting will raise your premiums. |
| Buy a new policy | NAIC says that if the policy is non-renewable, you’ll need to apply for new coverage at the end of the term. | NY DFS warns your health may change, and you may be unable to get a policy at the same rates or at all. |
| Let it end | TDI says the policy ends at the end of the term unless you pay to extend it. | NY DFS says no benefit is payable if you outlive the term. |
Can you renew term life insurance?
Often, yes. NAIC’s buyer’s guide says, “Most term life insurance coverage can be continued (‘renewed’) at the end of the term.” It also notes, “A nonrenewable term policy can’t be continued.”
TDI says renewability lets you extend your policy for additional terms, regardless of your health, and that you can renew without having to take a medical exam.
The catch is price. TDI explains that premiums “will stay the same for the entire term” and “go up if you renew at the end of the term.” The reason: “your new premium will be based on your age when you renew, not when you originally bought the policy.” TDI’s table adds that premiums “will go up each time you renew.” NAIC’s consumer article advises, “Ask what the premiums will be before you renew.”
To get a sense of how age affects cost, see term life insurance rates by age.
Can you convert term life to permanent coverage?
If your policy is convertible, yes, within a time limit. TDI says, “Convertibility lets you exchange your term policy for a permanent life policy without having to take a medical exam.”
NY DFS says you “must exercise this option during the conversion period,” and if you convert within that period, “you are not required to give any information about your health.” NY DFS also notes in its FAQ that the conversion window is shorter than the term coverage itself.
Two things to know about timing and cost:
- Deadline: TDI says, “Companies usually allow you to convert term life policies only for a time, typically until you turn 65.”
- Price: TDI says, “Converting a policy will raise your premiums.” NY DFS says the conversion premium is usually based on your “current attained age,” meaning your age on the conversion date.
Ask the insurer what conversion deadline applies to your specific policy and which permanent policies you can convert into. If you’re weighing a permanent policy, our comparison of term vs. whole life for seniors may help.
What if you buy a new policy instead?
If your policy can’t be renewed, NAIC says “you will need to apply for new coverage at the end of the term.”
NY DFS describes the risk of waiting: without a renewal right, “your health may deteriorate and you may be unable to obtain a policy at the same rates or even at all, leaving you and your beneficiaries without coverage.”
Ask the agent whether applying for new coverage before your current term ends would let you avoid a gap in coverage.
Is it okay to just let term life end?
TDI describes term life as a “Good option if you want coverage for a specific period, such as when you’re raising a family.” Ask yourself whether that period is over: are the kids grown, and are the debts the policy protected paid off? If so, you may decide you don’t need to replace it.
Before you let it lapse, ask yourself whether anyone would still face a financial hardship if you died. If the answer is yes, review your options while you still have them.
What to do 1–2 years before your term ends
- Find your policy and write down the exact date the term ends.
- Check whether the policy is renewable, and ask the insurer for the renewal premium in writing.
- Ask whether you lose the right to renew at a certain age.
- Check whether the policy is convertible, and find the conversion deadline. Don’t assume it matches the term’s end date.
- Ask which permanent policies you can convert into, and what each would cost at your current age.
- List who depends on you and what debts remain, so you know how much coverage, if any, you still need.
- If you plan to apply for a new policy, ask whether you should apply while your current coverage is still in force.
- Compare all your options side by side before you decide. A licensed agent can go over them with you.
The bottom line
When term life insurance ends, coverage stops and no benefit is paid if you’re still living. Term policies generally don’t build cash value. Your choices are to renew (at a higher premium), convert (before the deadline, which TDI says is typically 65), apply for a new policy, or let it end if the need is gone. The best time to sort this out is well before your end date.
A licensed agent can go over your options and help you compare them. Here’s how calling RestAssured works.
RestAssured is not an insurance company or an insurance agency; we connect callers with independently licensed insurance agents.
Frequently asked questions
What happens when term life insurance expires and you're still alive?
The coverage ends and no death benefit is paid. NY DFS says that if you live beyond the term period you selected, no benefit is payable.
Do you get your money back when term life insurance ends?
Generally no. NY DFS says that as a rule, term policies offer a death benefit with no savings element or cash value, and NAIC’s buyer’s guide says most term policies don’t build up cash values.
Can you renew term life insurance?
Often, yes. NAIC’s Life Insurance Buyer’s Guide says most term coverage can be renewed at the end of the term, but the new premiums are higher. Some policies are nonrenewable.
At what age does term life insurance end?
It depends on the policy. The Texas Department of Insurance says most companies offer term life only up to a certain age, usually 70 or 80. Ask whether you lose the right to renew at a certain age.
Can I convert my term policy to whole life?
If it’s a convertible policy, you can exchange it for a permanent policy without a medical exam during the conversion period. TDI says companies typically allow conversion until you turn 65, and converting will raise your premiums.
Sources
- Life insurance guide (Texas Department of Insurance)
- Life Insurance Buyer's Guide (NAIC)
- What Type of Life Insurance Is Right for You? (NAIC)
- Types of Policies (New York State Department of Financial Services)
- What is "convertible" term life insurance? (New York State Department of Financial Services)
This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.