What Happens When Term Life Insurance Expires?
Term life insurance provides coverage for a set number of years, often 10, 20, or 30. Many people choose term life insurance for the years when their families may depend more on their income, such as while raising children or paying a mortgage.
If you are still living when the term ends, the policy generally expires and no death benefit is paid. Depending on your policy and current needs, you may be able to renew your coverage, convert it to permanent life insurance, or apply for a new policy.
Do I get money back if I outlive my Term Life Insurance?
No. If you have standard term life insurance, you generally will not get your premiums back when the term ends. Your payments provided financial protection while the policy was active, even if a claim was never filed.
Return-of-premium term life insurance works differently. If you have this type of policy, you may get some of your premiums back when the term ends if the policy requirements are met.
What are my options when Term Life Insurance expires?
When your term life insurance is set to expire, your options depend on your policy terms, age, health, and continued need for life insurance. Options may include:
Renew your term life insurance policy: Some policies allow you to continue coverage, although premiums may increase.
Convert term life insurance to permanent coverage: An eligible term policy may be converted to permanent life insurance before a policy-specific deadline.
Apply for a new life insurance policy: You may be able to purchase new term or permanent coverage based on your needs.
Let your life insurance policy end: Before your coverage ends, consider whether anyone depends on your income, how much debt you have, and whether your family could cover housing, final expenses, and other financial responsibilities without you.
Make a plan before your Term Life Insurance expires
If those you love depend on you, don’t wait until the last minute to decide what comes next. Your local Alfa® agent can review your policy, explain your options, and help you plan for the years ahead.
All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the deductibles, coverages, conditions and exclusions. Your Alfa® agent can explain the policy and benefits and answer any questions you may have before you buy.