What Happen When the Term Ends?

If you no longer need the coverage you can simply cancel the policy. But what happens if you buy a term policy only to realize at the end of the term that you still have a need for life insurance? Multiple options are available:

To continue coverage you can apply for “re-entry” into a new policy with the same company, or you can simply shop the marketplace and find new coverage at the lowest possible market rates. Both scenarios typically require a new medical exam. If you are approved for new or continued coverage, you will be able to lock in a new rate for a new term period of your choice (as long as the maximum issue age for that plan has not been exceeded).

If you don’t apply for re-entry, find other coverage, or if the results of your re-entry medical exam disqualify you for re-entry, you will still have a guaranteed right to annually renew your policy through age 95 (in most cases). However, renewal premiums will increase each year and are substantially higher than the original term premium.

Many term life policies allow you to convert your term coverage into a new permanent policy (Universal Life or Whole Life). These options typically do not require a new medical exam but often must occur before the initial term period expires.