Updated September 2026 · Reviewed by the CoverageCo team
When a term policy expires, coverage simply ends and there's no payout. You generally have four options: let it lapse, renew at a much higher age-based premium, convert it to permanent coverage if the policy allows, or apply for a new policy underwritten at your current age and health.
Key takeaways
- Nothing is returned, a term policy that expires has done its job or it hasn't.
- Renewal is usually available but priced at your current age, often steeply.
- Conversion to permanent coverage typically requires no new medical underwriting.
- Act 12–24 months before expiry, while you still have every option.
Your four options, honestly compared
Which one is right depends almost entirely on whether you still have someone depending on you.
| Option | What it means | Best when |
|---|---|---|
| Let it lapse | Coverage ends, nothing owed or returned | The obligation is gone, mortgage paid, children independent |
| Renew | Continue year to year at your current age | You need short-term cover while arranging something else |
| Convert | Turn some or all into permanent coverage, usually no new underwriting | Your health has declined and you still need coverage |
| New policy | Apply fresh, underwritten at current age and health | You're healthy and need another long term |
The conversion option is the one to check first
If your health has changed since you bought the policy, conversion may be the only route to coverage you'd still qualify for.
It typically requires no new medical questions, that's the entire value of it. But conversion windows are limited: many policies allow it only until a certain age or within a set portion of the term, and only into specific permanent products.
Find your policy's conversion deadline now rather than at expiry. People discover the window closed two years ago far too often, and there's no appealing it.
Why renewal premiums jump so sharply
A level term policy priced your risk at the age you bought it. Renewal reprices it at your current age, often annually and increasing each year.
The increase is usually dramatic, this isn't a gentle adjustment. Renewal is best understood as a short bridge while you arrange something else, not as a plan.
Start 12 to 24 months out
That window matters because it's when you still have every option open. You can shop a new policy without time pressure, exercise conversion before a deadline, or confirm you genuinely don't need coverage anymore.
Waiting until the expiry notice arrives collapses your choices to the two most expensive ones.
An agent can pull your current policy's conversion terms and compare what a new policy would cost at your age today. Free, and worth doing before the clock runs out.
Common questions
Do I get my money back when term life expires?
No, not with a standard term policy. You paid for coverage during the term and had it, in the same way home or auto insurance works whether or not you filed a claim.
Can I renew my term life policy?
Many policies allow renewal, but at a premium based on your current age, which is usually substantially higher and can increase annually. It's best used as a short bridge rather than a long-term plan.
Can I convert term to whole life after the term ends?
Usually not. Conversion options generally expire before the term does, often at a set age or partway through the term. Check your policy's conversion deadline well in advance.
Should I buy a new policy or renew?
If you're in reasonable health, a new policy is almost always cheaper than renewing. If your health has declined, conversion or renewal may be the only realistic routes.