When Your Term Policy Is Ending: Your Options, Step by Step

Term life insurance is built to end. The Texas Department of Insurance (TDI) describes it plainly: a term policy pays a death benefit if you die during the term, and the policy ends at the end of the term unless you pay to extend it. If you bought a 10-, 20- or 30-year policy years ago, that end date may now be close.

What happens next is up to you. You can let the coverage go, keep it at a higher price, convert it, or replace it with something new. The right choice depends on whether you still need coverage, your health and what you can afford. The worst outcome is drifting into a decision by default, so start early.

This is general information, not financial, insurance, tax or legal advice. Your policy's own terms control. For personal guidance, talk with a licensed professional, and contact your state insurance department if you have questions about your contract or an agent.

Find the key dates and terms now

Pull out your policy and most recent statement, or call the insurer, and confirm:

• The date your level premium period ends.
• What happens after that: whether the policy ends, or continues at a new premium.
• Whether the policy is renewable, and up to what age.
• Whether it's convertible, and the last date to convert.

The National Association of Insurance Commissioners (NAIC) suggests asking what the premiums will be before you renew, and whether you lose the right to renew at a certain age. TDI's life insurance guide (updated December 2025) says most companies offer term coverage only up to a certain age, usually 70 or 80, and usually allow conversion only until a certain age, typically 65. Your contract may differ, which is why the dates matter.

Decide whether you still need coverage

Revisit the reasons you bought the policy. The NAIC's 2026 Life Insurance Buyer's Guide suggests asking whether anyone depends on you financially, how much of the family income you provide, and how your family would pay final expenses and debts.

For example, imagine someone who bought a 20-year policy when their children were born. If the children are now on their own and the mortgage is nearly paid, the need may be much smaller. If a spouse still relies on that income, or there are new debts, it may not be.

Option 1: Let the policy end

If no one would need the money, letting the term expire may be reasonable. Keep in mind that the NAIC says most term policies don't build cash value, so there's usually nothing to collect when the term ends. Before you let it go, make sure you aren't counting on it for something you've forgotten, such as a requirement in a divorce settlement or a loan agreement.

Option 2: Renew or continue the policy

Many term policies can be continued past the original term without new health questions. The New York Department of Financial Services (DFS) says renewable term gives you the right to renew for another period regardless of the state of your health, and that the premium increases with each new term. TDI explains why: your new premium is based on your age when you renew, not when you bought the policy.

Renewal can be a sensible bridge for a short remaining need, or if your health would make new coverage hard to get. Ask for the full schedule of future premiums, since costs can climb quickly as you age. If the policy is not renewable, the NAIC notes you'll have to apply for a new policy if you still want coverage.

Option 3: Convert to permanent coverage

If you need coverage for life, or your health has changed, conversion may be worth a close look. TDI says convertibility lets you exchange a term policy for a permanent one without a medical exam or health questions, though converting will raise your premiums. See our guide Converting Term Life to Permanent: How the Option Works for the questions to ask before the deadline.

Option 4: Apply for a new policy

If you're healthy and still need coverage, a new policy might cost less than renewing. But it requires underwriting, which TDI says often includes a medical exam and questions about your health, job and habits. The NAIC's buyer's guide warns that changes in your health may affect your ability to get a new policy or its price.

Protect yourself during the switch:

• Don't cancel your current policy until the new one is in force, as the NAIC advises.
• Remember that a new policy has its own contestable period. TDI's guide says life insurance policies in Texas have a two-year contestable period; check your new policy for its own terms.
• Answer application questions truthfully. The NAIC warns that false statements can lead an insurer to reduce or cancel coverage.

Our Replace, Sell or Surrender section covers replacement rules in more detail.

Don't let coverage lapse by accident

If you plan to keep coverage, make sure premium changes don't catch you off guard. A big jump in the bill after the level period can be easy to miss if payments are automatic from an old account.

In Texas, TDI's guide says most policies have a 31-day grace period after a premium's due date, and that if you don't pay within the grace period the policy lapses. Your own policy states its grace period. TDI adds that reinstating a lapsed policy may require paying overdue premiums with interest and answering health questions or taking a medical exam. Keep your address, email and payment details current with the insurer so notices reach you.

Be wary of pressure

An expiring policy can bring sales calls. TDI's fraud guide lists warning signs, including agents who contact you unsolicited, use high-pressure tactics like a "last-chance deal," or urge you to cash in an existing policy to buy a new one. It also notes that the government doesn't sell insurance, and agents who say they're with the government are breaking the law. Check any agent's license with your state insurance department before you buy.

A simple timeline

1. A year or more before the term ends: confirm dates, renewal terms and conversion deadline.
2. Recalculate whether you still need coverage, and how much.
3. Get renewal and conversion quotes from your insurer in writing.
4. If you're healthy and still need coverage, consider applying for a new policy while the old one is still active.
5. Choose an option, and keep the old policy in force until the new arrangement is confirmed.

Key takeaways

• Term coverage ends on a set date unless you renew, convert or replace it.
• Confirm your level premium end date, renewal age limit and conversion deadline early.
• Renewal usually needs no health questions but costs more each time.
• Conversion and new policies each have trade-offs; compare them while you still have choices.
• Never cancel existing coverage until the replacement is in force.

Sources

• Texas Department of Insurance, Life insurance guide (updated December 12, 2025)
• Texas Department of Insurance, Insurance fraud guide (updated June 16, 2026)
• National Association of Insurance Commissioners, Life Insurance consumer information
• National Association of Insurance Commissioners, Life Insurance Buyer's Guide (2026)
• New York State Department of Financial Services, Life Insurance consumer information