What Happens If You Outlive Your Term Life Insurance?

Ever worry about running out of gas on a long road trip? That’s kind of what it’s like if you outlive your term life insurance policy. You’re left stranded without coverage when you need it most. But don’t panic - there are ways to avoid this roadblock.

What is Term Life Insurance?

Term life insurance provides coverage for a set period of time, usually 10-30 years. It’s designed to protect your loved ones financially if something happens to you during that term. Think of it like renting an apartment - you pay for temporary housing, but don’t build any equity.

When the term ends, so does your coverage. If you want to stay insured, you’ll need to renew or get a new policy (likely at a higher rate due to your age).

What Happens If You Outlive It?

If you’re still kicking when your term life insurance expires, you’re left without a death benefit for your family. No one plans to outlive their policy, but people are living longer these days. So what can you do?

Renew or Convert

Most insurers allow you to renew your term life policy annually after it expires, though rates rise yearly due to your age. Alternatively, many policies let you convert to a permanent life insurance plan during your term without a new medical exam.

Buy a New Policy

You can apply for a new term or permanent policy, but be prepared for higher rates and strict underwriting due to your age and health status.

3 Surprising Facts

🤯 Outliving your term life insurance used to be rare, but life expectancy has increased over 60% in the last century!

😮 The older you are, the harder (and pricier) it is to qualify for a new policy. A healthy 60-year-old will pay 4-10x more than a 30-year-old for the same coverage.

😲 Many people mistakenly think their term policy will cover them for life. In reality, most policies max out at 30 years.

Learn More

• Permanent Life Insurance: Provides lifelong coverage, but is much more expensive than term life. Learn the key differences.

• Life Insurance Underwriting: The process insurers use to evaluate your risk and set your rates based on age, health, lifestyle, etc.

• Life Insurance Needs Calculator: Not sure how much coverage you need? Use this tool to estimate based on your debts, income, and family situation.