Term life insurance is designed to provide a death benefit for a specific period. A policy might provide level coverage for 10, 20, 30, or another number of years depending on the product.

If the insured person dies while qualifying coverage is in force during the covered term, the insurer pays the applicable death benefit to the named beneficiaries, subject to the policy’s terms.

If the insured person is still alive when the level term ends, the original coverage period has been completed. What happens next depends on the policy.

With traditional term life insurance, usually not.

Term insurance is primarily designed to transfer the financial risk of dying during a particular period. You pay premiums for that protection. If you survive the term, the insurer has provided the coverage promised during those years, but there is generally no maturity payment simply because no death claim occurred.

Most traditional term policies also do not build cash value. This makes them different from permanent forms of life insurance that may accumulate cash value under the policy.

Return-of-premium term insurance is an important exception to the general rule.

The NAIC describes return-of-premium coverage as a term feature that can refund part or all of eligible premiums if the policyholder outlives the specified term and no death benefit is paid, subject to the contract.

These policies generally cost more than comparable traditional term coverage because of the potential premium refund.

Letting the policy end may be reasonable if the financial need that originally justified the coverage no longer exists.

For example, when you originally purchased the policy you may have had young children, a large mortgage, limited savings, and decades of income that your household depended on.

By the end of a 20- or 30-year term, the situation could look very different. Your children may be financially independent, the mortgage may be paid off, retirement accounts may have grown substantially, and your spouse may no longer depend on years of your future earnings.

Many term life policies contain a renewal provision that allows coverage to continue after the original term without requiring new proof of insurability.

That can be extremely valuable if your health has changed and obtaining a new policy would be difficult.

However, renewal does not necessarily mean you continue paying the same premium. NAIC consumer guidance warns that premiums may be higher when term coverage is renewed and recommends checking how premiums change and whether the right to renew ends at a specified age.

A common surprise occurs when a level-term policy reaches the end of its guaranteed level-premium period.

During the original term, the scheduled premium may have remained unchanged for many years. After that period ends, renewal premiums can be based on the insured person’s older attained age and the policy’s renewal schedule.

That can make continued coverage significantly more expensive than it was during the level-term period.

Some term policies include a conversion privilege. This can allow eligible term coverage to be converted into a permanent or cash-value life insurance policy during a specified conversion period.

One of the potentially valuable features of conversion is that the policyholder may be able to convert without proving insurability again, depending on the contract.

That can matter if health has deteriorated since the original term policy was issued.

Conversion does not mean the premium remains unchanged. Permanent insurance is generally more expensive than term insurance, and the converted policy’s premium can reflect the insured person’s age and the type of permanent product available under the conversion provisions.

If you still need substantial life insurance, another option is to apply for a new term policy.

A new policy can sometimes provide a more affordable long-term solution than paying expensive post-term renewal premiums on the existing contract.

However, a new application may involve underwriting. Your current age, health, and other underwriting characteristics can affect the premium and whether you qualify.

Someone who was healthy when a 20-year term policy began may have a very different insurance profile two decades later.

If you intend to replace expiring term coverage with a new policy, avoid creating an unintended gap.

NAIC consumer guidance recommends keeping existing life insurance until the replacement policy has been received and reviewed.

An application for new insurance is not the same as having an active new policy. Underwriting, approval, delivery, premium payment, and effective-date requirements may still need to be completed.

Before choosing renewal, conversion, or replacement, calculate whether the original financial need still exists.

Ask what would happen financially if you died after the original term expired.

Even if you still need life insurance, you may not need the same death benefit you purchased decades earlier.

Many financial obligations decrease over time. A mortgage balance can decline, children can become independent, retirement assets can grow, and the number of years of income that needs to be replaced can shrink.

For example, someone who originally needed a large death benefit to support a spouse and three young children might still want coverage 20 years later, but perhaps only for a surviving spouse or a remaining financial obligation.

Recalculating the amount may make replacement coverage more affordable than simply continuing the original amount.

Consider a hypothetical homeowner approaching the end of a 20-year term life policy.

Simply renewing the full original death benefit at a sharply higher premium might not be the most efficient solution.

If the insured remains eligible for new coverage, a smaller new term policy might better match the remaining need. If health has significantly deteriorated, renewal or conversion rights under the existing policy could become more important.

The example is hypothetical and illustrates why both current financial needs and current insurability should be reviewed before the original term expires.

Health changes can make end-of-term planning much more important.

If you apply for a new individually underwritten policy, the insurer can evaluate your current health and other permissible underwriting factors. A significant health condition could increase premiums or affect whether new coverage is available.

Renewal and conversion provisions can therefore become particularly valuable because they may allow continued coverage without the same type of new medical underwriting, subject to the policy.

Do not wait until the final premium notice arrives to decide what to do.

Reviewing your options before expiration gives you time to calculate your current insurance need, understand the renewal schedule, check conversion rights, and apply for competing coverage if appropriate.

The exact timing depends on your contract and circumstances, especially because conversion privileges may have specific deadlines that do not necessarily match the final day of the level term.

When a traditional term life insurance policy reaches the end of its original term, you generally do not receive a payout simply because you survived the coverage period. Most term insurance also has no cash value to withdraw.

Your next step depends on whether you still need insurance. You may be able to let the policy end, renew it at a higher premium, convert eligible coverage to permanent insurance, or apply for a new policy.

Review the decision before the term expires. Current financial needs, health, age, renewal premiums, conversion deadlines, and available replacement coverage can all affect which option makes the most sense.

• National Association of Insurance Commissioners, Life Insurance Consumer Guidance, accessed August 2026.
• National Association of Insurance Commissioners, Life Insurance, updated November 2025.
• National Association of Insurance Commissioners, Life Insurance Buyer’s Guide, 2024.
• National Association of Insurance Commissioners, What Type of Life Insurance Is Right for You?, 2023.
• California Department of Insurance, Life Insurance Guide, accessed August 2026.