If your health has changed, the conversion deadline may be the most valuable date in your policy — and it isn’t on the first page.
Enter your dates and premiums to see what each option would cost →
Verified October 24, 2026. Contract terms vary by insurer and policy form — your contract controls.
End-of-Term Cost & Deadline Check
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What Actually Happens on the Expiration Date
When a term policy reaches the end of its term, coverage ends, and no death benefit is paid for a death after that date.
Standard term insurance returns no premiums if you outlive it. You paid for protection, and the protection ran its course.
The exception is return-of-premium (ROP) term. It refunds the premiums you paid, but only if you keep the policy to the end of the term.
Your insurer may send a notice before the level period ends. What it says varies, and it may not mention your conversion deadline. Treat the notice as a prompt to read your contract, not as a full list of your options.
The end date is not the only date that matters. The next section shows the two that usually matter more.
How this guide labels what’s what
Level period, conversion deadline, renewal scale, final expiry. Only your policy can tell you these.
Grace periods, lapse notices, group-policy conversion windows. These come from state law and vary.
Which option fits your situation. We lay out the choices; we don’t pick one for you.
The Two Deadlines Inside Your Policy
Your policy has at least two dates that matter — when the fixed premium ends and when the right to convert ends — and a third date if the policy can renew up to a final age.
These dates are printed in your policy or its schedule pages (the third applies only if your policy renews). If you can’t find them, the question list near the end of this guide shows what to ask your insurer.
Deadline 1: Your level period ends
What it means: The fixed premium stops. Your premium moves to the post-level schedule, or coverage ends if your policy doesn’t renew.
Where to find it: The policy data or specifications page, and the premium schedule page.
What happens after it: Depends on your contract: renewal at higher premiums, or the end of coverage.
Deadline 2: Your conversion right ends
What it means: The last date you can exchange the term policy for permanent coverage without new medical underwriting.
Where to find it: The conversion provision in your policy. Your insurer can confirm the date in writing.
What happens after it: The right is gone. Permanent coverage would then mean a new application and new underwriting.
A possible third date: if your policy renews after the level period, it may have a final expiry — a maximum age or date after which it can’t renew. Look for it in the renewal provision or the schedule pages.
| Date | What it means | Where to find it | What happens after it |
|---|---|---|---|
| Level period ends | The fixed premium stops. The premium moves to the post-level schedule, or coverage ends if the policy doesn’t renew. | Policy data or specifications page; premium schedule page. | Depends on your contract: renewal at higher premiums, or the end of coverage. |
| Conversion privilege ends | The last date you can exchange the term policy for permanent coverage without new medical underwriting. | The conversion provision in your policy; your insurer can confirm in writing. | The right is gone. Permanent coverage would then need a new application and new underwriting. |
| Final expiry (if the policy renews) | The maximum age or date up to which the policy can keep renewing. | The renewal provision and schedule pages. | Coverage ends and the policy can’t renew further. |
The conversion deadline can come before the term ends
Here is a hypothetical, with no real policy behind it. A 20-year term bought at age 55 ends at 75. If its contract closes conversion at 70, the right to convert ends five years before the term does.
Real contracts differ. Two dated examples, from an April 2024 carrier compilation. These are examples to check against current contract forms, not rules for any policy you hold:
- Mutual of Omaha Term Life Answers: conversion until the earlier of the end of the 10-, 15- or 20-year term or age 75; for the 30-year term, the first 20 policy years.
- Symetra term: conversion until the earlier of the 10th policy anniversary or the policy anniversary after the 70th birthday (per a Symetra product sheet dated September 2022); one conversion, per the compilation.
Carriers also revise conversion rules for newly issued policies over time, so an older policy and a newer one from the same insurer can differ. Trade press has described insurers adding restrictions to conversion — shorter windows, higher minimum amounts, lower maximum ages — rather than raising term prices. That is a trend description, not a statistic about your policy.
Not sure when yours ends? Don’t assume it matches the term. Check the conversion provision, or ask in writing.
The Renewal Bill: What Happens After the Level Period
Many level-term policies continue past the level period on a renewable basis, at higher premiums that rise each year, up to a stated maximum age — but whether yours does depends on your contract.
Not every policy renews. Some end at the term date with no renewal option. Your contract says which kind you have.
The renewal premiums for each year, and the maximum renewal age, are usually printed on a schedule page. We don’t print typical amounts here, because only your own schedule applies to you.
Why the bill rises
A level premium averages the cost of your coverage across the whole term. Once the level period ends, the price follows your age each year, and covering an older person costs more. Your schedule shows how steep that climb is for your policy.
For a dated example of a final age: one carrier’s product sheet from September 2022 describes a term product that renews at annually increasing premiums until age 95, unless canceled. That is one product’s rule, not an industry rule.
| Structure | How the premium changes | What to check |
|---|---|---|
| Jump to annually renewable rates | One large increase when the level period ends, then an increase every year on an annually renewable scale. | The first post-level amount, the amounts for later years, and any maximum age. |
| Graded increases | A smaller first increase, then stepped increases over a set number of years until an annual scale takes over. | How many years of steps there are, the amount for each year, and where the steps end. |
| Coverage ends with no renewal | No new premium, because the policy ends at the term date. | Whether renewal is really not offered, and the exact end date. Your conversion date still matters. |
| Return-of-premium term | A product type that refunds premiums only if the policy is kept to the end of the term. | What happens to the refund if you convert, replace, or stop paying before the end. |
What researchers found about big increases
Actuaries call the drop-off in coverage after the level period the “shock lapse.” In a large industry study of post-level term policies, the size of the premium increase was the most important factor. It drove both how many people dropped coverage and how much worse death rates ran among those who stayed.
That pattern fits what you’d expect if people in better health are more likely to walk away from a large increase. The study does not say why insurers set the prices they do.
A 2020 report from the Society of Actuaries and the Canadian Institute of Actuaries found shock lapse higher at older issue ages and for annual rather than monthly payment modes.
The 2021 study also found that people whose billing changed from automatic payments to a mailed bill after the level period were the most likely to drop coverage.
The practical takeaway is small: find out how you’ll be billed after the level period, and confirm that automatic payments continue if you use them.
How to read your own schedule
- Find the page titled something like premium schedule or table of premiums, and look for the first year after the level period.
- Check whether every later year is printed, and whether the amounts are labeled guaranteed maximums or projected.
- Find the maximum renewal age or final date.
- Write down the first-year and last-needed-year amounts. The tool above can total them for you.
Your Five Options
When the level period or conversion window is closing, you can renew, convert in full or in part, buy a new policy, sell the policy, or let it end — and which one fits depends on your health, your need, and your dates.
The table below describes when each option tends to fit and what can go wrong. It doesn’t rank them.
Renew
Fits when: You need coverage for only a few more years, the renewal schedule is workable for those years, and the policy renews that long.
Watch out for: Premiums rise every year. The policy may stop renewing at a stated maximum age.
Deadline that matters: The final expiry date, and the date renewal premiums begin.
Convert (full or partial)
Fits when: You want coverage that doesn’t end, or your health has changed and a new policy may be hard to get. Partial conversion fits when you want some permanent coverage at a smaller amount.
Watch out for: The permanent premium is based on your age at conversion and is usually higher than your term premium. The product menu can be narrower than what’s sold new, and minimum amounts may apply.
Deadline that matters: The conversion privilege end date.
Buy new
Fits when: Your health is good, you need coverage for a defined period, and a new policy looks better than renewing.
Watch out for: New medical underwriting, and approval isn’t guaranteed. Keep the old policy until the new one is in force.
Deadline that matters: Your old policy’s conversion date keeps running while you apply.
Sell (life settlement)
Fits when: You no longer need or can’t keep the coverage, and the policy can still be converted.
Watch out for: A sale is generally possible only while the policy is convertible. Providers and brokers are licensed by state in most states. The tax depends on the facts, so ask a CPA.
Deadline that matters: The conversion deadline. A buyer will ask for it.
Let it end
Fits when: You’ve checked and no one depends on the coverage, and your savings cover what it was for.
Watch out for: Once the conversion right has passed, you can’t go back. Confirm the end in writing rather than by missing a payment.
Deadline that matters: The conversion date, before you decide.
| Option | Fits when | Watch out for | Deadline that matters |
|---|---|---|---|
| Renew | You need coverage for only a few more years, the schedule is workable for those years, and the policy renews that long. | Premiums rise every year. The policy may stop renewing at a stated maximum age. | The final expiry date and the date renewal premiums begin. |
| Convert (full or partial) | You want coverage that doesn’t end, or your health has changed and a new policy may be hard to get. Partial conversion fits when you want some permanent coverage at a smaller amount. | The permanent premium is based on your age at conversion and is usually higher than your term premium. The menu can be narrower than what’s sold new; minimum amounts may apply. | The conversion privilege end date. |
| Buy new | Your health is good, you need coverage for a defined period, and a new policy looks better than renewing. | New medical underwriting; approval isn’t guaranteed. Keep the old policy until the new one is in force. | Your old policy’s conversion date keeps running while you apply. |
| Sell (life settlement) | You no longer need or can’t keep the coverage, and the policy can still be converted. | A sale is generally possible only while the policy is convertible. Providers and brokers are licensed by state in most states. The tax depends on the facts. | The conversion deadline. A buyer will ask for it. |
| Let it end | You’ve checked and no one depends on the coverage, and your savings cover what it was for. | Once the conversion right has passed, you can’t go back. Confirm the end in writing rather than by missing a payment. | The conversion date, before you decide. |
Converting: Full, Partial, and What It Really Costs
Converting means exchanging your term coverage for a permanent policy from the same insurer, generally without new medical underwriting.
Which permanent products you can convert to, the smallest amount you can convert, whether partial conversion is allowed, and whether there’s a conversion credit are all set by your policy and your insurer’s current rules.
Your original health class typically carries over. That is the main thing conversion gives you: you keep your earlier health rating, not a low price.
The permanent premium is based on your age when you convert, so it is usually well above what you paid for term.
Some contracts allow a partial conversion. You convert part of the coverage to permanent and may keep the rest as term until it ends. Minimum amounts can apply to both pieces.
Some contracts also offer a conversion credit. We don’t print typical credit sizes, because only the contract form can tell you whether one exists and how it works.
Ask for an illustration of any product you’re considering. It should show premiums and what’s guaranteed, so you can judge it for the years you’d keep it. If you also hold riders, ask what happens to them when you convert. Waiver of premium is one example.
Whether permanent coverage is worth its cost is a separate question from whether you can convert. For that comparison, see Term vs Whole Life Insurance and Is Whole Life Insurance Worth It?
On any new or converted policy, review the beneficiary. If your life has changed, see Life Insurance Beneficiary After Divorce.
Buying a New Policy Instead
A new policy can cost less than renewing or converting when your health is good, but it’s an option only if you pass underwriting, so keep the old policy until the new one is in force.
A new policy is priced on your current age and health, and it requires new medical underwriting. Renewal and conversion generally don’t.
The overlap rule is simple. Don’t cancel, drop, or stop paying the old policy until the new one is approved, issued, and in force.
While you apply, your old policy’s conversion deadline keeps running. If your health could change the outcome, check that date first.
If you’re weighing term against permanent coverage for the new policy, see Term vs Whole Life Insurance.
Selling Your Term Policy
A term policy can sometimes be sold through a life settlement, but generally only while it can still be converted to permanent coverage.
Industry sources say most buyers consider term policies only if they’re convertible. They describe selling a non-convertible term policy as possible but rare. Ask your insurer for the last date your policy can be converted. A buyer will ask for it.
Eligibility and offers vary by buyer and by health. This guide doesn’t publish eligibility ages or offer sizes, because they would mislead.
Life settlement providers and brokers are licensed by state in most states. Check your state insurance department, or the NAIC’s licensing materials, before you share any medical records.
Licensing, required disclosures, and rescission rights for settlements are set by state law and vary.
The tax basics
A 2017 tax law change (TCJA section 13521) added section 1016(a)(1)(B) to the Internal Revenue Code. When you sell a life insurance contract, your basis is no longer reduced by the cost-of-insurance charges. Revenue Ruling 2020-5 modified Revenue Rulings 2009-13 and 2009-14 to match.
The tax on the proceeds still depends on your facts. Talk to a CPA before you sell. We don’t compute it here.
For more on selling, see Life Settlement Companies. For taxes in general, see Is Life Insurance Taxable?
Letting It End
Letting a term policy end can be reasonable when the reasons you bought it no longer exist.
A short check, before you decide:
- Does anyone still depend on your income?
- Are the debts the policy was meant to cover paid off or covered by savings?
- Would your savings cover final expenses and any gap your family would face?
- Is there a need you haven’t thought about, such as support for a spouse’s retirement?
If you’re not sure, see How Much Life Insurance Do I Need? A fee-only planner can help with a keep-or-drop decision.
Make the decision on purpose, and before your conversion deadline passes. Don’t let coverage end by missing a payment, and don’t let it end before any replacement is in force. Ask your insurer to confirm the end date in writing.
If Your Coverage Is Through Work
Employer group life usually ends when you leave the job, and state law commonly gives you a short window — often 31 days — to convert it to an individual policy without proving you’re insurable.
Florida (Fla. Stat. §627.566) and Montana (Mont. Code §33-20-1209) both require group life policies to let you convert without evidence of insurability. Your application and first premium are due within 31 days after coverage ends. Check your own state.
| Type | How it ends | Conversion window | Medical questions | Who sends notice |
|---|---|---|---|---|
| Individual term (a policy you own) | At the end of the term or final expiry, or after missed payments. | Set by your contract. It can end before the term does. | Conversion and renewal generally don’t require new medical underwriting. A new policy usually does. | Your insurer, under your contract and state rules. What it sends varies. |
| Group life at work | When you leave the job or lose eligibility, or when the employer ends the plan. | Commonly 31 days after coverage ends, under state law (examples: Florida, Montana). | None required to convert under the statutes cited. | Varies by state and employer. Montana, for example, has a separate section on notice of the conversion right (§33-20-1212). |
Under both statutes the converted amount can’t exceed what ended, and the premium is at the insurer’s regular rate for your age. Florida’s statute also lets the group policy leave out an option to convert to term. Read your certificate.
Montana’s code also covers a death during the conversion window. If it happens before the individual policy starts, the amount you could have converted is paid as a claim under the group policy (§33-20-1211).
A different rule applies when the whole group policy ends, as opposed to your leaving it. In Florida (§627.567), conversion in that case requires a minimum time insured and is capped. For the basics of work coverage, see Life Insurance Through Work.
Missed a Payment? Grace Periods Aren’t Expiration
A grace period is extra time to pay a missed premium on a policy that’s still running; it is not the policy reaching its end date.
Minimum grace periods and lapse-notice rules come from state law. Two examples follow. Other states differ, and your policy’s own grace provision controls.
- California: every life policy issued or delivered in the state must include a grace period of at least 60 days (Insurance Code §10113.71). A notice of pending lapse must be mailed at least 30 days before termination for nonpayment, and the law lets you name a secondary addressee (§10113.72).
- Utah: the individual life grace-period statute has set a minimum of 31 days (Utah Code §31A-22-402), and a 2021 amendment added notice to a third party you designate before coverage is terminated.
The policy generally stays in force during the grace period. If you die during it, the insurer may subtract the unpaid premium from the benefit. Check your policy.
Naming someone besides yourself to receive lapse notices is worth asking about. The questions list includes it.
Taxes at the End of a Term
Standard term ending on its end date is generally not a tax event; selling a policy may be; and converting under your contract’s own privilege is generally not treated as a sale — confirm each with a CPA.
For a sale, the basis rules in the selling section apply, and the result depends on your facts.
If you hold return-of-premium coverage, ask your insurer and a CPA how the refund is reported.
For more general rules about taxes on life insurance, see Is Life Insurance Taxable?
Questions to Ask Your Insurer Before Your Term Ends
Copy these into an email or read them on a call. Ask for the answers in writing.
- 1. Dates: On what date does my level premium end? On what date does my conversion privilege end? Is there a final expiry age?
- 2. Renewal: Will the policy renew automatically? What is the premium for each year after the level period, and where is that schedule printed?
- 3. Conversion menu: Which permanent products can I convert to today? Can I convert only part of the coverage? Is there a minimum amount?
- 4. Conversion pricing: Will my original health class carry over? Is there a conversion credit? Please send an illustration.
- 5. Riders: What happens to any riders I have (for example waiver of premium) if I renew or convert?
- 6. Selling: If I’m considering a life settlement, what is the last date this policy can be converted? (A buyer will ask.)
- 7. Payment and lapse: What is my grace period, and who will receive a lapse notice? Can I name a secondary addressee?
- 8. In writing: Please confirm all of the above in writing.
Frequently Asked Questions
Short answers to the questions readers ask most about the end of a term policy. Your own contract has the final word on every one.
What happens when term life insurance expires?
Coverage ends, and no death benefit is paid for a death after the end date. Standard term refunds nothing. Two earlier dates — the end of your level premium and the end of your right to convert — often matter more.
Do I get my money back if I outlive my term policy?
Not with standard term. Return-of-premium term refunds the premiums you paid, but only if you keep the policy to the end of the term.
Does term life renew automatically?
Many level-term policies continue past the level period on a renewable basis at higher premiums, up to a stated maximum age. Some end at the term date. Your contract says which.
How much will my premium go up after the level period?
It depends on your contract's structure: one large jump to an annually renewable scale, or stepped increases. We don't give a figure, because only your own schedule applies. The tool above can total the schedule figures you enter.
Where do I find my renewal premiums?
Look for a premium schedule or table of premiums in your policy. If you can't find one, ask your insurer to send it in writing.
What is my conversion deadline, and where do I find it?
It's in the conversion provision of your policy, and it can come before the term ends. Your insurer can confirm the date in writing.
Can I convert after the term ends?
Generally no. The right to convert ends on the date in your contract, which can be before the term ends. If you think yours has passed, check with your insurer, because contracts differ.
Do I need a medical exam to convert?
Conversion generally doesn't require new medical underwriting, and your original health class typically carries over. Confirm this for your policy.
Can I convert only part of my policy?
Some contracts allow it, and minimum amounts may apply. Ask your insurer whether partial conversion is available and what the minimums are.
Is converting better than buying a new policy?
Neither is better in general. Conversion avoids new underwriting, which can matter if your health has changed. A new policy may cost less if your health is good. See Term vs Whole Life Insurance.
Can I sell a term life insurance policy?
Sometimes. A sale is generally possible only while the policy can still be converted, and the terms depend on the buyer and on health. See the selling section above.
Is selling a life insurance policy taxable?
It may be. Your basis is no longer reduced by the cost of insurance after the 2017 tax law change, but the tax depends on your facts. Ask a CPA.
Can I extend my term policy?
Extending usually means one of three things: renewing, if your policy renews; converting to permanent coverage; or buying a new policy. Which are open to you depends on your contract and your health.
What happens to my policy at work when I leave my job?
Group coverage usually ends, and state law commonly gives a short window, often 31 days, to convert it without proving you're insurable. Check your state and your certificate. See Life Insurance Through Work.
What's the difference between a grace period and expiration?
A grace period is extra time to pay a missed premium on a policy that's still running. Expiration is the policy reaching its end date.
What if I die during the grace period?
The policy generally stays in force during the grace period, and the insurer may subtract the unpaid premium from the benefit. Check your policy's wording.
Should I cancel my old policy before the new one starts?
No. Keep the old policy until the new one is approved, issued, and in force.
Do I still need life insurance after my term ends?
It depends on who relies on your income and what debts or needs remain. See How Much Life Insurance Do I Need? A fee-only planner can help.
Sources Checked
All checked October 24, 2026. Statutes are cited by section; read the current text for your state.
- SCOR / Society of Actuaries, U.S. Post-Level Term Lapse and Mortality Experience (2021); SOA report page.
- Society of Actuaries / Canadian Institute of Actuaries, Lapse and Mortality Experience of Post-Level Premium Period Term Plans 2012–2017 (2020).
- Internal Revenue Code §1016(a)(1)(B) (Pub. L. 115-97, §13521); Rev. Rul. 2020-5, 2020-9 I.R.B. 454. Explained in Taxing Times, December 2021.
- Fla. Stat. §627.566 and §627.567.
- Mont. Code Ann. §33-20-1209 (2013 edition) and §33-20-1211 (2023 edition).
- California Insurance Code §10113.71 and §10113.72.
- Utah Code §31A-22-402 and §31A-22-430.
- NAIC, State Licensing Handbook, Chapter 30: Viatical and Life Settlement Providers and Brokers.
- Carrier conversion examples: term conversion privileges compilation (examples only); Symetra product sheet LIM-1598 (9/22).
- Trade press on conversion restrictions: WealthManagement.com; Wealth Professional.
- Trade press on selling term policies: ThinkAdvisor, Solving the Mystery of Term Life Settlements.
Last updated:
This guide is general information, not insurance, tax, or legal advice. Contract terms vary by insurer and policy form, and your contract controls. Carrier examples are dated and may have changed. A licensed agent can show you the conversion menu, a fee-only planner can help with the keep-or-drop decision, and a CPA can advise on any sale. Based on sources verified on October 24, 2026.
Daniel Hayes is the founder and sole researcher at AdvoraHQ. He covers U.S. personal finance, insurance, and consumer law — working directly from IRS publications, federal and state statutes, court opinions, and SEC filings rather than secondary summaries. His focus is the gap between what readers think they know and what the source documents actually say. Daniel is not a licensed attorney, CPA, or financial advisor; his articles are educational and not personalized advice. Reach him at Daniel.Hayes@advorahq.com.
