What Happens at the End of My Term Life Insurance?

term life insurance is talking about. Many people think that 10-year term policy only lasts for 10 years and that "10 years" is the "term" of the life insurance. That is actually incorrect. In this example, the premiums and coverage will be level for ten years. At the end of ten years, your coverage will probably not end for most policies. Instead, your premiums will start to increase each year. The schedule of premiums and death benefits is clearly stated for the life of the policy in your policy papers.


The "term" refers to the length of time or the age at which coverage will end. For many term policies the "term" ends somewhere between ages 70 and 90. A ten-year term to age 80 policy will have 10 years of level premiums and at the end of the 10-year level period the premiums will increase each year until age 80. At age 80, the coverage will end. If the policy does end at the end of the level premium period, then it would be labelled as non-renewable and clearly be shown to end at the end of the level period in your schedule of coverage in your policy papers.


Also, most term life insurance policies have a conversion provision that allows you to convert the policy to a whole life insurance policy without having to apply again or go through underwriting again. This usually has to occur before the level period has past and before you reach a certain age. Age 65 is a common age for conversion options to expire.


You need to carefully read your marketing materials and your policy papers to know exactly how long your premiums are level, how long you have coverage, and how long your conversion privileges last.