Search
Insurance

Your Term Life Policy Is Ending: Convert, Renew or Walk Away?

Rows of wooden file drawers, with a sticky note reading “Convert or renew?”.
Photo by Jan Antonin Kolar on Unsplash

Plenty of 20-year term policies bought in 2006 or 2007 are reaching the end of their level premium now. Usually the coverage doesn't stop. The locked-in price does, and in one actuarial study of 10-year policies the first renewal bill averaged 7.4 times the old premium. Most of those owners let the policy go that year. Some still needed coverage and never found out about a second date in the contract.

See the five options and their costs

Continues on the next page · opens in a new tab

By Margaret Linwood · Updated Sep 29, 2026 · Reviewed against NAIC, Society of Actuaries

Also worth reading

White lilies in bloom against green leaves, with a sticky note reading “Who pays $8,300?”. Insurance A woman's $10,000 burial policy costs $33 at 60, $98 at 80 An insurance policy document under a magnifying glass, with a sticky note reading “No medical exam?”. Insurance The same term life policy costs double at 65 versus 55

Why so steep? During the level period, the insurer spread the risk across 20 or 30 years. When the term ends, so does the averaging. Healthy owners tend to leave for a new policy somewhere else, and renewal rates are set with the people who stay in mind.

The first renewal bill isn't the last increase, either. On a yearly schedule the premium goes up at every policy anniversary. And the insurer's notice may show up only a month or two ahead, which is late to start shopping if a new policy needs an exam.

See the steps to start six months out

Continues on the next page · opens in a new tab

What to have in front of you before you call

The insurer can answer most questions in one call. It goes faster, and you'll catch more, with the paperwork already on the table.

  1. The schedule pages. Most policies have a table of guaranteed renewal premiums for every year after the level term, usually near the front. That's your real number, not an estimate.
  2. The exact day. The level term ends on a policy anniversary. Write down the date, not just the year.
  3. A duplicate, if the policy's gone missing. The insurer can send one, along with an in-force summary, a statement of your current coverage and premium.
  4. The household math. Look at the mortgage balance and the years until retirement. A household generally keeps only the larger of two Social Security checks, so count that too. You may need less coverage than you first bought.

With those in hand, the next questions are the second date in the contract and which of five routes fits. The article takes them in that order, with prices.

See the two dates that matter

Continues on the next page · opens in a new tab

Also on this topic

A hand signing a document with a fountain pen, with a sticky note reading “Sell it?”. Insurance Before you drop a life insurance policy, ask what a buyer pays A stethoscope, a reflex hammer and a blood pressure cuff on a white surface, with a sticky note reading “$63,840?”. Insurance Your 2027 subsidy stops at $63,840. Here's how the line is drawn Two steaming mugs on a small wooden table, with a sticky note reading “Covered at 62?”. Insurance Your spouse goes on Medicare. You're 62. Where your coverage comes from An older person's folded hands resting on blue fabric, with a sticky note reading “Pay more?”. Insurance Your long-term care premium went up. Compare the options in the letter A red envelope on a yellow background, with a sticky note reading “Plan G +26%?”. Medicare Your Plan G premium jumped again. Check your state's switching window A weathered metal mailbox with a red flag, with a sticky note reading “After 20 years?”. Insurance Your nonrenewal letter has two dates. Count the days between them

Up next on this topic

Picked to go with this article. Each one opens in a new tab.

A dirt path splitting in two through a green forest, with a sticky note reading “Hard to undo?”. Medicare You can leave Medigap any fall. Coming back is a different story A desk calendar showing December 30 and 31 with an orange highlighter, with a sticky note reading “Ends Dec. 31?”. Medicare If your Medicare Advantage plan ends, you get a 63-day Medigap right Letter tiles spelling MORTGAGE on a wooden table, with a sticky note reading “+$325?”. Home & Mortgage Your fixed-rate payment has two parts that are not fixed at all An orange rotary phone on a wooden table, with a sticky note reading “Code word?”. Debt & Credit The one question to ask when a grandchild calls needing money A hand signing a paper with a pen, with a sticky note reading “Bills: $6,300”. Insurance The adjuster wants to record your call. What you can say Colorful pills spilling from an orange prescription bottle on a blue background, with a sticky note reading “+$300?”. Medicare Your Part D deductible can reach $700 in January. Check this line A blank sheet of paper and a pen on a kitchen counter, with a sticky note reading “$75?”. Medicare Your 2027 raise is 3.6%. See what Part B leaves A white house and fir trees covered in snow, with a sticky note reading “Heat bill up?”. Home & Mortgage This winter's heating bill forecast: gas down 9%, oil up 21% A blank sheet on a black clipboard with a yellow pencil on a wooden desk, with a sticky note reading “7 checks?”. Medicare Your Medicare plan can change January 1. Seven checks, in order A stack of U.S. quarters on a white surface, with a sticky note reading “$202.90 a month?”. Medicare Your state may pay your Part B premium. Check one income line Two hands holding a blank white card over a dark wooden table, with a sticky note reading “65 days”. Medicare Your plan said no. Most appeals filed were at least partly reversed Rows of electric meters on a wall, with a sticky note reading “Same usage?”. Home & Mortgage Divide your electric bill by the kilowatt-hours. Compare it with last year