When your Term Life Insurance Expires

Ideally, term life insurance policies last as long as your principal obligations like a mortgage. But it doesn’t work out that way sometimes. If your term life policy is expiring, you may still need protection if you still have a mortgage, major debts, dependent children, dependent spouse, and trust money to your heirs. If you belong to one or more of these categories, there are several options to consider.

Get another term life policy.

If you still have obligations, the best option is to buy another term life policy. When you’re older, you might have to pay a higher price but buying a shorter term policy may help reduce the cost.

You can also shop around if you want. Even if you’ve got the best deal from your former insurer before, you can inquire at another insurer for a better life insurance rates this time. Bear in mind that you’ll probably have to take a medical exam during the application process.

Opt for annual renewable term life insurance.

Instead of buying a new term life policy for five or more years, you can choose annual renewable term life insurance, where you decide whether you’d want to continue coverage every year. This option may be a good choice for you if you anticipate more years of financial obligations.

You can also ask your agent if you can extend your current term policy one year at a time. Doing so would avoid a new medical exam. This option is also recommended to those with terminal medical conditions who need life insurance.

Convert your term life insurance to a permanent policy.

While term life insurance works for most people, permanent life insurance certainly has advantages. As the name suggests, a permanent policy lasts for the rest of your life. It has three types: whole, universal, and variable.

You may opt to have your term life policy converted to a permanent policy if you need to. You may typically do so without needing a new medical exam. Your agent may give you the option of converting only a part of it.

Get a new permanent life policy.

If you find that you need to buy a permanent life policy, make sure to shop around and get quotes. Don’t hesitate to approach your agents.

Roper Insurance Services is an independent insurance agency that specializes in providing life insurance to the residents of North Carolina. We offer policies that are tailored according to your needs and budget. You may ask for a free quote from us by clicking here. To discuss your options with our agents, you may call us at (828) 697-6709 or visit us at our office today.​