What happens to my 10-year term policy after 10 years?
When your life insurance policy's term of coverage is ended, you have several options. The first and simplest option is simply to let the matter drop: you pay no more premiums, and you have no more coverage.
Alternatively, the option to continue maintain your old term life insurance policy (yes, even after its term of coverage) is commonly available these days. If this option is available, your policy will probably stipulate an 11th year premium (or premium for whatever year follows your term). The new premium will be higher than you were paying before. You may be able to maintain a term life insurance policy of this sort even up to age 90, but your rate will continue to increase, and the rate of increase may not be guaranteed.
Another option, if offered by your insurer, is to renew your coverage. What this means is that you can buy a new term life insurance policy without having to prove your insurability anew. Your new policy's term and face amount will be the same as before, and your rate class will be the same as before as well, so if you were a "preferred plus" for the original policy, you will be a "preferred plus" for the new policy. This does not signify that your rates will be the same as before, however. When you renew a life insurance policy, even though your rate class is the same, your rates will be higher than before because you are older now.
Another option is to convert your expired term insurance policy into a permanent life insurance policy. If you choose to convert, you won't get to pick just any type of permanent policy; you can only choose from the options which your insurer is offering at the time your term policy expires. The conversion options offered at the time you buy your original term life policy may not be the same ones offered later, when your term of coverage is expired. It is industry standard for life insurance companies to offer one or more conversion options.
A final option is to start shopping anew. Look for a new life insurance policy, of any shape or size, and buy the one that best meets your needs.
