If your job includes life insurance, that’s a valuable benefit — and for many people, it’s the first coverage they […]
Your 10-year or 20-year term life insurance period is coming to an end. Does that mean your coverage disappears? Do you need to apply again? And will your premiums go up?
Let’s go through the options your existing policy may leave you with — or, if you prefer to plan ahead, what to consider when choosing coverage with future changes in mind. Knowing your options early can make the next step much easier.
When the initial term of your life insurance policy ends, you may have several options depending on your policy terms and your current needs.
You may be able to:
The best option depends on your age, health, budget, current responsibilities and the features of your existing policy.
Some term life insurance policies can be renewed after the original term ends. In many cases, you may be able to continue your coverage without completing a new medical assessment.
The main thing to keep in mind is cost. Renewal premiums are usually higher because they are based on your age at the time of renewal.
Renewing can be a simple and convenient option, especially if your health has changed or declined since you first applied. Still, it is worth comparing the renewal premium with other coverage options before making a decision.
Applying for a new term life insurance policy can give you a fresh coverage term and a new premium period. It can also be a good opportunity to review how much life insurance you still need. Your financial situation may have changed since you first bought your policy — for example, you may have paid down your mortgage, your children may be older, or your income and other financial responsibilities may be different.
Keep in mind that applying for a new policy usually means going through the application process again. Your age, health, smoking status and other personal factors at the time you apply can
affect the premium you are offered and the coverage options available to you.
Some term life insurance policies include a conversion option, which may allow you to switch some or all of your coverage to permanent life insurance.
Depending on the policy, this can sometimes be done without a new medical exam, as long as you convert before the deadline set by the insurer.
Permanent life insurance is designed to stay in place for life, as long as the required premiums are paid. It may be a good option if your needs have changed and you now want coverage that does not end after a set term.
Before converting, check your policy details carefully, including the conversion deadline, available permanent plans and the new premium.
If life insurance no longer fits your needs, it is perfectly okay to let the coverage end.
And if your situation changes later, you may be able to apply for new coverage. Just keep in mind that eligibility, pricing and available options can change with age and health, so check the age limits for any plan you may want to consider in the future.
It is a good idea to review your options before your current term ends. Giving yourself some extra time makes it easier to compare renewal costs, explore new coverage, or use a conversion option if your policy includes one.
A little planning ahead can make the transition much smoother.
Not sure what to do when your term ends? Speak with a licensed advisor to review your options.
Your coverage needs may have changed since you first bought your policy. Your mortgage may be smaller, your children may be financially independent, or your income and debts may look very different today.
This is a good time to reassess how much life insurance you actually need. Our Calculator can help you estimate an appropriate coverage amount quickly and easily based on your current
financial situation.
A quick review can help you avoid paying for more coverage than you need — or make sure you are not leaving yourself underinsured.
Can I renew term life insurance without answering health questions?
Some term life insurance policies allow you to renew without a new medical exam or health questionnaire. Renewal premiums are usually higher, so it is worth comparing your options before deciding
Will my term life insurance premium increase when I renew?
In most cases, yes. Term life insurance premiums are usually fixed during the original term, but the cost typically increases when the policy renews. The new premium reflects your older age, health situation, and the renewal rates set out in your policy.
Before renewing, it can be worth comparing the renewal price with the cost of applying for a new term life insurance policy.
Will I pay the same premium if I get a new term life insurance policy?
Not necessarily. The premium for a new term life insurance policy is based on your age, health, coverage amount and other factors at the time you apply.
Because you are older than when you bought your previous policy, the premium may be higher. That said, a new policy can sometimes offer better value than simply renewing your existing one, especially if your health or lifestyle has improved.
When your term life insurance ends, you may renew your current policy, apply for new coverage, convert to permanent insurance, or adjust your coverage to better fit your needs today.
The right choice depends on your situation.
Ready to see what coverage may work for you? Get a quote today.
If your job includes life insurance, that’s a valuable benefit — and for many people, it’s the first coverage they […]
A stay-at-home parent may not bring home a regular paycheque, but the work they do every day has real value. […]
Shortly — yes. In many cases, you can apply for life insurance in Canada without leaving home. You can request […]
