A 20-year term policy bought at 40 ends at 60. The coverage does not vanish that day, but what happens next is expensive if you have not planned for it.
Option one: let it lapse
If the reason for the coverage is gone, the mortgage is paid, the kids are independent, letting it end is a perfectly good answer. Nothing is owed and nothing is refunded.
Option two: keep paying
Most term policies are guaranteed renewable to a stated age, often 95. The catch is the price. The premium resets every year to your current age, and it can jump five to ten times in the first year. It is a bridge for a few months, not a plan.
Option three: convert
Most term policies include a conversion privilege. You can move some or all of the face amount into a permanent policy with the same carrier, with no health questions, at the rate for your age. The deadline is the part people miss. Conversion usually has to happen before a stated age, often 65 or 70, or before the end of the level term, whichever comes first. Check the policy. A decline in health makes this the most valuable clause in the contract.
Option four: buy new coverage
If you are still healthy, a new term or a smaller permanent policy from any carrier is often cheaper than converting. Apply while the old policy is still in force so there is no gap.
A practical sequence
- Two years before the end date, decide how much coverage you still need. Often it is less.
- Get quoted for new coverage at that amount.
- If health has changed, compare the conversion offer instead.
- Put the new policy in force, then let the old one end.
This guide is general information, not advice about a specific policy. Benefits, enrollment rules, and costs vary by state, carrier, and year. Confirm details for your situation with a licensed agent.
