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What happens when term life insurance expires?
Published: 2026-05-12
Term life insurance is different from other life insurance products as coverage is temporary. With term life insurance, you select the number of years that you want coverage for. For example, a 10, 20, or 30-year term. When your term life insurance reaches the end of its term, your initial coverage period expires. You may have several different options to consider when your term life insurance term expires.
Options you may have when the term on your life insurance expires or is nearing its expiration¹
1. Automatic renewal:
Most life insurance companies, including TD Insurance, offer automatic renewal at the expiry of each policy term2. This means your coverage renews for another term. When your policy renews, your coverage does not change. However, your premiums will increase to reflect your age at the time of renewal. That said, if your health has declined over your initial term, guaranteed renewability is a great option because you can simply allow your existing policy to renew and pay your new premiums going forward.
2. Policy conversion:
You may have the option to convert your coverage to a permanent life insurance plan. Most insurers allow you to convert your term life insurance policy to a permanent life insurance plan as long as you are within the conversion age limit. With TD Insurance, you may have the option to convert 10-year, 20-year, or 30-year term plans3.
Note: Converting your term life insurance policy to a permanent life insurance policy isn't necessarily restricted to your policy's renewal period. Some policies allow you to convert at any time. Consult your term life insurance provider to learn about your policy's conversion features and conversion period.
3. Policy replacement:
If you are still in good health when your term life insurance term is about to expire, it could be a good idea to consider a new policy. It may be more affordable to purchase a new policy then to renew your existing coverage.
Contact a licensed insurance provider to review your coverage options:
It's important to review your coverage options with a licensed insurance advisor before you cancel your policy. If you decide that you need coverage again in the future, an advisor can help you understand if you will qualify for coverage and how much it will cost.
Determining which option is best for you
When your term is set to expire, deciding what to do next when it comes to your coverage depends on your current situation and your life going forward. Be sure to consider your financial obligations, future goals, and overall health.
Health:
Has your health changed since you originally purchased coverage? If your health has declined, it could be difficult to apply for new coverage. In this scenario, continuing with your existing coverage or converting your coverage to a permanent life insurance plan may make the most sense.
Financial obligations and future goals:
Do you have people who still require your financial support? Or maybe you're thinking about buying a new home? Are you getting your kids ready to head to college or university? Perhaps you're starting to plan for your retirement? Depending on your life circumstances, it's important that you consider your coverage options. So, be sure to look into renewing, converting, or replacing your policy.
Interested in a TD Term Life Insurance plan?
Start by learning all about the term life insurance plan options available to you.
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Need further help deciding on what steps to take when the term on your life insurance policy is approaching its renewal date? Speak with a TD Life Insurance licensed advisor.
Frequently Asked Questions
Is my term life insurance policy renewed at the expiry of each term?
Term life insurance policies typically auto-renew at the completion of each term period up until the policy's expiry date. For example, let's say you have a TD Insurance 10-Year Term Life plan. Your plan will be renewed every 10 years, until it eventually expires. The final renewal period will only run until the insured person’s 80th birthday, at which point the policy will expire.
What is term life insurance?
Term life insurance is a common type of life insurance that offers coverage until the age stipulated in the insurance policy.
When you apply for term life insurance, you select the term length and coverage amount that best fits your needs. Term length options can vary by insurance provider. During your term, your premiums (the payments you make to keep your coverage in place) remain fixed and do not change until your term renewal period. At which point, your premiums will increase to reflect your age at the time of renewal.
TD Insurance offers four Term Life Insurance plan options: 10-Year, 20-Year, 30-Year4 and Term 100 Lifetime Coverage. And with TD Insurance, you can apply for between $25,000 all the way up to $10 million in coverage.
Like all term life insurance policies, the term life insurance policy will payout a tax-free death benefit to the beneficiary or beneficiaries upon the death of the insured person.
1 The first three points outlined below in this section apply only to individuals who meet the applicable eligibility requirements for coverage.
2 Auto-renewal is subject to the insured meeting the appliable age eligibility requirements at the time of renewal.
3 This option is available up to 6 months after the Insured's 69th birthday, and premiums will be based on the Insured person’s attained age at the conversion date.
4 TD 10- or 20-Year Term Life Insurance plans automatically renew at the end of each of 10- or 20-year term until the age of 80. TD 30-Year Term Life Insurance plan automatically renews at the end of the initial 30-year term on a yearly basis until the age of 80. Premiums do not increase for the duration of the policy's term. The premium will increase when your term renews.
TD Term Life Insurance plans are individual life insurance plans underwritten by TD Life Insurance Company. Some restrictions may apply. Application subject to approval. See Insurance Policy(ies) for coverage details, including limitations and exclusions.
The content on this page is for general information purposes only and does not constitute legal, financial or insurance advice. Speak to a TD Life Insurance licensed professional advisor regarding your specific situation. The information contained herein, is subject to change without notice.