What to Do If Your Clients’ Term Policy Is About to Expire

Term life insurance is a smart, affordable way to protect loved ones during key years — but what happens when the term ends? Many clients are unprepared for the expiration of their policy. As an advisor, you have the opportunity to educate them on their options and guide them to continued protection.

Why Term Life Policies Expire

Most term policies last 10, 20, or 30 years, designed to cover periods when clients face the greatest financial responsibilities — raising kids, paying off a mortgage, or building retirement savings.

But once the term ends, the policy usually terminates unless it's:

Converted to permanent insurance
Renewed at a much higher rate
Replaced with a new policy

Common Mistakes Clients Make

Ignoring the expiration notice.
Assuming coverage continues automatically.
Waiting too long and facing higher premiums.
Failing to requalify due to health issues.

Your Role: Proactive Education and Planning

As a trusted advisor, your responsibility is to initiate this conversation before the policy ends.

Key Options When a Term Policy Expires

Option 1: Convert to Permanent Insurance

No medical exam required (if done within the conversion window).
Locked-in premiums.
Lifetime coverage.
Builds cash value.

Best for: Clients with ongoing financial responsibilities or estate planning needs.

Option 2: Renew the Term Policy

Premiums increase annually.
No new underwriting required.

Best for: Short-term stopgap while applying for a new policy.

Option 3: Buy a New Term Policy

Lower cost than permanent insurance.
Requires new underwriting.

Best for: Healthy clients who still need term coverage.

Option 4: Consider Alternatives

Return of premium riders.
Final expense insurance.
Hybrid policies (e.g., life + long-term care).

Case Study Example

Client Profile: 50-year-old male with 20-year term ending in 6 months.

Current Status: Mortgage nearly paid, youngest child in college, healthy, but wants to leave a legacy.

Recommended Action: Convert part of the policy to whole life for estate planning + apply for new 10-year term for income protection.

Timeline for Conversations

12 Months Before Expiry: Begin discussions.
6 Months Before Expiry: Conduct underwriting if needed.
3 Months Before Expiry: Make a decision.
1 Month Before Expiry: Confirm application/transition.

Questions to Ask Your Clients

Has your financial situation changed?
Do you still need life insurance?
Are you comfortable with increased premiums?
What legacy do you want to leave behind?