Unlike permanent life insurance, term life insurance stays in effect for only a certain period of time—such as 10, 20, or 30 years.♐

If you die during that period, your beneficiary will receive a payout from 🍰the insur🧸ance company. If you die after the policy has expired, there will be no payout.

So what should you do if y𝓡our term expires and you still need life insurance?

Understanding Term Life Insurance

The principal purpose of life insurance is to provide financial support for your dependents should you die prematurely. For example, someone might buy a 30-year term policy at age 40, figuring that by the time they reach 70, their kids will be g♌rown up, out of the house, and self-supporting.

The advantage of term insurance over whole life and other forms of permanent insurance is that it’s cheaper, so the same amount of money can get the policyholder a larger 澳洲幸运5官方开奖结果体彩网:death benefit. The disadvantage is that it eventually expires, at which point the policyholder, now older, may find it difficult to buy another policy.

For many, this is not a problem. However, suppose that our hypo🏅thetical 40-year-old with a 30-year term policy is approaching age 70 and still has dependents. Perhaps one of their children has had unforeseen physical or psychological problems and can’t be self-supporting. Or perhaps the policyholder is now respons🔴ible for supporting a grandchild.

In such cases, the policyholder might want to try to keep some life insuranc❀e. So what exactly are the options?

What to Do If Your Policy Is Expiring

You will have the most options if your policy is still in force and hasn’t reached the end of its term. Ideally, it’s best to make plans at least ༺a year before that point. Here are some steps to✱ consider.

Extend Your Coverage

Many term policies have a guaranteed renewability provision that allows you to keep your insurance in effect after the end of the original term as long as you continue to pay the premiums. While your premiums are likely to rise each year—perhaps considerably— based on your curr༒ent age, you typically won’t have🐓 to submit to a new physical exam.

Some policies allow you to renew on this basis up to age 95.

Convert to a Permanent Policy

Your term policy may also include a provision for 澳洲幸运5官方开奖结果体彩网:converting to a whole life or 澳洲幸运5官方开奖结果体彩网:universal life policy, again without a physical exam. T🅠he new insurance policy could continue for the rest of your life or as long as you need it.

The premium on the new policy will be higher than you have been paying for term insurance. Still, you may have the option of co🐭nverting to a policy with a smaller death benefit in return for a lower premium if that works forꦚ you.

Policies differ in terms of when you can make this switch (there may be age limits). You’ll need to check your policy or contact your insurance company or agent to find out.

Shop Around for a New Policy

If you’re reaching the end of your current term policy, don’t ♉automatically assume that you can’t get a new one because of your age. Some insurers write policies for people up to the age of 80.

You will typically need to have a medical exam, especially if the policy is for over a certain amount, such as $50,000. Some lower-value policies don’t require a physical.

Financial advisors will often recommend you research the available policies for older consumers to find the best term life poli🐼cy.

Combine Several Smaller Policies

If you have health issues that make it difficult for you to buy a sufficiently large term insurance policy, you may 𝔉be able to cobble together a portfo🥃lio of smaller policies that will add to what you need.

These policies may not require a physical exam, but they may ask f🌳or some health information.

In addition to buying one or more small policies through an insurance agent or directly from insurance companies, you could be eligible for 澳洲幸运5官方开奖结果体彩网:group life insurance through your employer, if you’re still working, or through a trade association, college alumni club, or other organization to which you belong.

Buy a Burial Policy

Still another option is 澳洲幸运5官方开奖结果体彩网:final expense or 澳洲幸运5官方开奖结果体彩网:burial insurance. These are typically whole life policies with relatively small pꦏayouts, suc⛄h as $20,000 or $25,000.

They may require no medical exam and—despite their grim name—will provide money that your beneficiaries can use for any purpose.

The Bottom Line

If you have a term life insurance policy that is due to expire in the near future, the first question is whether you still need insurance. If your former dependents no longer rely on your income, 澳洲幸运5官方开奖结果体彩网:you may no longer need it.

However, if you do need insurance, there are several ways to obtain it. 🔯If your health is iffy, your best bet may be to try to extend your current term life policy or convert to a permanent policy with that insurer. If you’re in good health, it may pay to shop around for a new term life policy, which could prove more affordable.