My Term Life Insurance Is Expiring
If you have term life insurance, it’s designed to end at a specific point. When that date starts approaching, many Canadians find themselves asking the same question:
What happens when my term life insurance expires — and what should I do next?
The good news is that an expiring term policy doesn’t mean you’re out of options. Understanding what typically happens in Canada gives you the space to decide what still makes sense for your life today.
What Happens When a Term Life Policy Reaches the End?
When your term life insurance expires, the original coverage period ends. At that point:
- the policy no longer provides coverage unless action is taken
- premiums you paid don’t carry forward
- the insurer doesn’t automatically reassess your needs
What happens next depends on the options built into your policy and what you choose to do.
Option 1: Let the Policy End
For some people, letting a term policy expire is completely reasonable.
This can make sense if:
- major debts are paid off
- children are financially independent
- income replacement is no longer needed
- coverage was tied to a specific life stage
Not everyone needs life insurance forever. Letting a policy end isn’t a failure — it can simply reflect a change in priorities.
Option 2: Renew the Policy
Most term life policies include a renewal option.
This allows you to:
- continue coverage without medical underwriting
- keep insurance in place for another term (often shorter)
However, renewal premiums are usually significantly higher, because they’re based on your age at renewal and not your original rate.
Renewal can be useful as:
- a short-term bridge
- a temporary solution while reviewing longer-term plans
It’s often not intended as a permanent strategy.
Option 3: Convert to Permanent Life Insurance
Many Canadian term policies include a conversion privilege.
This allows you to convert some or all of your term coverage into permanent insurance:
- without new medical exams
- without new health questions
The cost is based on your age at conversion, not your health.
Conversion is commonly considered when:
- health has changed since the policy was issued
- lifelong coverage is now part of estate planning
- certainty is preferred over re-applying
There are usually age limits and deadlines for conversion, so understanding timing matters.
Option 4: Apply for a New Policy
Another option is to apply for a new life insurance policy.
This may make sense if:
- your health is still good
- your coverage needs have changed
- you want a different term length or structure
- you’re looking for better alignment with your current life stage
New policies require underwriting, but they can sometimes be more cost-effective than renewing an old one.
How to Decide Which Option Fits Best
There’s no universal answer — the right choice depends on:
- current financial responsibilities
- health changes since your policy began
- whether coverage is still needed, and for how long
- estate or legacy considerations
This is one of those moments where clarity matters more than speed. At this stage, many Canadians compare term and whole life insurance before deciding which structure fits their next chapter.
When to Start Reviewing Your Options
It’s usually helpful to start reviewing options:
- 6–12 months before your term expires
- before renewal rates automatically take effect
- while all choices are still available
Early awareness creates flexibility. Waiting until the last moment often limits it.
A Final Thought
An expiring term life policy isn’t a problem — it’s a checkpoint.
It’s an opportunity to reassess what protection still makes sense, what no longer does, and how your life has evolved since the policy began. With a clear understanding of your options, the decision doesn’t have to feel rushed or stressful.
It just becomes another thoughtful step forward.
Reviewing Your Coverage Before It Expires
An expiring policy is a good time to reassess your goals, debts, and long-term protection needs.
If you’d like help reviewing your options before your term ends, you’re welcome to book a conversation below.
👉 Book a Strategy Conversation
Related Guides
• How Term Life Insurance Works in Canada
• Term vs Whole Life Insurance in Canada