Term insurance is a smart and affordable way to get life coverage for a fixed duration or term, generally 10-30 years. It is often seen as a cheaper alternative to life insurance and is mostly preferred by people in their 20s and 30s when they have financial obligations such as raising children or a home loan.

But what if you still need life coverage after the expiry of your term insurance? Can the tenure be extended? There is no single word answer for this query. Let us have a look at how the expiry of term plan works to try and get some clarity.

Expiry of Term Plans

To start with, it is a common misconception that a term policy has an ‘expiry’. Most of them do not expire until you are 90-95 years old. At the end of the policy term what happens is that the initial term period level ends. This means that the low premium that you have been paying for the policy ends.

Even after the end of the term, say 10-20 years, you can continue paying annual premiums for the policy and keep it valid until the age of 90-95. However, there is a significant drawback in this- the annual premium after the end of the term will rise significantly with every passing year.

So, Can I Extend a Term Policy or Not?

Technically, you cannot extend the term policy in most of the cases. But in case you still need life coverage after the policy tenure ends, you can keep paying annual premiums for the same.

What are the Other Options?

If you do not want to pay the high annual premiums, there are a few things that you can do. Let us have a look at some of the solutions-
  • Purchase a new term plan
  • Convert the term plan into a life insurance
  • Go for a new life insurance

When Does Paying Annual Premiums Make Sense?

There are also a few instances when paying higher annual premiums after the end of a term plan makes sense. For example, if you only need coverage for 2-3 years after the end of the current term for some reason, you can continue paying annual premiums.

Also, if you are above 65-70 and not eligible for a new life or term insurance, you can continue your existing policy by paying annual premiums.

Take Professional Help If You Cannot Decide

If you still cannot decide, you can get in touch with your insurance provider for discussing your query. The insurance provider will mostly assign an advisor to help you make the right decision.

Click here to know more about Term Insurance Plan.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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