Term Life Insurance Expiring? Here Are 7 Smart Options to Consider

Pep Dekker • October 17, 2024

7 Options When Your Term Life Insurance Is About to Expire


Term life insurance is a great way to get affordable coverage for a set period, usually 10, 20, or 30 years. But what happens when that term is about to end? The clock is ticking, and it's important to know your options before your policy expires. If you let your coverage lapse without making a plan, your loved ones could be left unprotected just when they need it most. Whether you still need coverage, want to explore new options, or are wondering if you even need life insurance anymore, it’s crucial to understand what steps you can take. By planning ahead, you can make sure your family remains secure and avoid unnecessary stress or financial hardship. Here are seven things you can do when your term life insurance is coming to an end.


Term life insurance might seem straightforward when you first buy it, but as the expiration date approaches, things can get complicated. Your needs may have changed—maybe you’ve paid off your mortgage, maybe your kids are financially independent, or perhaps your financial responsibilities have increased unexpectedly. This is why it’s important to reassess your situation now. It’s not just about renewing or letting it lapse; it’s about making an informed decision that best fits your current and future needs. Let’s dive into these seven options, each with its own pros and cons, to help you make the most informed decision possible.


1. Convert to a Permanent Policy

Most term life insurance policies have a conversion option that lets you switch to a permanent policy, like whole life or universal life, without needing to reapply or go through another medical exam. This is a good choice if you still need coverage but want something that lasts for the rest of your life. Permanent policies also build cash value over time, which can be useful down the road. Unlike term insurance, which only provides coverage for a set period, permanent policies offer lifelong protection and the ability to accumulate cash that can be borrowed against if needed. For more information on life insurance conversions, check out this guide from NerdWallet.


Permanent policies like whole life or universal life can also provide a source of savings or even emergency funds. This type of insurance can be more expensive, but the peace of mind it provides can be worth the cost, especially if you are concerned about long-term security for your family. Many people like the idea of having both insurance protection and a savings element rolled into one product.


2. Renew Your Term Policy

Another option is to renew your term life insurance policy. Many insurers let you extend your policy year-by-year after the initial term expires. Keep in mind, though, that renewing can be expensive because premiums increase as you age. It’s not always the most affordable option, but it can provide temporary coverage while you figure out a long-term plan. Renewing is ideal if you need a short-term safety net while sorting out more permanent coverage solutions. Learn more about renewing term life policies from Investopedia.


Renewing a term policy might be particularly helpful if your health has declined, and getting a new policy would mean sky-high premiums or even being denied coverage. The biggest downside is the cost, as insurers raise rates significantly for older policyholders. However, it can still be a useful way to keep coverage in place, even if just for a few more years.


3. Buy a New Term Policy

If you’re still in good health, buying a new term life insurance policy might be a better option. You’ll have to go through the application process again, including a medical exam, but this could result in a more affordable premium compared to renewing your current policy. This is especially true if you’re younger and in good shape. If you want to compare new term policies, Policygenius is a great place to start.


Buying a new term policy allows you to reset the clock and lock in new, possibly lower rates if you are still in good health. It’s a fresh start with coverage that can last for another decade or more, depending on the term you choose. However, if you’re significantly older than when you first applied, you might find the premiums have increased more than you’d like. Still, it’s an option worth considering, especially if you need more years of coverage for dependents or outstanding debts.

How much life insurance do I need?

To make it easier, we created an online life insurance calculator you can use to help assess your individual needs.

4. Opt for a Decreasing Term Policy

A decreasing term policy is a type of life insurance where the coverage amount decreases over time, often alongside a debt like a mortgage. This is a cost-effective option if your financial responsibilities are going down, and you still want some protection in place. It's often cheaper because the death benefit reduces as you pay down your debts. For more details on decreasing term insurance, see this explanation from The Balance.


Decreasing term insurance is often recommended for those who have a specific, shrinking financial responsibility, like a mortgage or a large loan. The policy runs alongside the debt, ensuring that if anything happens to you, the remaining amount is covered. Since the payout decreases over time, the premiums are typically lower, making it a more affordable choice for those whose needs are reducing.


5. Get a Permanent Policy for Final Expenses

If your main concern is covering end-of-life expenses, like funeral costs, you could buy a small permanent life insurance policy. These policies, sometimes called final expense or burial insurance, provide just enough coverage to ease the burden on your family. They’re more affordable than larger permanent policies and can offer peace of mind. Final expense insurance is a great way to ensure that your loved ones aren’t left with a financial burden during a difficult time. Forbes has a good overview of final expense insurance.


Final expense policies are typically easy to qualify for, even if you have some health issues, and they ensure that your family can handle end-of-life costs without dipping into their savings. Though not a large policy, it can be a practical solution for those whose main goal is to make sure their loved ones aren’t saddled with expenses like funeral costs, medical bills, or outstanding debts.


6. Let the Policy Expire

Sometimes, the best option is to let your term life insurance policy expire. If you no longer have financial dependents or significant debts, you might not need life insurance at all. Letting it expire without renewal can save you money in premiums, which you can use elsewhere. However, make sure you’re truly in a position where no one relies on your income or financial support before choosing this option.


Letting your policy expire is a reasonable option if your financial obligations have decreased significantly. For example, if your children are financially independent and you’ve paid off your mortgage, you might not need life insurance anymore. However, it’s crucial to assess your situation carefully before deciding to let coverage lapse entirely. Make sure you’ve considered any lingering responsibilities or expenses that might still affect your family.


7. Ladder Multiple Policies

Laddering life insurance involves buying several smaller-term policies that expire at different times. This strategy can help you save on premiums by reducing coverage as your financial needs decrease. For example, you might buy a 30-year policy, a 20-year policy, and a 10-year policy all at once, which gives you more coverage during the years you need it most, like when your children are young, and gradually reduces over time.


Laddering policies can be an efficient way to ensure you’re not paying for more coverage than you need at any point in time. This approach allows you to adjust your life insurance to match your financial responsibilities—more coverage when you have young kids and a mortgage, and less coverage as those responsibilities decrease. It’s a flexible way to manage costs while still making sure you’re covered during the critical periods of your life.


Conclusion: Make a Plan Before It Expires

When your term life insurance is about to expire, it’s easy to feel overwhelmed by the choices. But taking the time to plan ahead can make a big difference in ensuring your family remains financially secure. Start by assessing your current financial situation, considering how much protection your loved ones still need, and evaluating each of the options available to you. Whether it’s converting to a permanent policy, buying a new term, or simply letting your policy expire, being proactive means you’re taking control of your family’s future.



Remember, life insurance isn’t just about money—it’s about peace of mind, knowing that your loved ones are protected no matter what. Taking action now, before your term ends, gives you more choices and potentially lower costs. Don’t let your policy lapse without thinking through the consequences and understanding your needs. Make your plan today, so you can rest easy tomorrow. The sooner you make a decision, the sooner you can ensure your family's financial security for the future.


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Life insurance for newlyweds: an essential addition to your post-marriage finances

By Pep Dekker • October 29, 2024
Newlyweds, Protect Your Future Together: Why Life Insurance Matters After 'I Do' Marriage is a rollercoaster of love, excitement, and big dreams. You’ve said “I do,” danced the night away, and maybe even enjoyed that dreamy honeymoon where everything felt perfect. But reality hits once you unpack those bags—building a life together also means getting real about money and responsibility. But now that the wedding bells have quieted and the confetti has settled, it’s time to tackle some of those practical aspects of building a life together. One of the most important financial steps you can take as newlyweds is to think about how to protect each other, come what may. Okay, so life insurance doesn’t exactly scream romance. It’s not as glamorous as a weekend getaway or an anniversary surprise. But you know what's genuinely romantic? Making sure your love story is bulletproof, even when life throws its worst at you. It’s about showing your partner that, no matter what happens, you’ve got their back. Life insurance is more than paperwork—it’s a way of saying, 'I love you enough to protect our dreams, no matter what.' It’s about ensuring your financial plans don’t crumble when the unexpected happens. Here’s why life insurance should be an essential part of your post-marriage finances and how to get started. For more details on life insurance, check out The Balance's life insurance guide . For more information on life insurance basics, visit NerdWallet's guide . As newlyweds, you’re building a life together, which means making sure your partner is protected, no matter what. One of the most important steps you can take for your new family’s financial future is buying life insurance. Here’s why life insurance should be an essential part of your post-marriage finances and how to get started. 1. Protecting Your Spouse When you get married, you and your spouse become each other's primary financial support system. Whether you're both working, one partner is a stay-at-home spouse, or you’re planning to start a family soon, life insurance provides financial security if one of you is no longer there. Imagine losing not just your partner but also their income or the ability to cover day-to-day expenses. Life insurance ensures your spouse can maintain their lifestyle and cover expenses like rent or mortgage payments, bills, and even future costs like education. For example, if you’re both contributing to a mortgage, having life insurance means that if something happens to one of you, the surviving partner won’t have to worry about making those payments alone. Life insurance gives you peace of mind, knowing that your spouse will be financially taken care of, no matter what happens. 2. Covering Debts Together Marriage often means combining finances, and that includes debts. Whether it’s student loans, credit cards, or a mortgage, taking on debt together means you both have a shared responsibility. If one of you were to pass away, those debts don’t just disappear—they become the responsibility of the surviving partner. Life insurance can help ensure that those debts are covered, so your spouse isn’t left with a financial burden they can’t handle on their own. Term life insurance is often a good choice for newlyweds because it provides affordable coverage during the years when debt is typically at its highest. To learn more about term life insurance, see this overview from Life Happens . To learn more about term life insurance, check out Investopedia's explanation . For example, if you have a 30-year mortgage, a 30-year term life insurance policy can be an excellent way to make sure that debt is covered if something unexpected happens. 3. Planning for the Future Many newlyweds have big dreams for their future—buying a house, starting a family, traveling the world, or building a business. Life insurance plays a key role in ensuring those dreams can still happen, even if life throws you a curveball. It’s not just about covering immediate expenses; it’s also about giving your partner the ability to continue working toward the future you both envisioned. If you plan to start a family, life insurance becomes even more important. It helps ensure that your children will be provided for, even if one parent is no longer there to contribute financially. By planning ahead now, you can make sure that the life you’re building together stays on track, no matter what. 4. Term vs. Whole Life Insurance There are two main types of life insurance that newlyweds should consider: term life insurance and whole life insurance. Term Life Insurance: This type of insurance covers you for a specific period, like 10, 20, or 30 years. It’s typically more affordable and provides the financial protection you need during the years when your responsibilities—like debts and raising a family—are at their peak. Term life insurance is often the best choice for newlyweds because it offers high coverage at a lower cost, making it easier to fit into your budget. Whole Life Insurance: Whole life insurance provides lifelong coverage and includes a savings component that builds cash value over time. While it’s more expensive than term life insurance, it can be a good option if you’re looking for coverage that lasts forever and a way to build financial assets. Whole life policies can also be used as a financial planning tool, but they may not be necessary for every couple, especially when just starting out. 5. Budgeting for Life Insurance As newlyweds, you’re probably trying to balance a lot of financial priorities—saving for a home, paying off debts, and maybe even setting aside money for future children. Life insurance might feel like an extra expense, but it’s actually one of the most important investments you can make in your future. The good news is that life insurance is often more affordable than people think, especially if you’re young and healthy. Start by determining how much coverage you need. A common rule of thumb is to get a policy that’s worth 10 times your annual income. Then, shop around and compare quotes from multiple insurers to find the best rates. There are many online tools that can help you get started, such as Bankrate's life insurance comparison tool , and locking in a policy while you’re young will save you money in the long run. 6. Working with a Financial Advisor If you’re unsure about how much life insurance you need or what type of policy is best, consider working with a financial advisor. An advisor can help you assess your financial situation, understand your options, and make sure you’re getting the right coverage for your new life together. They can also help you understand how life insurance fits into your broader financial plan and ensure that you’re making the best choices for your family’s future. Conclusion: Building a Secure Future Together Marriage isn’t just combining last names or sharing a Netflix account—it’s about creating a future where both of you feel safe and secure, regardless of what life hurls in your direction. While life insurance might not be something you discuss over a romantic dinner, it’s one of the best ways to protect your partner and show just how committed you are to their well-being. Think of it as another promise you make to each other: that you’ll do everything in your power to keep each other safe, even in the face of life’s uncertainties.  By making life insurance part of your financial plan, you’re not just covering debts or future expenses—you’re ensuring that the dreams you’re building together today have the best possible chance of coming true, no matter what. So, take the leap, explore your options, and secure your happily ever after by making life insurance a key part of your financial foundation. Your future selves—and your partner—will thank you. Life insurance is an essential part of post-marriage finances that helps provide stability, cover debts, and keep your dreams alive even in the face of unexpected events. By choosing the right coverage and planning ahead, you can give each other the ultimate gift: peace of mind. Start exploring your options today, and make life insurance a key part of your financial foundation as newlyweds.
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Life Insurance for Self-Employed & Freelancers

By Pep Dekker • October 29, 2024
Life Insurance for Self-Employed & Freelancers If you're self-employed or a freelancer, you already know how important it is to protect yourself and your family. You’ve worked hard to build your business from the ground up, and your income depends entirely on your ability to show up and get the job done. Unlike traditional employees, you don’t have access to employer-provided benefits like life insurance or paid leave. Everything—from generating income to planning for the unexpected—falls squarely on your shoulders. So, what happens if you’re suddenly not around to bring in that income? It’s a sobering thought, but one that freelancers and self-employed folks need to confront head-on. Life insurance isn’t just another financial product—it’s a way to make sure your loved ones are financially protected no matter what happens. Whether it’s covering your mortgage, keeping your kids’ college dreams alive, or making sure your family can maintain their quality of life, life insurance is your way of ensuring they’re taken care of if you’re not there to do it yourself. Let’s dig into why life insurance is non-negotiable for freelancers and what options are out there. For more information on why freelancers need life insurance, check out this article on NerdWallet. You don't have the benefits that traditional employees might get, like employer-sponsored life insurance, so it's on you to make sure you're covered. Let’s dig into why life insurance is non-negotiable for freelancers and what options are out there. For more information on why freelancers need life insurance, check out this article on NerdWallet . 1. Why Life Insurance Is Important for Freelancers When you’re self-employed, your income is unpredictable. One month you’re flush, the next you’re hustling just to cover the bills. Life insurance is what keeps your loved ones afloat if you’re not there to do it. It means they won't be stuck with your debts or left without income. Since you're responsible for everything—from bringing in cash to managing expenses—having a financial safety net is the smart move. If you have dependents, like children or a spouse, life insurance is even more crucial. Without a steady paycheck or group benefits, your family would be left to manage all the bills alone. Life insurance helps cover living expenses, debts, and future costs like your kids’ education. It’s about protecting the people who rely on you. 2. Types of Life Insurance Available There are two main types of life insurance to consider: term life insurance and whole life insurance. Term Life Insurance: This type of insurance covers you for a set period, like 10, 20, or 30 years. It’s straightforward and affordable—if you pass away during the term, your loved ones get a payout. For freelancers, term life is usually a great choice because it gives you coverage without a huge financial commitment. Whole Life Insurance: Whole life insurance covers you for your entire life and includes a savings component that builds cash value over time. For more details on term vs. whole life insurance, see this guide on Investopedia . It’s more expensive, but it could be a good option if you want lifelong coverage and a way to save that you can borrow against. But honestly, if you’re on a tight budget, the high premiums may not make sense. 3. How Much Coverage Do You Need? Figuring out how much coverage you need can be tricky, but here’s a good rule: get enough to replace your income for at least 10 years. Also think about your debts, like a mortgage or student loans, and future expenses, like your kids’ education. The goal is to make sure your family doesn’t face financial hardship if you’re not there to support them. For example, if you earn $50,000 a year, consider getting at least $500,000 in coverage. That way, your loved ones will have enough to cover their expenses and maintain their quality of life while they adjust. 4. Choosing the Right Policy When choosing a life insurance policy, make sure to compare quotes from different providers. There are plenty of online tools that make comparing rates easy. Look for a policy that fits your needs without draining your bank account. If your income isn’t steady, a term policy with a lower premium might be the way to go so you can keep coverage even during lean months. It’s also worth working with an insurance agent or financial advisor who gets the freelance life. They can help you find a policy that makes sense for your situation and answer any questions you have. 5. What About Business Expenses? A common question freelancers ask is whether life insurance premiums can be deducted as a business expense. In most cases, the answer is no. Life insurance premiums are typically considered a personal expense unless the policy is directly related to your business—like key person insurance. So, you’ll need to budget for premiums as part of your personal expenses. Conclusion: Protecting Yourself and Your Family Life insurance is a key part of financial planning for freelancers and self-employed people. It also provides stability and peace of mind for your dependents, ensuring they are financially protected if something happens to you. It ensures your loved ones are protected if something happens to you. Without the safety net of employer-sponsored benefits, it’s on you to find the right coverage.  Think about your budget, the type of policy that makes the most sense, and how much coverage will provide real peace of mind for your family. Don’t wait—taking action now can make all the difference later.
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