Is your term life insurance about to expire? Are you prepared for what comes next? It's wise to have a plan in place before your policy expires to ensure that you and your family and/or loved ones remain protected.

We'll explore the options available to you and help you make an informed decision for your life insurance cover. Don't wait until it's too late - take action now to secure your future.

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What happens when your term life insurance expires?

Term life insurance provides cover for a set period of time, typically between 5-50 years. This is agreed upon when you purchase the policy. 

Once that term is up, your cover will expire. At this point, you will no longer have life insurance protection unless you choose to take out another policy. Another option is to extend your policy.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

Will I still need cover?

That's the big question. After all, your circumstances may have changed since you originally took out your policy. You may have paid off your mortgage, your children may be financially independent, or your situation may have improved.

However, it's important to consider the potential risks that lie ahead. There’s still expenses that may arise in the event of your death, such as funeral costs and outstanding debts.

If you have dependants who rely on your income, it's crucial to ensure they have financial protection if anything happens to you.

If you are facing financial difficulties and can no longer afford your premiums, please contact your insurer as soon as possible to stop the plan from lapsing automatically. They may have a scheme that allows you to keep the cover.

Can I extend my term life insurance?

This will depend on the insurer you have and the type of policy you purchased. Please be aware that you may also  be required to go through the underwriting process again. This means you will need to provide updated health information and may be subject to a new medical examination. Extending your policy may also result in an increase in premiums.

Please contact your insurer to see if this option is available to you.

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Can I convert my policy into a permanent one?

Converting your term policy to a permanent one maybe a wise decision if you want lifelong cover. Or if you want to avoid having to go through another medical exam. By converting, you ensure that as long as you keep up with premium payments, you will have cover for the rest of your life.

However, not all insurers will allow you to do this. Some may limit your options to specific types such as whole life. Others may charge higher premiums for the converted policy. Consult with your insurer to understand their specific conversion options and any associated costs.

What are my other options?

If extending or converting your term policy is not an option, there are alternatives to consider:

  1. Purchase a new policy:  This option allows you to start another term of cover for a specified period. It will require going through the underwriting process again, and premiums may be higher based on your age and health.

2. Look into permanent life insurance: Policies, such as whole life insurance, can provide cover for the remainder of your life. However, these policies tend to have higher premiums compared to term life insurance due to the lifelong cover they provide.

3. Evaluate your financial situation: If you no longer have dependents or obligations, you may decide you no longer need cover. Take a thorough look at your financial situation and determine if life insurance is still a priority.

4. Speak to an adviser: If you're unsure about what to do when your policy ends, it's always a good idea to get advice. Our team of advisers can help guide you through the process and provide advice based on your specific needs and goals. Speak to us today for advice.

At Cavendish Online, when you buy with one of our advisers, we’ll automatically place you on an annual review scheme. We’ll get in touch every year to check that your policy is still adequate, and look into alternatives if it’s not.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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