When your term life insurance policy expires, you will typically have two options. Either purchase a new policy at a higher premium or forgo having life insurance altogether. But if your insurance policy includes a guaranteed renewal clause, you will be able to extend your coverage on a year-to-year basis. In this case, though, you will have to pay a higher premium. If you have been diagnosed with a terminal illness that would otherwise render you ineligible for health insurance, purchasing this type of coverage may be financially worthwhile.