What Happens When Life Insurance Term Expires? 
When a life insurance term expires , a few things can happen , depending on the features of your term policy . Sometimes , the policy will simply end , and you must get new one if you want to have continued coverage . Sometimes , the policy can be extended at a higher price or lower face amount . You will know this when you take the policy out . Another thing that might happen is that the policy is changed from a level term to an annually renewable rate . This rate is much higher than your original premium and goes up every year . 