When Should I Drop Term Life Insurance? 
When Term insurance enters the annually renewable period , there is no good reason to hang onto it , unless you only have need for coverage for another year , or if you are terminally ill . Those premiums are going to continue to go up every year , so it 's best to bite the bullet and get a new policy now . If your policy has not yet reached the end of the term , you could check to see if you can convert it to a permanent policy . If you are going to pay higher rates soon , anyway , it is far better to pay them for a permanent policy . Converting does not ask any health questions , so can be done with a simple form and is an excellent way to extend coverage if your health has declined since you took out your Term policy . 