My Term Life Policy Expires Soon but I Still Need Coverage. What Do I Do?

If the amount of coverage you have right now is appropriate but you know you will need it past the expiration of your current plan, then Dave’s recommendation is to get a new policy now to lock in rates into the future and assure that you don’t lose eligibility (or have to pay a higher price) by waiting, due to a health condition or other issue arising. In some cases, you can keep the existing plan and only buy a smaller amount of coverage for the future if certain risk concerns are alleviated before the expiration of the existing term policy. If your mortgage is paid off, education expenses are no longer an issue, and you’ve increased your savings – these all help reduce one’s need for term life insurance. In that case, keeping an older, less expensive policy until its expiration can reduce your overall costs. But still buy a new plan now for any needs past the old policy’s expiration.

However, if your need for protection is more than the amount you currently have, or extends past the level guaranteed expiration period, then buying an entirely new policy now for the total amount you need, is the most advisable path to avoid high costs in the future.