Your term policy ends at 70: convert, renew, replace or let go

Many people who bought a 30-year term policy in their forties reach its last year in their late sixties or at 70, and the letter from the insurer arrives with a surprising number on it. At that point there are four realistic choices: convert the policy to permanent coverage, renew it at the new annual rates, replace it with a different policy, or let it end. The best path depends first on whether anyone still needs the money, and only second on price. This post works through the questions in a sensible order, using an invented household, and finishes with a decision list.

It is general information. Your contract controls the dates and prices, and an independent agent, a fee-only planner or your state insurance department can help with specifics.

Start with the question that decides everything: is the need still there?

Term insurance is bought to cover a need with an end date: raising children, paying off a mortgage, replacing income until retirement savings are large enough. At 70, those needs have usually faded. But some persist or appear:

• A spouse who relies on a pension that stops at your death. Single-life pension payouts end at death, and Social Security survivor benefits replace only part of the lost household income.
• A dependent who will need lifelong support, such as an adult child with a disability.
• A debt that is still outstanding, such as a mortgage taken late or a business loan you guaranteed.
• An estate that will owe tax or needs cash. The federal estate tax basic exclusion is $15,000,000 per person in 2026, so most households are well under it, but a few states tax smaller estates. The guide on state estate and inheritance taxes and life insurance explains how to check.
• A wish to leave a legacy. This is legitimate but it is a preference, not a need, and it can be met in other ways.

Say Frank, 70, is nearing the end of a $300,000 30-year term policy he bought at 40. His level premium is $70 a month, which is $840 a year. His wife Linda is 67. Frank has a pension that pays $2,200 a month while he lives, but only $1,000 a month to Linda if he dies first (the numbers are invented). Their expenses are $4,000 a month, and Social Security and savings cover most of the rest.

If Frank dies, Linda's pension income falls by $2,200 - $1,000 = $1,200 a month, and the household also loses the smaller of the two Social Security checks. Say, after counting both, the monthly gap is $1,800, or $21,600 a year. A $300,000 benefit would cover about $300,000 / $21,600 = 13.9 years of that gap. That is a real need, and it gives Frank a reason to keep thinking.

If, instead, the couple had enough savings and survivor income that Linda would be comfortable, the right answer might be to let the policy end. The How much life insurance do I need? helps test that, and the odds of outliving your term shows the odds that someone of a given age survives a stated number of years, useful context for sizing a short bridge.

Check the conversion window now

If the need exists and you may not be insurable at a good price, the conversion privilege is the most valuable thing the policy contains. It lets you exchange all or part of the term policy for a permanent policy from the same insurer without a medical exam, at your original health rating.

The catch is the deadline. Conversion windows often end before the level premium period does, and some end at a stated age such as 65 or 70, or a number of years after issue. Policies that offer a long window sometimes shorten it for the last years. So the first action for Frank is to read his contract and ask the insurer for the conversion deadline in writing. If the window has already closed, the option is gone, and he can skip to renewal and replacement.

If it is still open, the price matters. A permanent policy is priced for your attained age, so converting at 70 is far more expensive than at 55. A $30-a-month term policy can turn into a premium of hundreds of dollars a month for the same face amount at that age. That is why many people convert only part of the face amount. Frank could ask what a $100,000 conversion would cost, or whether a guaranteed universal life policy, which gives lifelong coverage with little or no cash value, is among the permitted products. The details are in converting term life to permanent: how the conversion option works. A conversion is not a taxable event, and the new policy's death benefit is generally income-tax-free to beneficiaries.

Understand what renewal costs

Most term policies are guaranteed renewable, meaning you can continue the coverage past the level period without a medical exam if you keep paying. The price is the problem. After the level period, the premium is based on your attained age and rises each year, often to age 95 or so, and the first renewal premium can be many times the level one.

The Society of Actuaries' 2021 study of post-level term, covering 25 U.S. companies over 2000 to 2017, found that first renewal premiums in the most common design could be as high as 10, 20 or even 30 times the level premium. It also found that between 27% and 96% of policyholders dropped coverage at that point, and that those who stayed died at much higher rates than expected, which is why insurers price renewal steeply. If your premium is drafted automatically, a large increase can start coming out of your account before you decide, so watch for the notice. The guide on renewing term life insurance after the level period ends explains the mechanics.

To see what renewal might cost in dollars, take an invented schedule for Frank. Suppose the first renewal year costs 10 times his level premium, which is $840 x 10 = $8,400, and the premium rises 12% a year after that (an assumed pattern, not any insurer's):

Five years of renewing $300,000 of coverage would cost about $53,364. If he renews only one third of the face amount, $100,000, the five-year cost would be about $53,364 / 3 = $17,788. And a fall in the need may make a smaller amount sufficient. The pattern, not the figures, is the lesson: renewal cost climbs quickly, so renewal works best as a short bridge or a reduced-amount choice, not as a plan for decades.

Price a replacement honestly

If Frank is in reasonable health, a new policy may cost far less than renewing, because he is judged on his own health rather than the pool of people who stay. But age is a steep factor. One government benchmark is the Department of Veterans Affairs' schedule for Veterans' Group Life Insurance, which, as of July 1, 2025, charges $425 a month for $500,000 at ages 60 to 64, $690 at 65 to 69 and $1,075 at 70 to 74. That is a veterans' program, not a commercial rate, but it shows how quickly the price of the same coverage climbs with age. The guide on term life insurance at 60 and beyond covers availability and underwriting.

Practical points when shopping at 70:

1. Maximum issue ages shrink as term lengths grow. Many insurers sell 10-year terms to people in their sixties and fewer sell them at 70. Ask each insurer for its current limits.
2. Underwriting is full. Expect an application, possibly an exam, and a review of records. Conditions common at this age, such as controlled blood pressure, do not rule out coverage but affect the rate class.
3. Simplified issue and guaranteed issue exist for smaller amounts, with a short health questionnaire or none, at higher prices per $1,000 and with graded benefits in some policies. See the guide on guaranteed issue life insurance: no health questions, with limits.
4. A new policy starts a new two-year contestability period. Answer truthfully and completely.
5. Do not cancel the old policy until the new one is issued and in force, including after the free-look period if you want to be sure.

Compare the four paths for Frank

There is also a mixed route: reduce the amount, convert a small slice for a permanent floor and let the rest go. Many households find that the need falls with age, so a smaller amount does the job.

Three households at the same birthday (all hypothetical)

The same end date leads different people to different places. These sketches use invented facts.

Dolores, 70, widowed, with grown children and no debt. Her term policy was bought to protect her late husband's income plan and her children are financially independent. She has savings and a modest pension of her own. No one depends on the death benefit. She lets the policy end and puts the premium she was paying toward home repairs. The one thing she does is update her beneficiary forms on her other accounts.

Raymond, 70, with an adult son who has a lifelong disability. Raymond has a trust for his son but it is underfunded. The term policy is his main way to add to the trust at his death. Conversion is the priority for him, because he may not qualify for new coverage and the need will last as long as his son lives. He asks the insurer for conversion quotes on $100,000, $150,000 and $200,000, and chooses the amount he can pay for the rest of his life. He also asks an attorney who works with special needs trusts about how the proceeds should be paid. Converting only part of the amount lets him keep the premium within his budget.

Gloria, 70, healthy, with a mortgage that runs six more years. Gloria's balance is $90,000 and her husband would struggle with the payments if she died. A new six- or ten-year term for $100,000, bought while she is healthy, may cost much less than renewing her old $300,000 policy. She applies for the new policy a year before the old one ends and keeps both until the new one is in force. She does not renew the old policy, since $300,000 exceeds her need.

None of the three is "right" for everyone. Each is the result of the same order of questions: need, conversion, health, price, timing.

What not to do

Several common errors turn a manageable decision into a costly one:

• Letting the policy end by accident. An automatic payment may start at the renewal rate, or a missed payment can let the policy lapse. Mark the last level premium date on a calendar.
• Assuming the conversion window is open. Read the contract; do not rely on memory or a sales conversation from decades ago.
• Canceling before the replacement is in force. A coverage gap in your seventies can be impossible to fill if your health changes.
• Renewing the full amount by default. Renewing the face amount without asking whether a smaller amount would be enough multiplies the cost.
• Buying a permanent policy as an investment. Converting at 70 is an expensive way to build cash value. Convert because lifelong coverage is needed, not because the product is attractive.

The timeline to follow

Starting 12 to 18 months before the term ends gives room to make choices without pressure. The post on twelve months before your term life policy ends: a checklist offers a dated list, and the questions retirees ask are collected in questions retirees ask when a term life policy is about to end. A condensed version:

1. 18 months out. Locate the policy, the conversion deadline and the renewal premium schedule. Request them from the insurer in writing.
2. 15 months out. Decide whether anyone still depends on the coverage. Write down the amount and the number of years.
3. 12 months out. If the need exists, request conversion quotes for partial amounts and apply for a new policy while healthy, so you are covered either way.
4. 6 months out. Compare the quotes with the renewal schedule. Choose.
5. Before the last premium. Confirm in writing what happens on the end date, and make sure an automatic payment does not start the renewal at a price you did not intend.

Questions to ask the insurer

• What is the exact conversion deadline, and does it end before the term does?
• Which permanent products can I convert to, and what are the premiums for $100,000, $200,000 and the full amount at my age?
• What are the guaranteed renewal premiums for each year to age 95, and can I reduce the face amount at renewal?
• If I renew only part, how is the premium computed?
• What happens to the beneficiary designation and any riders?

Key takeaways

• Begin with the need: if no one depends on the death benefit, letting a term policy end is a normal and sensible outcome.
• If the need remains, check the conversion window first; it often closes before the term ends, and it is the only route that ignores your health.
• Renewal premiums are based on attained age and can start at many times the level premium, so renewal usually works as a short bridge or for a reduced amount.
• A healthy 70-year-old may find a new policy cheaper than renewal, but cost climbs steeply with age and issue ages are limited.
• Start 12 to 18 months before the end date, and do not cancel the old policy until a replacement is in force.