Can You Extend the Tenure of a Term Insurance Plan?

Written by : Knowledge Centre Team

2025-12-19

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10 minutes read

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When you are looking to secure your financial future and that of your family, an insurance policy is an option you may have come across. But that’s the easy part, the difficult part is figuring out which among the different types of insurance plans your situation calls for.

A life insurance plan that provides coverage for a specified period is known as a term insurance policy. If the policyholder dies during the period when the policy was active, the nominee(s) will receive the death benefit. Term insurance is not as expensive as a permanent life insurance plan. Term insurance does not have a cash value. The policies provide only a guaranteed death benefit.

Can you extend the tenure of your term insurance policy?

Yes, you can extend the tenure of your term plan. Most of the term insurance plans do not expire until the policyholder is 90-95 years old. At the end of the term of the policy, the initial term period ends. It means that the low premium the policyholder was paying for the policy ends. After the end of the pre-decided term (20 years or as the case may be), the policyholder can keep paying the annual premiums until the age of 90 or 95.

However, the amount to be paid at the end of each term will keep increasing. Thus, technically speaking, it is not possible to adjust the term. It remains fixed. However, in some cases, there is a possibility to change the term insurance period. The cases are-

Convert to a life insurance policy: It is one of the best ways to extend your term insurance policy. It is possible only if the policyholder had bought a convertible plan. There will be a clause for the same in the policy document. Additionally, such conversions can take place only after a specified time.
Auto-renewal of the plan: It is another scenario where the term insurance can be extended. The policyholder should have bought a term insurance renewal plan. In such a case, the policy will extend by another term until you attain a specific age.

The best part about a renewable policy is that you can renew it even if you are diagnosed with a medical disease. However, the premium which the policyholder will have to pay after the detection of the disease will be higher.

Term Policy Expiration at the end of the term

Different plans have different conditions. Most term insurance plans do not expire at the end of the specified period. Generally, they provide coverage till the policyholder is 95 years old. But the premium in such a case will be higher. The premium might increase yearly or after the end of a term, as mentioned in the contract.

One of the primary advantages of a term insurance policy is the high-value coverage provided to a policyholder at an affordable premium. In comparison to other life insurance policies, a term insurance plan has lower premiums. Another significant benefit is that the earlier you buy the policy, the less will your premium be.

Final Thoughts

It is better to buy a term plan with the longest term policy if that fits your budget. If you have to meet some short-term financial goals, you may customize the length of the policy accordingly. You have to remember that life insurance is extremely situational and that is the reason Canara HSBC Life Insurance has a highly customisable term plan - iSelect Smart360 Term Plan. This plan allows you to increase the sum assured according to evolving life stages and needs. Apart from that, you can also add riders to the plan for enhancing it. It offers a whole life cover option that will insure you till you turn 99! If you are having trouble deciding on the length of the term plan, calculate your needs and find a plan as per your financial goals.

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Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.