What happens to term life insurance when the term ends?
In short
When the term ends, German term life insurance (Risikolebensversicherung) simply stops, with no payout, no surrender value and no refund of premiums. If you still need cover, check about three years before the end whether your policy has an extension option without new health questions; in one common tariff it adds up to 15 years, at most until age 75.
Guide values from published tariff examples and policy terms in Germany.
Example
Typical range
Term life insurance, age 30, non-smoker, EUR 200,000, 30 year term
about EUR 9 to 16 a month
Funeral insurance, starting at 60, EUR 7,000
about EUR 35 to 39 a month
Funeral insurance, starting at 70, EUR 7,000 to 8,000
about EUR 54 to 63 a month
Extension by option in one tariff
up to 15 years, ending at 75 at the latest
Guide values as of October 2026 from published tariff examples and policy terms.
The premium after an extension depends on the age reached and is a guide value from quoting
practice in the worked example.
Worked example
Loan cover runs out before the loan
Policy taken out at 35 for 20 years and EUR 200,000. At 52 it turns out the loan runs five years longer after refinancing.
Original end
at age 55
Request extension by
age 52, three years before the end
Extension
5 years, until 60
Health questions
none, premium based on age 55
With the option, the loan stays covered until 60 without a new health check. Without it, a new policy at 55 would need all diagnoses of recent years.
What happens on the last day
Term life insurance only pays if the insured person dies during the term. Cover ends at the latest when the agreed term runs out. After that the policy has lapsed and the direct debit stops.
There is no savings balance. Typical terms state that no surrender value arises. The premiums were the price for being covered during those years, just like liability or contents insurance. If the insured person dies one day after the term ends, this policy pays nothing.
Option
What applies
Let the policy run out
no cover, no more premiums
Use the extension option
no health questions, premium based on age reached
Take out a new policy
new health questions, new waiting periods
Funeral insurance for burial costs
small sum, often without health questions
Do nothing, assets are enough
no need, no premium
The extension option
Some tariffs let you extend the term without a new health check. In one common tariff you request an offer at least three years before the end and return it signed within 30 days. The extension is at most 15 years and at most double the original term.
The limits are tight: the policy may run for 45 years in total and must end at the latest in the calendar year the insured person turns 75. The option can be used once and not for paid up policies. The new premium is based on the age reached, so it will be clearly higher.
Without an option: a new policy
Without the option, only a new policy is left. You answer the health questions again, including all diagnoses of recent years. The premium is based on your higher age. Depending on the tariff, the maximum entry age is 70 or 75 and the maximum end age 75 or 85.
A new policy also restarts the deadlines: three years for suicide and the period in which the insurer may review your health answers. Let the old policy end only once the new one has been accepted.
Do you still need cover?
The term was chosen for a purpose, such as paying off a loan or supporting children until they stand on their own feet. Once that purpose is met, the end of term life insurance is a saving, not a loss.
You may need follow on cover if part of the loan is still open, a partner without their own pension needs protecting or the children finish later than planned. For burial costs, smaller funeral insurance (Sterbegeldversicherung) or your own savings account is often enough.
Act before the end
Note the end date from your policy document and check about five years before whether the need remains. With tariffs that have an extension option, the deadline three years before the end is decisive: after that the option is lost and only a new health check remains.
Step by step
Find the end date in your policy document and note it.
About five years before, check what the cover is still needed for.
Look in the terms for an extension option and its deadlines.
If needed, request the extension offer in time.
Without an option, apply for a new policy and let the old one end only after acceptance.
Checklist
End date noted
Remaining loan at the end date calculated
Extension option and deadline checked
Partner's protection considered
Burial costs covered another way
Common mistakes
Believing you get money back at the end of the term
Missing the deadline for the extension option
Cancelling the old policy before the new one is accepted
Extending out of habit although nobody needs protecting
Questions and answers
Frequently asked
Do I get my premiums back when the term ends?
No.
Term life insurance has no savings balance; the premiums paid for the cover.
Can I extend shortly before the end?
With an option usually only up to three years before the end.
After that only a new policy with new health questions is possible.
Do I have to cancel the policy at the end?
No.
It ends automatically when the agreed term runs out, and premiums are no longer collected.
What if I become seriously ill after the term ends?
Then a new policy is hard to get.
That is exactly what the extension option is for, as long as its deadline has not passed.
