Term Life Renewal Notice: The Premium Jumped. Now What?
Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294Last reviewed · Published October 3, 2026
Why it jumped
A level term premium is averaged over the level period. Afterward, renewal premiums are priced each year for your attained age, and because the healthiest people tend to leave at this point, renewal rates assume the people who stay are less healthy. That is why the jump is so large. Renewable term explained.
AI voices. Education, not tax or legal advice. Hans is paid a commission if you buy a policy through him. Comment CONVERT on the video for the checklist.
Decide with one table
Your three options
| Renew | Convert | New term | |
|---|---|---|---|
| Health questions | None | None (original class) | Full underwriting today |
| Premium | Rises every year | Permanent premium at today's age | Level again for a new period |
| Deadline | Within the renewal period | Conversion deadline (often earlier than the end of term) | None, but health can change |
| Best for | A short bridge | Health has changed and you still need coverage | Healthy and need coverage for a new period |
Renewal bill? Check conversion first.
Send your email and I'll send the in-force illustration request letter. Return the illustration and I'll review it within one business day.
We’ll email it to you. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
What most people do
Lapse at the end of a level period rises with the size of the jump: about 17% when the new premium is 1 to 2 times the old one, about 65% at 4 to 5 times and 93% at 18 to 20 times (SOA post-level term study). Only about 4.9% of 10-year term by amount converts in its final year (SOA/LIMRA 2026). Dropping is right for people who no longer need coverage. It is a costly mistake for people who still do and whose health has changed.
- Find the conversion clause in your policy and the deadline; call the insurer to confirm it if unsure.
- If you are healthy, get a new term quote at the face you still need.
- If your health has changed, ask for a conversion illustration before the deadline.
- If you need a few months, pay one renewal premium as a bridge while you decide.
Find your conversion deadline · How conversion works · What happens when term ends
Send the statement or letter. Get a plain answer.
Within one business day you get a written read: what the letter or statement means for your policy, the options, and the one to take first. No pressure to change anything.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer
Frequently asked questions
Sources
- Pacific Life PL Promise Term sample illustration (male 45, $250,000)
- Shock lapse rises with the size of the premium jump: about 17% when the post-level premium is 1 to 2 times the level premium, about 65% at 4 to 5 times, and about 93% at 18 to 20 times (T10, by count) (as of 2014-05)
- About 4.9% (by amount) of 10-year term converts to permanent coverage in the final level year, per the 2026 SOA/LIMRA term conversion study (as of 2026-05)
- Tritium: term conversion privileges by carrier (April 2024 compilation)
Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830
Contact: hans@hansgoldstein.com · 213-414-2808
General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.