Key Person Insurance Renewal | What to Do When Your Policy Expires

Key Person Insurance Renewal - Key Facts

-Most key person insurance policies are level-term - they run for a fixed period then expire

-There is no automatic renewal - you must arrange new cover before the old policy ends

-Premiums on a new policy will be higher because you are now older

-Your cover amount should be reviewed at renewal to reflect business growth

-Some policies offer a renewal option without medical evidence (guaranteed insurability)

-Starting the renewal process 3-6 months before expiry is recommended

What Happens When Your Policy Expires?

When your key person insurance policy reaches the end of its term:

Cover simply ends - There is no payout, no refund, and no automatic continuation
No gap cover - If you haven't arranged new cover, the business is unprotected from that date
New application needed - You must apply for a completely new policy
Fresh medical underwriting - The insured person will need to complete new health questions
Higher premiums - Because the insured person is now older, premiums will be higher than the original policy

This is why planning ahead is important. Start thinking about renewal 3-6 months before your current policy expires.

Should You Renew or Switch Provider?

At key person insurance renewal, you have the opportunity to:

Stay with the same insurer - Apply for a new policy with your current provider
Switch providers - Shop around for the best terms from all available insurers
Use a broker - A specialist can compare the market for you

There is no loyalty benefit to staying with the same insurer. Each new application is underwritten fresh, so it is always worth comparing the market. A different provider may offer better terms based on your current age and health.

Use our comparison page to understand your options.

Reviewing Your Cover Amount

Renewal is an ideal time to review whether your key person insurance cover amount is still appropriate:

Has revenue grown? - If the business has grown, the key person's financial impact may be larger
New debts? - Any new loans or finance that should be covered?
Role changes? - Has the key person's role or importance changed?
New key people? - Are there additional people who now need cover?
Team depth? - Has the business reduced its key person risk by building team depth?

If the business has grown significantly since the original policy, you may need substantially more cover than before. Use our calculator to recalculate.

Tips for a Smooth Renewal

How to manage your key person insurance renewal effectively:

Set a diary reminder - Note the policy end date and set a reminder 6 months before
Review cover needs - Has the business changed since the original policy?
Get quotes early - Start the process 3-6 months before expiry to avoid gaps
Disclose honestly - Any health changes since the last application must be declared on the new one
Consider term length - Would a longer term make sense this time to avoid frequent renewals?
Don't cancel early - Keep the old policy running until the new one is in force to avoid gaps in cover

Key Person Insurance Renewal FAQs

Does key person insurance automatically renew?

No. Most key person insurance is level-term cover that simply expires at the end of the policy term. There is no automatic renewal. You must arrange a new policy before the old one ends to maintain continuous cover.

Will my renewal premiums be higher?

Yes, premiums on a new policy will be higher because the insured person is now older. Age is a primary factor in life insurance pricing. However, the increase may be less than you expect - get quotes to compare. If health has also deteriorated, premiums could increase further.

When should I start the renewal process?

Start 3-6 months before your current policy expires. This allows time to get quotes, compare providers, complete any medical underwriting, and ensure the new policy is in force before the old one ends. Avoid leaving it to the last minute as medical evidence can take weeks.

Can I get renewal without medical questions?

Some policies include a guaranteed insurability option that allows renewal without fresh medical evidence, but this is not standard. Most new policies require a fresh health declaration. If the insured person has developed health conditions since the original policy, this could affect terms or premiums.

Key Person Insurance RenewalWhat Happens When Your Policy Ends?