10 Year Term Life Insurance

Eric Van Haaften Term Life Insurance

If you are looking for the perfect 10-year term life insurance policy, you have come to the right place!

These popular and cost-effective policies are attractive for those looking for a budget-friendly solution to protect their family.

This article will provide smart tactics and expert insights to help you navigate term insurance options like a pro in no time.

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What does 10-year term life insurance mean?
Is a 10-year term the best option for you?
How much does 10-year term life insurance cost?
How do you purchase term life insurance coverage?
FAQ: 10-Year Life Insurance

What is 10-Year Term Life Insurance?

Term life insurance plans are usually available between 10 and 40 years, with longer-term periods having more expensive premiums.

A ten-year life insurance policy provides a guaranteed premium and death benefit should you pass away during the ten years that your policy is in force.

As long as you continue to make your payments, your policy will remain active, and your beneficiaries will receive a tax-free death benefit if you die.

One of its biggest advantages is that a 10-year term is a budget-friendly option for those who only need coverage for a specific period.

Not to mention, because the coverage only lasts for a decade, the premiums are much lower than longer-term policies or permanent life insurance.

CONVERTIBLE Ten-YEAR TERM INSURANCE

If you exceed your policy’s ten-year period, you can renew it, convert it to permanent coverage, or let it lapse.

Ensuring that the 10-year term duration meets your future coverage needs is a good idea because the renewal premiums will increase annually if you outlive your coverage.

Fortunately, if your policy is convertible and you’ve outlasted or underestimated your coverage needs, you still have viable choices.

For instance, most policies offer a conversion privilege, allowing you to switch to permanent coverage without answering any questions about your health.

You will automatically qualify for a new permanent policy, but your premiums will be higher than those for term coverage.

However, purchasing a new term policy would be more reasonable if you are still in decent health and don’t need permanent coverage.

Is a 10-Year Term Right for You?

When navigating the complex world of life insurance, it’s important to align your coverage with your current financial obligations and future goals.

This means considering how your family will manage mortgage payments, debt clearance, income replacement, and upcoming expenses like your children’s college tuition if you should pass away.

A common rule of thumb suggests securing a policy that’s 7-10 times your annual salary. However, given the unique nature of each individual’s situation, it’s important to adjust this guideline accordingly.

A 10-year life insurance policy is a cost-effective solution for middle-aged individuals who only need coverage for a limited time.

It’s also a solid choice for those who can’t afford longer-term plans now but need immediate coverage until they can secure a 20-year or 30-year policy in the future.

Plus, it is always better to be safe than sorry when protecting your loved ones from financial catastrophe if something happens to you.

reasons for ten-year term life insurance

College Tuition: Many middle-aged people only need coverage until their children finish college. The life insurance death benefits can pay for a surviving child’s college education.
Mortgage Protection: Couples with less than a decade to go on their mortgage often choose a shorter-term length to pay off their mortgage loan if they should die.
Income Protection: Most people in the prime of their careers need term life insurance to protect their income for their spouse until they retire.
Divorce Decree: If you rely on your ex-spouse for financial support in the future, they must carry a divorce life insurance policy as part of your settlement agreement and name you as a beneficiary.
Supplement Your Group Life Insurance: If you feel your existing group life insurance is insufficient, adding a shorter-term policy is an inexpensive way to cover any gaps in your coverage.
Protect a Business Loan: If you need to secure a business loan, banks want to know that you can eventually get back if you die unexpectedly before your loan is repaid. Banks sometimes require people to assign their term life insurance policy to guarantee payments upon death.

As you can see, choosing a 10-year term policy aligns well with the diverse coverage needs of people across various age groups.

Plus, term insurance offers reliable protection while investing in long-term growth strategies like stocks, bonds, mutual funds, and real estate.

Prominent financial experts like Dave Ramsey and Suze Orman advocate for choosing cheap term coverage and investing the difference, which would otherwise be spent on more expensive permanent policies.

However, CNBC highlights scenarios where permanent life insurance might be more appropriate. These may include ensuring lifelong support for children with special needs, meeting estate planning objectives, or covering final expenses.

10-Year Term Life Insurance Cost

The cost of your premiums will depend on factors such as your age, health background, and the type and amount of coverage you need.

Naturally, securing a policy at a younger age can lead to lower premiums due to the decreased risk associated with a longer lifespan.

Interestingly, many insurers offer younger applicants the convenience of obtaining coverage through just a phone interview instead of undergoing a traditional medical examination.

As you may have guessed, premiums tend to rise for those with pre-existing health conditions, given their potential impact on longevity.

Yet, minor health issues such as hypertension and cholesterol typically don’t bar you from getting insured or cause exorbitant rate hikes.

Fortunately, we can access various insurance companies catering to diverse medical histories. This ensures we find policies that align well with your needs and budget constraints.

Get started by using our calculator to quickly compare different term life insurance plans for your family in minutes.

What Does 10-Year Term Insurance Cost?

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Below, we show the average 10-year term life insurance rates by age, with face amounts ranging from $250,000 to $ 1 million.

Notice how men’s insurance premiums increase with age. For example, a million-dollar policy at age 40 costs just $29 monthly, while at age 60, the price for a similar 10-year term increases to $216.

This increase over twenty years highlights the importance of consulting with one of our agents to get a policy tailored to your needs and budget.

10-Year Term Life Insurance Rates


	$250k	$500k	$750k	$1mm
Age 20	$11	$15	$19	$22
Age 30	$13	$16	$20	$24
Age 40	$14	$20	$25	$29
Age 50	$26	$44	$63	$78
Age 60	$62	$115	$171	$216
Age 70	$174	$319	$475	$612

* The monthly 10-year term rates for non-smoking males

Buying Term Life Insurance

When you’re in the market for a 10-year term life insurance policy, it’s vital to shop around and compare prices from different insurers.

You can begin by researching companies known for their financial stability. We recommend using third-party ratings from A.M. Best to assess the insurer’s financial health and reputation.

From our experience, the top 10 term life insurance companies are consistently Banner, Prudential, Pacific Life, Protective, and Lincoln Financial.

Depending on your age and desired coverage level, the application process usually consists of a brief phone interview or a medical exam.

This exam includes blood and urine tests and basic physical metrics such as height, weight, and blood pressure measurements.

To get the best test results, consider scheduling your exam in the morning after fasting overnight and refraining from consuming caffeine or alcohol or exercising at least 24 hours beforehand.

Generally, finding and securing a level-term insurance policy that fits your needs and budget can take anywhere from a few weeks to about a month.

Tips for Buying ten-year term life insurance

Coverage Needs: Consider your needs, such as replacing income and covering major expenses like mortgage or education costs, to determine the appropriate coverage level.
Term Suitability: Make sure a ten-year period meets your needs; if there’s a chance you’ll need coverage longer than that period, look into policies with more extended terms.
Budget: Typically, 10-year term policies are more budget-friendly than policies with longer durations. Ensure the premiums are manageable within your financial plan.
Conversion Feature: Check if the policy offers conversion to permanent life insurance without needing another medical examination.
Available Riders: Consider enhancing your policy with riders for extra protection in critical illness, disability, or accidental death.

FAQ: 10-Year Life Insurance

Do term life insurance rates go up in cost? As you age, term life insurance costs rise yearly when seeking new coverage. This increasing cost is due to the higher likelihood of death as one gets older.

Are renewable or decreasing policies more affordable? When you require coverage extending beyond a few years, decreasing term life and yearly renewable term policies offer no cost advantages compared to a 10-year period.

Do you get money back if you outlive your term coverage? If you survive beyond the duration of your term policy, you typically won’t receive a refund. However, by choosing a return of premium rider, you get all premiums paid throughout the term returned to you tax-free.

What insurance riders come with a 10-year term policy? The accelerated death benefit rider is included with most term insurance policies and enables you to access part of your death benefits early when diagnosed with a terminal illness.

Is a medical exam required to qualify for coverage? Based on your health status, you will undergo a medical examination or complete a health interview as part of your application process. Our insurance agents will inform you if you’re eligible for coverage without needing an exam.

What happens after my 10-year term policy expires? Many insurers terminate your coverage after your term ends. Other companies offer the option to extend it yearly at higher premiums. Another option is converting it into permanent coverage.