Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A 10-year term life insurance policy is a level benefit term life insurance policy that states that the premiums will remain fixed and guaranteed for 10 years.
Term life insurance guarantees the premiums will remain fixed for a specific number of years (10, 15, 20, 25, or 30 years). After the initial period of premium guarantee expires (the term period), the policy will be annually renewable and premiums will increase each year (based on age).
10-year term policies seem like a great deal because they typically offer the lowest possible premiums for a given amount of coverage. One of the main reasons to buy longer is to protect your insurability and pay a small amount for a longer time instead of securing a new policy when you're 10 years older and your health has changed. Creating a combination of benefits can often be a great idea (e.g. having part term and part permanent coverage or having part 10 year term, part 20 year term, etc.)
Please let me know if I can be of further assistance. Thanks very much.
That is a great question! A ten year term policy is one that provides you with the specified amount of coverage for the ten years as defined in your policy. On the day your policy expires, you have no more coverage, and no cash value or benefit to take from it. You can renew your policy, but it will dramatically increase in price. Typically a policy like this is to insure against a short term loss, like covering a college career, or a mortgage, or to provide a cheaper form of life insurance when money is tight. If you would like more details, please feel free to contact me, okay? Thanks for asking!
Ten year term life insurance is life insurance that typically has the rate locked in for 10 years. Sometimes term policies are only guaranteed for the rate not to go up for part of the term. So do be sure, when you are comparing rates, to be sure that you are comparing policies that have premiums guaranteed not to increase for the entire term.
It is a great temptation to buy ten year term life insurance because the premiums are so low compared to premiums for longer terms. However, if you need coverage longer than 10 years, it is usually a better idea to buy a policy with a longer term.
Why? Because, most likely, you are healthier now than you will be in 10 years. And at this time in history, life insurance rates are very low. So locking in historically low rates based on your current good health is almost certain to be a good deal for you for many years to come.
President, Lane Independent Agency, Southern California
Unlike Whole Life Insurance, which will last for the rest of your life so long as you pay the premiums or pay them out of accumulated cash value, Term Life Insurance will last only for a specific number of years, regardless of your desire to pay the premium. Many companies will allow you to continue to have the coverage and pay for it, after that number of years, but the premium will rise each year, until it becomes impossible for most folks to pay. With ten year term, the premium is guaranteed for ten years. After that, many companies will continue to take your money and provide coverage, but the cost will escalate. To lock in a fixed premium, you need either Whole or Permanent Life Insurance, or Term Insurance for a very long period, such as 50 years (few companies offer more than 30 years). Thank you. GARY LANE.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is sharing a risk. Since death is inevitable the only variable is when it will occur. A quick look at mortality tables will illustrate that the chances of death occurring increase with age. When the window of exposure (policy term) is short the possibility of an individual dying is lessened. If the consideration is cost it would seem that the 10 year term is a bargain. When the ten years are over and you have nothing, neither death benefit nor premiums paid, it may seem like less of a bargain.
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Term life insurance guarantees the premiums will remain fixed for a specific number of years (10, 15, 20, 25, or 30 years). After the initial period of premium guarantee expires (the term period), the policy will be annually renewable and premiums will increase each year (based on age).
10-year term policies seem like a great deal because they typically offer the lowest possible premiums for a given amount of coverage. One of the main reasons to buy longer is to protect your insurability and pay a small amount for a longer time instead of securing a new policy when you're 10 years older and your health has changed. Creating a combination of benefits can often be a great idea (e.g. having part term and part permanent coverage or having part 10 year term, part 20 year term, etc.)
Please let me know if I can be of further assistance. Thanks very much.
It is a great temptation to buy ten year term life insurance because the premiums are so low compared to premiums for longer terms. However, if you need coverage longer than 10 years, it is usually a better idea to buy a policy with a longer term.
Why? Because, most likely, you are healthier now than you will be in 10 years. And at this time in history, life insurance rates are very low. So locking in historically low rates based on your current good health is almost certain to be a good deal for you for many years to come.