10 Year Term Life Insurance Policy Quote and Rates
One of the most important life insurance decisions you will make is deciding between full life insurance and term life insurance. Most people logically solve it by following the term.
It is not only cheaper than a lifetime, but much cheaper.
After that, the next important decision is the length of the term. 20-year to 30-year term life insurance is a common comparison, as they are two of the most popular terms.
There are advantages and disadvantages in both terms. To help you make a decision, we will discuss the similarities and differences between the two terms. Hopefully, that will allow you to make a clear choice for your own personal circumstances.
- 1 10 Year Term Life Insurance Policy
- 1.1 How does a 10-year term life insurance contract work?
- 1.2 Who should consider getting a 10 year life policy?
- 1.3 A multiple policy plan can work in two ways:
- 1.4 Cheap Term Life Insurance
- 1.5 No Medical Exam Life Insurance
- 1.6 Term life insurance rates of 10 years by age:-
- 1.7 Universal Life Insurance Quotes
- 1.8 Request New Coverage
- 1.9 How affordable is a 10-year term life insurance policy?
- 1.10 Average cost of a 10 year term life policy
10 Year Term Life Insurance Policy
Whether you decide on a 20-year or 30-year term, both policies are basic term life insurance plans.
That means they are pure life insurance. Unlike full life insurance, you are not paying as much for life insurance as an investment provision.
For this reason, whether you choose a 20-year or 30-year policy, you will pay only a fraction of the premium you will pay for a lifetime policy.
Since there is no investment provision, there is also no possibility to borrow against your policy. But, as you probably already know, the returns on investments in life insurance policies are often less than you can get by investing on your own in exchange for traded funds tied to the S&P 500.
How does a 10-year term life insurance contract work?
Term insurance is the most affordable form of life insurance. It is more affordable than universal life and whole life for 4 to 10 times the cost. The main reason why term insurance is so much more affordable is that it is term life insurance, while the other two options are permanent life insurance options.
Term insurance is designed to last a specified number of years, known as the length of the contract. Ideally, you want to choose a contract duration that is long enough to provide financial protection to your family until there is no longer a significant need.
The 10-year term length is just one of the available term lengths you have to choose from. It is the lowest and most affordable traditional term contract term offered by most insurance companies that offer term life insurance policies.
Some companies offer a one-year term, commonly called an annual renewable term (ART) or annual renewable term (YRT). You can also find some five-year term options, but one- and five-year term options are not as standard as 10-year policies or some of the longer contract lengths.
Other term life insurance durations include 15, 20, and 30 years. There are even some companies that have also started offering a 35 and 40 year old option, but again, these lengths are not as standard as 10, 15, 20 or 30.
Regardless of which plan you choose, be it a 10 year term or a 30 year term, your premium payments are locked for the entire duration of the contract.
Who should consider getting a 10 year life policy?
A 10-year life policy is best suited for those with short-term life insurance needs. Please note that with a 10-year plan, your rates are only locked for the first 10 years, and will then increase annually if you choose to stick to your plan.
Most people who buy a 10-year contract often do so because of its affordability. As mentioned, term insurance is significantly cheaper than permanent life insurance options. However, cost also comes into play between different durations.
Longer term coverage, such as a 15, 20, or 30 year policy, will cost more than a 10 year policy. A longer contract will result in a greater chance that the insurance company will have to pay a possible death claim.
Although cost tends to be the main reason why people, especially young families, choose to get a 10-year policy, it is not the only reason. A 10-year plan can be helpful when it involves the need for multiple life insurance policies.
A multiple policy plan can work in two ways:
It is not uncommon to have existing life insurance, such as an employer-provided plan or even an individual property policy. Your current life insurance may have had enough coverage at that time, but as life progresses, insurance needs may change, often resulting in the need for additional coverage.
Instead of canceling your current life insurance, it may make financial sense to keep your current coverage and simply increase your life insurance coverage with a new 10-year term policy.
The reason behind this is that life insurance rates increase as you get older. In most cases, it would be cheaper to keep the existing amount of coverage and add only the difference in what is needed with another policy.
Another benefit of a 10-year term life insurance policy is through the use of ladder life insurance. The method works best for younger families looking to achieve the best life insurance planning structure.
The plan works by purchasing a longer-term duration, such as a 30-year term as basic coverage. The 30-year plan will focus on meeting long-term life insurance needs, such as a mortgage or the replacement of a spouse’s loss of income. From there, you can add additional term insurance coverage, such as a 10-year term policy, to cover shorter life insurance needs, such as debt, or provide funds for a child’s college expenses.
By structuring your life insurance in a way that uses multiple policies, as your coverage needs to decrease, so should your temporary policies, leaving you with only one plan that will take you through your old age.
In most cases, structuring life insurance policies in this way can be more affordable than if you purchased a life insurance policy.
Cheap Term Life Insurance
A 10-year term life insurance policy can also be helpful in many business planning needs. Many times, when a business needs a loan, lenders will require the company to purchase affordable term life insurance policy that is equivalent to the loan amount.
This is known as a collateral assignment and benefits the lender in the event that the business owner dies with an outstanding loan balance.
If this happened, the lender would receive payment in the amount of the outstanding balance, and the remaining portion would be paid to the beneficiary designated in the cheap life insurance policy.
Additional business planning includes coverage of key people as well as a buy-sell plan.
Does a 10-year term life insurance policy require a medical exam?
Several life insurance companies offer 10-year life insurance without a medical exam.
Medical exams are often part of the general application process when applying for life insurance coverage. The only time you are not 100% required is if you are requesting a guaranteed acceptance policy.
The life insurance medical exam is a useful resource used by insurers of insurance companies to assess your overall risk and your eligibility for 20 years life insurance policy coverage.
Medical exams are provided to you free of charge. They are usually completed at home with an authorized examiner who has been hired by the insurance company. The average medical exam takes between 30 and 45 minutes to complete.
It consists of questions about your general health history, as well as blood pressure, height and weight readings, and a blood and urine sample.
As mentioned, the medical exam helps the insurer determine if your coverage request can be accepted, but for some applicants, it may not be necessary.
No Medical Exam Life Insurance
Several insurance companies may offer 10-year term life insurance with no medical exam requirements. With technological advancements, enrollment can be done quickly and without the need for an applicant to pass an exam.
The use of subscription tools such as prescription checks, medical background checks, and other public data is often sufficient to verify the accuracy of responses to personal and medical questions on the application.
No life insurance for medical exams can be an excellent option for those who need fast coverage or are afraid of needles. Coverage is subject to approval without life insurance for medical examination.
Term life insurance rates of 10 years by age:-
|AGE||Gender||$250,000||$500,000||$1 MILLION||$2 MILLION|
Each of our non-medical term life insurance companies offers a 10-year term life insurance option.
No life insurance exam has its limitations. For starters, those with high-risk health conditions are unlikely to qualify and will often be required to undergo a medical examination.
Exam registration is often also limited to an age group of 18 to 65 unless you apply for a final expense or a burial insurance policy.
What happens at the end of the 10 year term?
There are a few different options that can be taken once a 10-year term insurance policy has expired. Options include:
- Renew policy annually
- Convert the policy to permanent coverage
- Request new coverage
- Allow the policy to expire and end
- Renewable annual term (ART)
Shortly before a term policy is due to expire, you will generally receive a letter in the mail informing you that your tier premium is coming to an end. In most cases, a letter will notify you that you have the option to continue coverage under the same policy but at an annual renewable rate.
If you choose to continue coverage, you will have to do nothing more than pay the requested premium. Just be aware that the cost of continuing coverage on an expired term policy can be quite costly and will only become so more expensive each year.
Universal Life Insurance Quotes
Convert a 10-year term life insurance policy into permanent coverage. Most term insurance policies offer what is called a conversion option. It allows you to change your existing term insurance policy to a permanent policy, such as universal term life insurance or full life insurance. If you choose to convert your policy to permanent coverage, it will not require you to medically re-qualify through subscription.
The conversion option can be an excellent option, especially if you have experienced a change in your health that would disqualify you from obtaining new coverage. Just keep in mind that when switching from temporary insurance to permanent insurance, the premium will be more expensive.
Most conversion options must be requested before a specific age, such as age 70 or 75.
Conversion options must also be requested before the end of the premium tier contract expires. It is best to find out the conversion rules before purchasing your term coverage with a particular company.
Request New Coverage
If you have a 10-year term life insurance policy that will expire soon, the cheapest option will be to reevaluate your life insurance needs and decide if you still need life insurance coverage.
Applying for new coverage will require you to re-qualify with a new subscription, but it is probably the cheapest option. It will also block your rates for another 10 years or more, depending on the length of the term you choose.
Expire and end
If there is no longer a need for life insurance, many people choose to let the policy expire. After 60 days, the policy will end and coverage will have officially ended. After the policy expires and ends, you will not receive any refund of the premiums you paid. Term insurance does not accumulate cash growth.
Let’s start with the only disadvantage of the term of 30 years compared to 20 years: premium level.
The premium will be approximately 50% higher in 30 years than in 20 years.
For a healthy 25-year-old male nonsmoker, the premium for a $ 500,000 30-year policy would be approximately $ 450 per year. That’s $ 150 a year more than the 20-year term policy, or about $ 3,000 more in 20 years.
Now if you’re on a tight budget, $ 3,000 may be significant, even though they span two decades.
But the 30 year term policy comes with many undeniable benefits.
Average age cut for term life insurance policy
The average age limit for applying for a new 10-year term life insurance policy is generally 80 years with most companies. A 10-year term policy purchased at age 80 would provide a guaranteed fixed premium at age 90.
Please note that with most term insurance policies, after the age of 70 (75 for those who qualified for the most preferred preferred health class), you may not be able to convert your term coverage into permanent coverage.
However, many insurers will allow you to renew the policy annually after it expires until the age of 90 or 95.
How affordable is a 10-year term life insurance policy?
Affordability depends on several factors. If we talk exclusively about affordability compared to other life insurance options or with different terms, then yes, a 10-year policy is the cheapest option.
Choosing a longer term or permanent plan increases the risk that the insurance company will have to pay a death claim. Therefore, insurance companies offset this risk with higher premiums for longer-term policies.
The affordability of your own individual life insurance policy is based on a variety of factors. The three most significant factors will be your age at the time of application, the amount of coverage requested, and what your approved health rating will be.
Each life insurance company uses what are known as health ratings to determine its overall risk. There are four primary health classifications ranging from preferred to standard. The health rating you qualify for will be determined once the subscription is fully completed.
Companies set life insurance rates to correspond with each health classification. A higher health rating, as the most preferred, will result in the lowest rates, as that class is reserved for healthier applicants.
Average cost of a 10 year term life policy
The average cost of a 10-year term life insurance policy varies. Insurance companies use several factors to calculate premium rates based on a health rating. The main factors include:
- Tobacco use
- General health
- Family health history
- Height and weight
- Driving history
- Alcohol use
- Drug use
- Dangerous activities or employment
Sample of monthly premium rates based on preferred health ratings for a 10-year term life insurance policy for a non-smoker.
If you can stretch your budget a little more, the 30-year policy will give you more options later in life.
Call us or complete the quote form on our site.
We’ll get you the policy you need, with a premium you can afford. And that is whether it is a 20-year or 30-year policy. In all cases, we will develop the policy that works best for you.