A 10-year term life insurance policy is an affordable way to protect your loved ones during many stages of life.
For young families, a 10-year term policy can cover credit cards or student loans while you’re paying down debt, saving for emergencies, or socking away cash for a down payment for your first home.
For soon-to-be retirees, it can ensure that your loved one would not have to sell your home as an affordable policy could cover the last remaining years of a mortgage before social security fully kicks in.
A 10-year policy is one of the lowest costing life insurance policy you can buy as the coverage lasts only for a short term.
Cost of a 10-Year Term Life Insurance Policy By Age
The Estimated Monthly Cost of a
You can see from this life insurance rates table for a 10-year term policy that the cost ranges from $10 per month for a healthy, non-smoking female age 25; to $20 per month for a healthy, non-smoking male age 45; to $63 per month for a healthy, non-smoking male age 60 for a 10-year term life insurance policy with a face amount of $250,000.
Here we’ll discuss when it makes sense to get a 10-year term life insurance policy.
» Calculate: Life insurance needs calculator
Use a 10-Year Term Life Policy to Protect Your Income
Buy a 10-year term policy if it’s all you can afford.
You may have a lot of bills. Maybe you’ve got credit card debt. You couldn’t possibly afford to buy life insurance now, right?
Wrong. It’s in situations like these when you likely need life insurance the most and can’t afford not to have it.
If your income were to suddenly disappear, what would happen to your family? If you were already struggling financially, your death won’t make things easier. Final expenses—such as debt, medical bills, or your funeral costs—would be up to your family to pay.
A 10-year term policy can protect your income and your family’s future while you work toward paying off debt.
A little bit of life insurance is always better than none at all.
Once your finances are more secure, you can either convert your 10-year term life insurance policy into a permanent policy (if your policy is convertible) or you can purchase a new term policy. The benefit of converting your term life insurance policy after 10 years is that you won’t have to go through underwriting again. This means that if your health has gotten worse, you won’t have to have another medical exam to get covered.
Don’t worry. Most of the term life insurance policies that Quotacy sells are convertible (except Haven Life). Our reviews of the life insurance companies that we carry, detail whether each term policy is convertible to whole life insurance or not. Also, right within our online quoting tool, you can review the types of life insurance riders that are available to you.
» Compare: Term life insurance quotes
Use for Retirement Planning
Buy a 10-year term policy if you are close to retirement.
Most of the time term life insurance policies are purchased to cover the most financially-vulnerable years, such as when your children are small and you have quite a few years left on your mortgage loan.
Other times term life insurance policies are purchased to protect financial responsibilities that may crop up later in life, such as the purchase of a vacation home or your adult child’s graduate school tuition.
For example, let’s say you are 55-years old and you and your spouse pull the trigger and finally buy that dream condo on the ocean. It will be a great place for your children and grandchildren to visit.
However, one of your children isn’t quite done with graduate school and tuition isn’t decreasing anytime soon. You have savings and your Social Security benefits will be starting soon. You want to be sure that if the unexpected happened, your spouse wouldn’t have to sell the condo and your child could finish graduate school.
Cost of a 10-Year Term Life Insurance Policy (Age 55)
|The Estimated Monthly Cost of a
10-Year Term Policy
for a Healthy, Non-Smoking 55-Year-Old
|$100,000||Male = $22
Female = $20
|$250,000||Male = $42
Female = $32
|$300,000||Male = $48
Female = $37
|$500,000||Male = $73
Female = $55
|$750,000||Male = $107
Female = $80
|$1,000,000||Male = $136
Female = $102
Protect your most financially-vulnerable years with an affordable 10-year term life insurance policy.
Supplement Your Existing Life Insurance
Buy a 10-year term policy to supplement your existing life insurance.
Perhaps you planned ahead when you were young and bought life insurance right after your first child. You locked in a great low premium payment for a 30-year, $250,000 term policy.
Fifteen years later you’re now 40 years old and realize that your $250,000 term life insurance policy won’t cover your $400,000 mortgage. Instead of applying for a brand new 30-year policy with a $500,000 coverage amount, you can opt to add to your current coverage with a new 10-year term policy with a face amount of $250,000.
This will ensure that you have an appropriate amount of coverage for the next ten years while you’re paying off your mortgage and through your daughter’s college years—without being over-insured.
» Learn more: 10 Times 10-Year Term Life Insurance Won’t Cut It
Secure a Loan
Buy a 10-year term life insurance policy to protect a loan.
Whether you need to take out a personal or business loan, lenders need to know how you plan on paying back the loan.
They also like a back-up plan as assurance that they won’t lose money should you die unexpectedly before your loan is paid-in-full. Lenders will be more inclined to approve your loan if you assign a term life insurance policy to guarantee payment even upon death.
Test Drive Our 10-Year Term Life Insurance Quoting Tool
If you’re interested in a 10-year term life insurance policy, finding out how little a policy may cost you is incredibly easy.
Check out our quoting tool. Run as many quotes as you want without being required to enter your contact information. If you find a policy that you like, apply online in less than 5 minutes.
» Calculate: Life insurance needs calculator
About the writer
Writer, Editor, and Co-host of Quotacy's Q&A Fridays
Natasha is the content manager and editor for Quotacy. She has been in the life insurance industry since 2010 and has been making life insurance easier to understand with her writing since 2014. When not at work, she's probably studying and working toward her Chartered Life Underwriter (CLU) designation while throwing a tennis ball for her pitbull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on. Connect with her on LinkedIn.