10 Year Term Life Insurance Policy

by Jeff Rose on November 7, 2012

10 Year Term InsuranceInsurance is often a hair pulling conversation.

The intricacies of insurance can be confusing but a good, basic understanding is required for those wishing to plan for the future.

Certain insurances are legally required. Others are not. If the consumer values family and lifestyle, insurance must be a priority.

The Right Fit

There are several types of life insurance. Term life insurance is among the easiest to understand. Term life insurance is also among the most affordable life insurance. Term life is usually sold in 10 year blocks and 10 year term rates are among the lowest within term coverage. Due to the shorter term and lower rate, individuals desiring a 10 year policy may opt for more coverage. Shorter term policies may also be ideal for older adults who may have difficulty qualifying for 20 year or longer term policies. Even among older adults, 10 year term rates are extremely affordable. However, consultation and needs analysis are encouraged to determine the appropriate term for potential insured’s.

Is A 10 Year Term Right For Me?

Upon completion of the needs analysis, insured’s may discover longer term coverage to be more appropriate. Even though longer term coverage costs more, insured’s should understand basic differences between 10 year term vs. 20 year term policies. Twenty year term and longer policies are ideal for younger families. Younger families can secure 20 year policies at less expensive rates. If the young family outlives the policy, they can still reinsure at the end of the term at rates which are extremely reasonable and affordable. This also gives the family, at the end of 20 years, the ability to reassess need and adjust the new coverage accordingly.

10 vs. 20 Year Term

Another basic difference between 10 year term vs. 20 year term policies are the rates. Given two people of the same age, 10 year term rates are lower because they insure for shorter periods of time. The insured can take advantage of the rate difference by requesting more coverage. Also shorter term policies allow the insured to change coverage, if needed, more often. However, the insured must consider age, as rates increase once the policy terminates. Twenty year term rates are higher but lock in coverage for a longer period of time. A 20 year policy holder will pay the same rate for 20 years. A 10 year policy holder will pay a lower rate but experience a rate increase every ten years. Policy length is dependent upon need.Additionally, a 10 year term vs. 20 year term differs in availability. As mentioned briefly, 20 year term policies limit age group participation. For purposes of example only, a 20 year term policy may be available for purchase up to age 55. A 10 year term policy may be available for purchase up to age 65. This is largely due to the likelihood of death.

Don’t Wait. Do It Now!

Procrastination related to any life insurance coverage only serves as a detriment to the individual considering insurance. It only gets more expensive with time and lowers the likelihood of insurability. Insuring early, or as early as possible, aids future insurability and prepares for unexpected life events. Accidents are the third leading cause of death and aren’t limited by age. Life insurance protects assets but more importantly, families and way of life. Death is guaranteed. Low cost term coverage can aid unfortunate changes in life. Many term policies cost a fraction of home cable and internet services but are infinitely more valuable. Prioritize and be prepared for the future.

Here are a few sample quotes for both healthy males and females:

SexAGE10Yr Term Life PolicyCompany 1Company 2Company 3
Male25Face amount $250,000SBLI
$115
BANNEL LIFE
$120
GENWORTH FINANCIAL
$122
Male35Face amount $250,000SBLI
$115
MINNESOTA LIFE
$120
BANNER LIFE
$123
Male45Face amount $250,000SBLI
$203
BANNER LIFE
$210
GENWORTH FINANCIAL
$214
Female25Face amount $250,000SBLI
$105
BANNER LIFE
$110
MINNESOTA LIFE
$110
Female35Face amount $250,000SBLI
$108
MINNESOTA LIFE
$110
GENWORTH FINANCIAL
$113
Female45Face amount $250,000SBLI
$183
GENWORTH FINANCIAL
$184
BANNER LIFE
$185
SEXAGE10YR TERM POLICYCOMPANY 1COMPANY 2COMPANY 3
MALE25$500,000 FACE AMOUNTSBLI
$170
BANNER LIFE
$175
ING
$178
MALE35$500,000 FACE AMOUNTSBLI
$170
BANNER LIFE
$180
MINNESOTA LIFE
$180
MALE45$500,000 FACE AMOUNTSBLI
$345
GENWORTH FINANCIAL
$355
TRANSAMERICA
$365
FEMALE25$500,000 FACE AMOUNTSBLI
$150
BANNER LIFE
$155
ING
$158
FEMALE35$500,000 FACE AMOUNTSBLI
$150
BANNER LIFE
$160
MINNESOTA LIFE
$160
FEMALE45$500,000 FACE AMOUNTSBLI
$305
BANNER LIFE
$305
GENWORTH FINANCIAL
$312

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