What is 10 year term life insurance? – InsuranceNewsNet
What is 10 year term life insurance and how does it work
10-year term life insurance is a policy that provides a decade of guaranteed insurance. If a person dies during this period, their beneficiary will receive the coverage amount. This coverage amount is generally tax-free. The policyholder’s premium remains the same throughout the term. Once the 10 years have passed, the policy will expire. Depending on the provider, a policyholder may be able to convert it to a permanent policy. A 10-year term insurance policy is considered one of the most affordable life insurance options.
Factors influencing premium rates for a 10-year term insurance policy include age, current state of health and medical history. Health is an important factor in the amount of premiums. Example: The cost of the premium for a 30-year-old male non-smoker with a
Who can benefit from 10-year term life insurance?
Depending on personal and financial circumstances, some life insurance buyers may benefit more from a 10-year term life insurance policy than others. An example is a young family. Parents of middle school-aged children often want to support their children into adulthood and help pay for their school fees. Ten years may be enough until the children are old enough to support themselves financially. Another example is if a person plans to retire in 10 years. The policy can provide financial security to their family until they reach retirement and
Some life insurance buyers may have less than 10 years on their mortgage. A high enough coverage amount on a 10-year term insurance policy could pay off the mortgage in the event of the policyholder’s death, reducing the financial burden on their family. Life insurance buyers may consider other debts, such as credit cards, loans and living expenses when determining the best amount of coverage.
The bottom line
A 10-year term insurance policy can be ideal for young families and older adults. Life insurance buyers will want to assess their current financial situation to determine if 10-year term insurance is right for them.
Fidelity Life offers term life insurance policies online and with the help of a licensed agent, making it easy to get coverage.
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Source: Fidelity Life