The short answer
Life insurance isn't a separate product. It's a term life policy, and for you the difference is mainly how carriers review the application and set the rate. Rules vary by carrier, so comparing several through an independent agent is the simplest way to find a good fit.
This guide answers the most common questions about 10 year term life insurance.
There are two main kinds of life insurance: term and permanent. Whole life is the most familiar permanent kind.
Here is a clear comparison of term vs whole life insurance so you can pick the right fit.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
Term: lower cost, set length, no cash value. Whole life: lifelong coverage and cash value, higher cost. Convertible term keeps the door open to permanent coverage later.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- 10 year term life insurance: which type of coverage fits you?
- Choosing the amount
- How life insurance works
- Difference between term and whole life: should you buy term or whole life?
- How term life insurance works
- Can you change term into whole life?
- What affects the cost of term life insurance?
- Add-ons (riders) that can help
- Is term life right for you?
- Frequently asked questions
10 year term life insurance: which type of coverage fits you?
| Feature | Term life | Whole life | Final expense |
|---|---|---|---|
| How long | 10 to 30 years | For life | For life |
| Builds cash value | No | Yes | Yes, small |
| Typical use | Income, mortgage, children | Lifelong needs, heirs | Funeral costs, final bills |
| Underwriting | Varies by carrier | Varies by carrier | Simplified or none |
Many people combine types: term for the years the need is largest, and a smaller permanent policy for needs that last.
Choosing the amount
Start from what the coverage is for, then pick an amount whose premium you can keep paying. It's fine to start smaller and add coverage later if your budget changes.
Compare rates from several carriers in about two minutes. Free, no obligation.
How life insurance works
Term life insurance pays a death benefit to the people you name if you pass away during the term, which is usually 10 to 30 years.
The policy works the same way for everyone; what changes from person to person is how the carrier reviews the application and sets the rate.
Tip: Comparing several carriers through an independent agent is the simplest way to see which one fits your situation.
Difference between term and whole life: should you buy term or whole life?
Term is temporary and affordable. Whole life is permanent, builds cash value and costs more. Neither is better in every case. The right choice depends on how long the need lasts and how much you can comfortably pay.
If you are unsure, a convertible term policy keeps your options open. You can switch part of it to permanent coverage later without new health questions, within the policy's window.
How term life insurance works
Term life insurance is simple by design. You choose an amount and a number of years. You pay a premium, which on most policies stays level for the whole term. If you pass away while it is in force, your family receives the benefit, generally income-tax-free.
- Lower cost than permanent coverage for the same amount.
- Fixed length matched to a real need.
- Often convertible to permanent coverage later without new health questions.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares term life insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
Can you change term into whole life?
Most term policies can be converted to a permanent policy for some or all of the amount, without a medical exam, within a set window. This protects you if your health changes.
- Check when the conversion window closes, often at a certain age or policy year.
- Check which permanent products are available for conversion.
- Expect a higher premium for permanent coverage, based on your age at conversion.
What affects the cost of term life insurance?
- Age at purchase. The younger you are, the lower the rate for the whole term.
- Health and history. Conditions, medications and family history affect your rate class.
- Tobacco and nicotine. Usually one of the biggest price factors.
- Coverage amount. More coverage costs more, though the cost per thousand often drops at higher amounts.
- Term length. Longer terms cost more per year.
- Riders. Optional add-ons raise the premium.
- Carrier. Pricing differs between insurers for the same person.
Because insurers weigh these factors differently, comparing several carriers is the simplest way to find a fair price.
Add-ons (riders) that can help
Riders let you shape a policy around your situation. Here are the ones people ask about most. Not every carrier offers each one, and terms differ.
Living benefits
Accelerated benefit riders can pay part of the death benefit early after a qualifying terminal, chronic or critical illness. Many carriers include a terminal illness rider at no added cost.
Waiver of premium
If a covered disability keeps you from working, this rider can keep the policy going without premium payments for as long as the disability lasts, subject to the policy terms.
Return of premium
Pays back the premiums you paid if you outlive the term. It raises the cost, so compare it with a plain term policy before deciding.
Child and spouse riders
Add modest coverage for family members to your own policy. They are convenient, but a separate policy for a spouse is often more flexible.
Is term life right for you?
Often a good fit
- you have a need with an end date and want the most coverage for the money.
- you want to cover a mortgage, income or debts.
Maybe not the right fit
- you want coverage that never expires.
- you want a policy that builds cash value.
