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10 Year Term Life Insurance


 10 year term life insurance is a type of life insurance defined by it’s premium structure. 10 year term has premiums that are level for 10 years.
At the end of the initial 10 year term, if the policy is not renewable then it expires – you’re out of coverage (you should never accept a term 10 policy that is not renewable, unless you have no other choice, not at any price).
If the term policy is renewable, then the policy continues in force with level coverage, but the premiums increase.
Renewable term 10 premiums increase at the end of the first 10 years in different ways with different companies. Commonly though, premiums will increase annually, every year until the policy expires. At the point of premium increase the premiums are high that they become unaffordable for most people. Therefore you should expect to keep a term 10 policy only for 10 years – if you need life insurance longer than 10 years you should consider a term 20 or term 30 policy instead.
Term 10 life insurance is suitable for Canadians who need life insurance for about 10 years – and then who don’t require life insurance after that (because if you need life insurance after that point you should be considering a 20 year term policy instead so you don’t have to repurchase life insurance and take a new medical exam in 10 years). People in their late 40’s and early 50’s who still have family financial obligations are a good fit for 10 year term.
Canadians who purchase 10 year term expecting to not need life insurance after that time often change their mind (particularly if they become uninsurable). Therefore you should only consider a term 10 policy that is convertible – that way you can ‘convert’ your term life insurance to permanent life insurance without a medical exam if you become uninsurable.
Term 10 has some other benefits, we suggest you read our article on Term Life Insurance Exchange Option for more information and specifics.