March, 25 2017

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10-Year Level Term Life Insurance Review

10-Year Level Term Life Insurance Review

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  • 10-Year Level Term

10-Year Level Term Life Insurance Review

Pros: Cheap– The ten year level term is the cheapest term length available (from the four most common term policy options of: 10, 15, 20 and 30 years).  Fixed rate– As with all the different term lengths, level term life insurance locks in the rate preventing any rate increases during the selected term.   No pre-payment penalty– A great feature of level term life insurance is the fact that you can cancel the policy anytime without penalty.  Conversion– Most level term life insurance policies now offer the option to convert your term policy into a permanent policy without a health exam or any medical questions.

Cons: Duration may not be ideal for many people–  Since level term life insurance allows the insured to lock in the rate for the entire term, many people, especially those looking to protect a; dependent child, spouse, mortgage or an elderly parent may be better suited to choose a term longer than 10 years.   This will prevent any rate increases due to aging or any changes in weight, medications or health conditions during the selected term. 

Bottom Line: A 10-year level term life insurance policy is the least expensive term option out of the four main term lengths.  This is ideal for those who don’t need or can’t afford a longer term length but still need the protection.  These insured’s are often those with; teenage dependent children, who need a buy-sell agreement, a bank loan, a divorce decree, to protect a child while they are in college, have a short time remaining on a mortgage or a couple looking to protect their income for just a few years. 

However, for most people, especially those with young children, a longer term would be recommended.  Since no one will ever be younger then they are today and most people won’t be as healthy (i.e. weight, medications, health conditions) as they are today, locking into a 15, 20 or 30 year term is often a better choice. 

 How much does a 10-year level term life insurance policy cost?

Let’s take a look at the sample rates for a 10-year level term policy for a man and woman at each company’s second best rating class (preferred), non-smoker.

Age 25

$100,000-10-year level term= Man-$8.04-Woman-$7.60

$250,000-10-year level term= Man-$17.40-Woman-$10.00

$500,000-10-year level term= Man-$21.35-Woman-$13.75

$750,000-10-year level term= Man-$23.49-Woman-$17.50

$1,000,000-10-year level term= Man-$28.71-Woman-$21.25

Age 35

$100,000-10-year level term= Man-$8.14-Woman-$7.69

$250,000-10-year level term= Man-$11.89-Woman-$10.88

$500,000-10-year level term= Man-$18.34-Woman-$16.21

$750,000-10-year level term= Man-$24.65-Woman-$21.41

$1,000,000-10-year level term= Man-$30.26-Woman-$26.10

 Age 45

$100,000-10-year level term= Man-$12.63-Woman-$11.25

$250,000-10-year level term= Man-$21.53-Woman-$19.69

$500,000-10-year level term= Man-$37.41-Woman-$34.20

$750,000-10-year level term= Man-$53.51-Woman-$47.70

$1,000,000-10-year level term= Man-$65.61-Woman-$57.95

Age 55

$100,000-10-year level term= Man-$23.45-Woman-$18.08

$250,000-10-year level term= Man-$46.59-Woman-$35.88

$500,000-10-year level term= Man-$86.57-Woman-$65.59

$750,000-10-year level term= Man-$127.24-Woman-$95.92

$1,000,000-10-year level term= Man-$146.13-Woman-$123.54

Age 65

$100,000-10-year level term= Man-$58.47-Woman-$27.20

$250,000-10-year level term= Man-$128.19-Woman-$80.28

$500,000-10-year level term= Man-$250.26-Woman-$147.51

Age 75

$100,000-10-year level term= Man-$189.53-Woman-$118.25

$250,000-10-year level term= Man-$395.12-Woman-$254.98

 

10-year level term conclusion

As you can see from our 10-Year Level Term Life Insurance Review, a 10-year term is very affordable at nearly any age.  However, just because it is the least expensive, doesn’t necessarily mean it’s the best term length for your situation.  For those who will need to protect their loved ones for a period greater than ten years will benefit in the long run by locking in a longer term upfront.  This will hedge your bet, so to speak, to ensure that any changes in your age health won’t affect your rate.  Make sure you work with a knowledge agent who will conduct a needs analysis to help you determine the best term length, coverage amount and company for your budget.

Summary
Review Date
Reviewed Item
10-Year Level Term Life Insurance
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4