What Is a 10-Year Term Life Insurance Policy?

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Updated: August 10, 2025

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Key Takeaways

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A 10-year term life insurance policy with $250,000 of coverage costs an average of $19 monthly, or $226 per year, for our base profile of a 40-year-old man in average health.

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On average, 10-year term life insurance policies cost $30 for people who are overweight, and $60 for smokers.

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GEICO offers the best average rates for 10-year term life insurance, offering $250,000 policies at $14 per month or $163 per year.

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What Does 10-Year Term Life Insurance Mean?

If you're considering life insurance but need coverage only for a particular timeframe, you're not alone in wanting affordable, temporary financial protection. Term life insurance provides financial protection for your beneficiaries through a guaranteed death benefit over a set time period.

A 10-year term life insurance policy locks in your premium rate for the entire decade while guaranteeing your death benefit remains unchanged. Your coverage stays active as long as you pay premiums on time, providing predictable costs and reliable financial protection for your family's most critical years.

When the 10-year term expires, you have three options: renew coverage at higher age-based rates, convert to permanent life insurance without medical exams, or allow the policy to lapse. This flexibility makes 10-year term coverage ideal for protecting financial responsibilities like mortgages, business loans or children's education expenses that will decrease or disappear within the decade.

How Does a 10-Year Term Life Insurance Policy Work?

Ten-year term life insurance functions with two key features that help you make informed decisions about your financial protection. We analyzed policy documents from major insurers to explain the core mechanics that define this coverage type.

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    Level Premium Guarantee

    Your monthly or annual premium stays fixed for the entire 10-year period. If you're 35 and pay $25 monthly when your policy begins, you'll pay exactly $25 monthly until the term ends at age 45. This level premium structure protects you from rate increases due to aging or health changes during the coverage period.

    Insurance companies set your rates based on risk factors and data analysis. The insurer absorbs the risk of your changing health profile over the decade-long term.

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    Death Benefit Structure

    If you die during the active policy period, your beneficiaries will receive the full death benefit tax-free. A $500,000 policy pays the complete $500,000 regardless of when death occurs, whether in year one or nine. Consult a tax professional regarding your situation, as tax laws may vary.

    The life insurance payout process takes 14 to 60 days after submitting a claim. Beneficiaries submit a death certificate and claim forms to initiate payment. Most insurers offer multiple payout options, including lump sums, installments or interest-earning accounts.

What Happens After 10-Year Term Life Insurance?

A 10-year term life insurance policy expires after a decade. You'll no longer be covered beyond this point. You have three main options that each carry different costs and benefits.

    Renew your existing policy

    You can extend your coverage if you want your beneficiaries to have financial protection after your term ends. Check if your policy has a clause that allows renewal. You can sometimes renew annually up to age 95. You may no longer need to undergo a new physical exam, but your premiums will become more expensive each year.

    Best For: People who still need coverage but want to avoid new medical underwriting due to health changes during the original term.

    Convert your policy

    Most insurance providers include a provision for conversion to a permanent policy, allowing you to exchange your term coverage for whole life or universal life insurance without medical exams. This preserves your insurability even if your health has declined. With this option, you'll have coverage for the rest of your life, and your premium will be fixed.

    Best For: People who need permanent coverage, want to build cash value or have developed health conditions that make new policies difficult to obtain.

    Buy new insurance

    You can also buy a different policy. This can help you find better rates than renewing, especially if you're healthy. However, purchasing new coverage means you'll need to complete a new application and medical exam.

    Best For: People in good health who want longer-term coverage at competitive rates.

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YOU CAN LET YOUR COVERAGE LAPSE

If you don't need life insurance after the 10-year term, you can let your coverage lapse by doing nothing. This works well for people with grown, financially independent children; substantial assets that eliminate the need for life insurance; or paid-off mortgages and debts.

Choosing this means you'll no longer have coverage, and your family won't get death benefits if you die. Consider the pros and cons, and how this choice will affect your family.

How Much Is a 10-Year Term Life Insurance Policy?

Insurance companies determine term life insurance rates based on individual factors, including age, lifestyle, health, chosen coverage level and company. The tables below show average rates for different profiles and needs.

10-Year Term Life Insurance Rates by Age and Coverage Amount

Your age affects the cost of your insurance. Premium rates rise with age due to decreasing life expectancy. Here's what you'll likely pay at different ages:

Data filtered by:Results filtered by:
Select
Age:40
Select
Gender:Male
$100,000$11$130
$150,000$16$189
$200,000$19$223
$250,000$19$226
$300,000$22$254
$350,000$22$267
$400,000$28$323
$450,000$28$332
$500,000$33$375
$550,000$29$356
$600,000$40$456
$650,000$34$415
$700,000$41$331
$750,000$48$573
$800,000$52$593
$850,000$44$534
$900,000$57$659
$950,000$49$594
$1,000,000$61$698
$1,100,000$44$539
$1,200,000$48$585
$1,250,000$64$771
$1,300,000$52$631
$1,400,000$56$676
$1,500,000$90$1,038
$1,600,000$63$768
$1,700,000$67$814
$1,800,000$71$859
$1,900,000$74$905
$2,000,000$117$1,351
$2,100,000$116$1,408
$2,200,000$116$1,408
$2,300,000$116$1,408
$2,400,000$116$1,408
$2,500,000$148$1,093
$2,600,000$116$1,408
$2,700,000$116$1,408
$2,800,000$116$1,408
$2,900,000$116$1,408
$3,000,000$175$2,007

10-Year Term Life Insurance Cost if You Smoke

A healthy lifestyle helps lower your premiums. Smokers have higher rates because of the health risks associated with smoking.

Data filtered by:Results filtered by:
Select
Age:40
Select
Gender:Male
$100,000$35$425
$150,000$50$603
$200,000$62$746
$250,000$60$716
$300,000$71$854
$350,000$87$1,052
$400,000$90$1,085
$450,000$108$1,307
$500,000$103$1,236
$550,000$92$1,109
$600,000$127$1,530
$650,000$107$1,294
$700,000$145$1,748
$750,000$150$1,808
$800,000$166$1,990
$850,000$138$1,663
$900,000$184$2,212
$950,000$153$1,848
$1,000,000$192$2,307
$1,250,000$300$3,617
$1,500,000$292$3,504
$2,000,000$368$4,418
$2,500,000$496$5,953
$3,000,000$547$6,574

Cost of 10-Year Term Life Insurance for People Who Are Overweight

Insurance companies have health rating classifications to help determine rates. People who are overweight are charged slightly higher premiums. Filter the table below to see the average 10-year term life insurance costs by age, gender and coverage level.

Data filtered by:Results filtered by:
Select
Age:40
Select
Gender:Male
$100,000$18$208
$150,000$25$304
$200,000$31$357
$250,000$30$363
$300,000$36$407
$350,000$35$428
$400,000$45$518
$450,000$44$533
$500,000$52$602
$550,000$47$572
$600,000$64$731
$650,000$55$667
$700,000$65$531
$750,000$76$919
$800,000$83$952
$850,000$71$857
$900,000$92$1,058
$950,000$79$953
$1,000,000$97$1,120
$1,100,000$71$865
$1,200,000$77$939
$1,250,000$103$1,237
$1,300,000$83$1,012
$1,400,000$89$1,086
$1,500,000$145$1,666
$1,600,000$101$1,232
$1,700,000$107$1,306
$1,800,000$113$1,379
$1,900,000$119$1,452
$2,000,000$189$2,168
$2,100,000$185$2,259
$2,200,000$185$2,259
$2,300,000$185$2,259
$2,400,000$185$2,259
$2,500,000$238$1,754
$2,600,000$185$2,259
$2,700,000$185$2,259
$2,800,000$185$2,259
$2,900,000$185$2,259
$3,000,000$281$3,221

Average Cost of 10-Year Term Life Insurance by Company

MoneyGeek analyzed average rates from different insurers to help you find the best life insurance companies for a 10-year term policy. GEICO offers the lowest price for a policy with $250,000 coverage at $14 per month or $163 per year. Here's how rates compare among insurance companies:

Data filtered by:Results filtered by:
Select
Coverage Level:$250,000
Geico (Lifequotes.com)$14$163
Protective Insurance$14$166
Lincoln Financial$14$165
AAA$16$193
Fidelity Life$17$205
North American$18$211
Midland National$18$211
TransAmerica$18$211
CoreBridge$18$211
Principal National$18$214
Gerber Life (Fabric)$18$217
Securian$18$217
Cincinnati Life$18$220
Legal&General$18$220
Pacific Life$18$220
Guardian Life$19$225
SBLI$20$239
Columbus Life$20$243
Foresters Financial$21$249
Assurity$21$251
Nationwide$21$257
Life Insurance Co of The South West$21$255
National Life Group$21$255
Mutual of Omaha$22$266
Prudential$23$282
John Hancock$26$311

*Rates are based on averages for a 40-year-old man with average health.

10-Year Term Life Insurance Rates by Company for Smokers

Average rates for smokers are higher than those of non-smokers. Based on our study, GEICO offers the cheapest life insurance rates for smokers with $250,000 coverage at $23 per month. The table below compares 10-year term life insurance rates for smokers.

Data filtered by:Results filtered by:
Select
Coverage Level:$250,000
Geico (Lifequotes.com)$23$274
Protective Insurance$49$590
Fidelity Life$51$612
Legal&General$58$699
North American$49$594
Pacific Life$60$719
Midland National$49$594
Assurity$60$718
AAA$50$601
Nationwide$64$771
Columbus Life$52$616
Guardian Life$63$751
Securian$53$630
Cincinnati Life$57$686
SBLI$62$751
TransAmerica$57$684
Mutual of Omaha$65$780
Foresters Financial$65$778
Gerber Life (Fabric)$84$1,017
Lincoln Financial$61$726
Principal National$68$820
CoreBridge$57$680
John Hancock$84$1,012
Prudential$70$838
Life Insurance Co of The South West$70$835
National Life Group$70$835

*Rates are based on averages for a 40-year-old man with average health.

Lowest 10-Year Term Life Insurance Rates for Those Who Are Overweight

Insurance providers charge slightly higher premiums for people who are overweight because excess weight increases the likelihood of health issues that can impact life expectancy. Your most affordable provider will depend on the coverage amount you select.

The table below shows the cheapest life insurance companies for 10-year term policies for people who are overweight.

Data filtered by:Results filtered by:
Select
Coverage Level:$250,000
Geico (Lifequotes.com)$22$262
Protective Insurance$22$267
Lincoln Financial$22$265
AAA$26$310
Fidelity Life$28$330
North American$28$338
Midland National$28$338
TransAmerica$28$338
CoreBridge$28$338
Principal National$29$343
Gerber Life (Fabric)$29$348
Securian$29$348
Cincinnati Life$29$353
Legal&General$29$353
Pacific Life$29$353
Guardian Life$30$361
SBLI$32$384
Columbus Life$33$390
Foresters Financial$33$399
Assurity$33$403
Nationwide$34$412
Life Insurance Co of The South West$34$409
National Life Group$34$409
Mutual of Omaha$36$428
Prudential$38$453
John Hancock$41$499

*Rates are based on averages for a 40-year-old man with average health.

Factors Affecting 10-Year Term Life Insurance Rates

These factors affect your 10-year term life insurance cost and help you choose the best life insurance policy for your needs.

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    Age

    Younger people get lower premium prices than older adults.

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    Health History

    People with a history of health problems pay higher rates.

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    Current Health

    Most insurers require a medical exam for term life insurance applicants. The test results affect the cost of your insurance.

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    Body Mass Index (BMI)

    BMI scores categorize people into weight classes. People with obesity pay higher premiums because they're at higher risk for medical conditions.

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    Smoking

    Smokers pay more expensive premiums than nonsmokers because they have a higher risk of developing illnesses.

Is a 10-Year Term Life Insurance Policy Right for You?

Deciding whether you need life insurance coverage can feel overwhelming, especially when weighing costs against your family's financial security. A 10-year term life insurance policy gives your loved ones a reliable source to cover financial needs if you pass away within the term, making it an ideal solution for temporary but critical financial responsibilities. It's also suitable for people who want a more affordable policy while preparing for permanent coverage in the future, like whole life or universal life insurance.

A 10-year term life policy works well in these situations:

  • New Homeowners with Large Mortgages: First-time buyers or those with significant mortgage debt who want to ensure their family can pay off the home loan if they die during the first decade of homeownership.
  • Young Parents with Growing Children: Families with infants or young children who need maximum coverage during the expensive early parenting years, when costs for daycare, education and living expenses are highest.
  • Business Owners with Short-Term Debt: Entrepreneurs with business loans, equipment financing or partnership agreements that create temporary financial obligations lasting less than 10 years.
  • Recent Graduates with Student Loans: Young professionals carrying substantial student debt who want to protect co-signers or spouses from inheriting educational loan obligations.
  • Planning Future Permanent Coverage: People who need immediate protection but plan to purchase whole life or universal life insurance within the next decade, using a 10-year term as affordable bridge coverage.
  • Parents Funding College Education: Families with teenagers approaching college age who need coverage specifically for tuition and education expenses during the upcoming 10-year period.
  • Couples with Temporary Income Replacement Needs: Dual-income households where one spouse's income is critical for a particular time period, such as while the other spouse completes education or training programs.

Pros and Cons of 10-Year Term Life Insurance

Coverage lasts only until the end of the term. If the insured dies within the 10-year period, their designated beneficiary will receive a lump-sum payment as stated in the policy. This amount is usually tax-free. After 10 years, the policy expires.

The pros and cons below help determine if a 10-year term policy suits your circumstances.

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PROS

  • Affordable premiums
  • Guaranteed rates during the term
  • Flexible (can be renewed or converted)
  • Can be used as collateral for personal loans
  • Tax-free death benefits
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CONS

  • Premiums increase with age at renewal
  • No cash value
  • Short-term coverage

How to Find the Best 10-Year Term Life Insurance Policies

Finding the right 10-year term policy requires comparing rates, understanding the application process and knowing what insurers evaluate. We created this shopping guide to help you get started.

  1. 1

    Calculate Your Coverage Needs

    The right coverage amount depends on your family's needs. A common approach is to multiply your annual income by 10, then add any outstanding debts, such as a mortgage.

    For example, someone earning $60,000 with a $200,000 mortgage might need $800,000 in coverage. Factor in temporary financial obligations ending within 10 years, such as college funding or loan balances.

  2. 2

    Get Quotes from Multiple Insurers

    Rates can vary widely, even for identical coverage. Compare quotes from at least three insurers to find affordable life insurance for the coverage amount you need.

    Also look into each company's financial strength and claims-paying track record to ensure long-term reliability. Some insurers offer additional benefits or policy riders that provide more value for your needs.

  3. 3

    Choose Between Full Underwriting or No-Exam Options

    Depending on the insurer, you can choose a policy that requires full underwriting or no medical exam. Availability is often based on coverage amount and health status. 

    • Full Underwriting: Most applicants with larger coverage amounts need to undergo full underwriting. This process includes medical exams, so expect 30–45 days for approval. Full underwriting policies are more affordable than no-exam plans.
    • No-Exam Policies: No-medical-exam life insurance is available for smaller coverage amounts but costs more than fully underwritten policies. Approval takes 7–14 days. Some policies include waiting periods for full benefits during the initial policy years.
  4. 4

    Complete Your Application and Medical Requirements

    Gather essential documents based on your chosen insurer's application requirements. Also prepare the information for your life insurance beneficiary.

    If your policy requires a medical exam, a trained paramedical professional will visit your home or office at no cost. The examiner collects your height, weight, blood pressure and samples for blood and urine tests, typically in under 30 minutes. To ensure accurate lab results, avoid caffeine for 24 hours and fast for 8 hours beforehand if blood work is included. Be ready to discuss current medications during the application.

  5. 5

    Review and Confirm Policy Details

    Once the insurer approves your application, you'll receive an offer outlining your coverage terms, rates and policy features. Before accepting, review key elements like conversion options, renewal provisions and available riders.

    Some insurers offer flexible terms or built-in benefits such as accelerated death benefits. Read the contract carefully to ensure you understand premium guarantees, how and when you can renew, and how to update your beneficiary designations.

10-Year Term Life Insurance Quote

Before buying a 10-year term life insurance policy, estimate how much you might pay based on age, health and coverage amount. Use the quote calculator below to compare rates and narrow down the most cost-effective options for your needs.

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What Is 10-Year Term Life Insurance: Bottom Line

A 10-year term life insurance policy offers affordable, time-limited coverage ideal for short-term financial needs like mortgage protection or income replacement.

Our research shows 10-year term policies cost less than longer-term options while providing the same death benefit protection. This cost-effective approach works best when you need substantial coverage amounts for shorter time periods, making it a smart choice for young families, new homeowners or anyone with temporary financial obligations requiring protection.

After the term ends, you can renew annually, convert to permanent coverage or buy a new policy, though costs will likely rise.

Compare Life Insurance Rates

Ensure you are getting the best rate for your life insurance. Compare quotes from the top insurance companies.

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10-Year Term Life Insurance Policy: FAQ

Below are answers to commonly asked questions about 10-year term life insurance:

How does a 10-year term life policy work?

What happens if I stop paying premiums?

Can I cancel my policy early?

How much does a 10-year term policy cost?

Do premiums increase during the 10-year term?

How long does it take to get approved?

Can term life be extended after 10 years?

Can I convert to permanent life insurance?

Best 10-Year Term Life Insurance Rates: Our Ratings Methodology

Ten-year term life insurance works well if you need temporary coverage for a specific debt or financial obligation. We analyzed rates from major insurers to help you find affordable options without paying for longer coverage periods you might not need.

Sample Customer Profile

We used a 40-year-old male non-smoker as our baseline for comparing rates across companies. This profile represents someone likely evaluating term life insurance for mortgage protection or family security:

  • Height and weight: 5 feet 9 inches, 160 pounds
  • Health rating: Average
  • Smoking status: Non-smoker

Coverage Analysis Process

We collected quotes from companies with broad national coverage and online quoting capabilities, ensuring you can access the rates we found. Beyond our standard profile, we modified age, gender, height, weight, health ratings and geographic location to capture rate variations across customer types.

Our analysis included multiple term lengths and coverage amounts to identify patterns in pricing structures. This approach revealed trends that extend beyond individual quotes, helping us project which companies consistently offer competitive rates for 10-year terms.

What This Means for Your Decision

These companies earned their rankings based on actual premium costs. If your profile differs from our sample (you're younger, older, or have health considerations), your rates will vary, but our rankings provide a reliable starting point for comparison shopping.

The cheapest option for our sample profile represents real savings potential, but the lowest price only matters if the company can pay claims when your family needs it most.

Life Insurance 10-Year Term: Related Articles

About Mark Fitzpatrick

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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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