The 10 year term life insurance policy is one of the most easily explained and simplest types of life insurance. This policy has a guaranteed level premium and level death benefit for 10 years. With some insurance companies the insured is allowed to renew the policy every 10 years until approximately the age of 75.
If you are looking for a high death benefit at a low premium for a short period of time then the 10 year term life insurance policy is an excellent choice. If you therefore have a need for a large amount of life insurance and you have a limited budget the 10 year term life insurance policy may be an ideal fit for you and your family.
In regards to life insurance there are two basic types, one being term and the other permanent. Term insurance provides life insurance for the amount of time that the policy holder specifies. If the insured dies within the specified time, the face value of the policy will be given to the beneficiary, however if he does not die within that time span and the policy is not renewed, then nothing will be paid out. Permanent life insurance on the other hand, provides insurance protection for the policy holder’s life span, as well as a savings element. There are two common types of permanent insurance: whole life insurance and universal life insurance.
Permanent is more expensive to own than term insurance, however, you should let your family’s need be the determining factor in deciding which type of insurance is best for you, rather than the price.
You have probably heard arguments about how term policies are the better deal or marketing hype regarding cash value policies, but what it really comes down to is each person’s individual situation.