Updated: November 20, 2024
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Term life insurance serves as a financial safety net for your beneficiaries, offering a set death benefit over a defined time frame. A 10-year term policy features level premiums and a guaranteed death benefit, maintaining coverage as long as you meet your premium obligations. At the term's end, you can renew the policy, transition to permanent coverage or let it lapse. This straightforward, cost-effective option is ideal for those seeking short-term financial protection.
Generally, 10-year term life insurance rates vary based on different factors. The average cost of 10-year term life policies for a 30-year-old non-smoker male with $250,000 coverage is $14. For smokers, the average premium for a similar policy is approximately $30.
Those in poor health may also have more expensive premiums. For a similar policy and profile, the average cost, if you have poor health, is $15. Compare quotes from multiple insurance providers to find the best policy and price.
Various factors can affect your 10-year term life insurance cost. Understanding these factors can help you choose the best life insurance policy for your needs.
Age
Typically, younger individuals get lower premium prices compared to older adults.
Health History
Those with a history of certain health problems may have more expensive rates.
Current Health
Most insurers, if not all, require a medical exam for applicants who want to purchase a term life insurance policy. The results of the tests can affect the cost of your insurance.
Body Mass Index (BMI)
BMI scores categorize people into weight classes. Obese people tend to be at higher risk for various medical conditions, so they pay higher premiums.
Smoking
Smokers are considered to have higher risks for various illnesses. So, they often have more expensive premiums than non-smokers.
Your age can significantly affect the cost of your insurance. Premium rates rise with age due to decreasing life expectancy. Check the table below to see how prices change depending on age.
| 30-Year-Old | $14 | $20 | $35 |
| 40-Year-Old | $18 | $29 | $53 |
| 50-Year-Old | $37 | $65 | $117 |
| 60-Year-Old | $76 | $141 | $271 |
| 70-Year-Old | $204 | $410 | $719 |
Insurance companies have health rating classifications to help determine rates. Having a healthier lifestyle can also help lower your premiums. Smokers have higher rates because of the various health risks of smoking. Individuals with generally poor health are also charged higher premiums.
| 30-Year-Old | $30 | $48 | $83 |
| 40-Year-Old | $41 | $68 | $125 |
| 50-Year-Old | $83 | $151 | $276 |
| 60-Year-Old | $169 | $329 | $638 |
| 70-Year-Old | $451 | $957 | $1694 |
MoneyGeek analyzed average rates from various insurers to help you find the best life insurance companies for a 10-year term policy. Allstate offers the lowest price for a policy with $250,000 coverage at $12 per month. Transamerica has the cheapest average monthly rates for both $500,000 and $1 million coverage amounts at $17 and $26, respectively. The table below shows how prices compare among insurance companies.
| Allstate | $12 | $18 | $29 |
| Transamerica | $12 | $17 | $26 |
| GEICO | $13 | $19 | $26 |
| Protective | $13 | $20 | $31 |
| Nationwide | $16 | $22 | $33 |
| Mutual of Omaha | $17 | $26 | $46 |
| Prudential | $17 | $32 | $63 |
| AAA | $17 | $25 | $42 |
| Fidelity | $20 | $32 | $93 |
| Haven | $22 | $38 | $70 |
| State Farm | $22 | $31 | $48 |
| Bestow | $27 | $48 | $88 |
| Progressive | $31 | $52 | $93 |
| Gerber | $76 | N/A | N/A |
Average rates for smokers are higher than those of non-smokers. Based on MoneyGeek's analysis, Allstate offers the most affordable rate for smokers with $250,000 coverage. The average cost of an Allstate policy is $27 per month. For higher coverage amounts, Transamerica has the cheapest options for individuals who smoke. The cost of a Transamerica policy averages $41 per month for $500,000 in coverage and $62 per month for $1 million.
| Allstate | $27 | $42 | $68 |
| Transamerica | $27 | $41 | $62 |
| GEICO | $28 | $44 | $62 |
| Protective | $29 | $46 | $73 |
| Nationwide | $36 | $51 | $77 |
| Mutual of Omaha | $37 | $60 | $108 |
| Prudential | $37 | $75 | $149 |
| AAA | $38 | $58 | $99 |
| Fidelity | $45 | $74 | $218 |
| Haven | $49 | $89 | $165 |
| State Farm | $49 | $72 | $113 |
| Bestow | $60 | $111 | $207 |
| Progressive | $68 | $121 | $218 |
| Gerber | $169 | N/A | N/A |
Insurance providers charge people with poor health more because they're at an increased risk of early death. If you have a poor health profile, your cheapest option depends on the coverage level you choose.
For a 10-year term policy with $250,000 coverage, Allstate has the lowest average premium at $13 monthly. Transamerica offers the cheapest rates for $500,000 coverage at $21 per month and $1 million coverage at $32 per month.
| Allstate | $13 | $22 | $36 |
| Transamerica | $13 | $21 | $32 |
| GEICO | $14 | $23 | $32 |
| Protective | $15 | $24 | $38 |
| Nationwide | $18 | $27 | $40 |
| Mutual of Omaha | $18 | $31 | $56 |
| Prudential | $19 | $40 | $78 |
| AAA | $19 | $31 | $52 |
| Fidelity | $23 | $39 | $114 |
| Haven | $24 | $47 | $87 |
| State Farm | $24 | $38 | $59 |
| Bestow | $30 | $58 | $108 |
| Progressive | $34 | $63 | $114 |
| Gerber | $85 | N/A | N/A |
Older adults tend to have higher premium rates as well. However, various insurance companies set their rates differently. The table below shows how rates vary and which insurance companies offer the cheapest life insurance option for older buyers for different coverage amounts.
| Allstate | $24 | $40 | $69 |
| Transamerica | $24 | $40 | $70 |
| GEICO | $25 | $40 | $70 |
| Protective | $26 | $44 | $78 |
| Mutual of Omaha | $29 | $51 | $97 |
| Nationwide | $29 | $49 | $87 |
| Prudential | $31 | $54 | $92 |
| State Farm | $36 | $56 | $101 |
| AAA | $37 | $64 | $107 |
| Haven | $46 | $86 | $164 |
| Bestow | $51 | $91 | $174 |
| Progressive | $63 | $113 | $208 |
| Fidelity | $63 | $113 | $208 |
| Gerber | $145 | N/A | N/A |
Choosing a 10-year term life insurance policy gives your loved ones a source to cover specific financial needs if you pass away within the term. A 10-year term policy provides coverage for a temporary financial risk, such as a mortgage, business or short-term loan. It is also an ideal option for those who want a more affordable policy while preparing for a policy with permanent coverage in the future, like whole life or universal life insurance.
There are many situations when a 10-year term life policy can be beneficial. For instance, couples financing a home can use it to cover mortgage payments or even pay it off entirely if one of them passes away unexpectedly. And young families can use a 10-year term policy to pay for credit cards, daycare, loans and living expenses. It can also be used for financial milestones, including tuition and wedding expenses.
The death benefit coverage of the policy also only lasts until the end of the term. For example, if the insured dies within the 10-year period, their designated beneficiary will get a lump-sum payment as stated in the policy. This amount is often tax-free. After 10 years, the policy expires.
Check out the pros and cons below to help you determine if a 10-year term policy is the right choice for your circumstances.
A 10-year term life insurance policy expires after a decade. You'll no longer be covered beyond this point.
Some people choose not to get another life insurance policy once their term ends, such as those with adult children who are financially independent or if the policyholder already has enough assets to take care of their loved ones.
That may not be the case for everyone. If you want your beneficiaries to have financial protection after your term ends, you can extend or convert your coverage. You can also choose to buy a new policy.
Check if your policy has a specific clause that allows renewal. It is sometimes possible to renew annually up to age 95. You may no longer need to undergo a new physical exam, but your premiums may become more expensive each year.
Most insurance providers include a provision for conversion to a permanent policy. If you choose this, you will have coverage for the rest of your life, and your premium will be fixed.
Another option is for you to buy a different policy. Make sure you consider your situation when choosing the best coverage.
Understanding 10-year term life insurance can help you search for the best policy. Knowing the answers to some of the most commonly asked questions about this form of coverage can help you in your search.
A 10-year term life insurance policy is an agreement wherein the policyholder pays premiums for a decade in exchange for a death benefit that the insurance company will give to their beneficiaries upon the insured's death. It can also be used as an investment to cover specific financial needs. If the insured is still alive at the end of the 10-year term, the policy expires.
The cost of a 10-year term policy depends on various factors. Your age, health history, current health and lifestyle are just some of the factors used to determine your premiums. On average, the monthly cost of $250,000 coverage for a 30-year-old nonsmoking male is $14. For smokers, the average rate for a similar policy is $30 per month. People with poor health pay an average of $15 per month.
Yes, you can extend your coverage. Policyholders have the option to extend coverage after 10 years. Some insurers offer an annual renewal option up to the age of 95. Your insurance premium may increase every year. You can also opt to convert to a permanent policy if your term policy has a specific clause for this purpose.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
