Why would one buy 10 year term insurance? There are many types of term life insurance policies to choose from, why 10 year term life insurance. If you have a short term need for life insurance you may want to consider 10 year term. Let us look at some of the possibilities.
You Have Outstanding Debt
You have outstanding debt which you want to pay off if you should suddenly die, you don't want your loved ones to be left with the burden of that debt.
You Have An Outstanding Mortgage
You have a balance owed on your mortgage. You have done pretty well so far but you have 10 more years to go. You are getting a bit uncomfortable as you get older.
You don't want to wait any longer before buying some life insurance. You don't have too much extra cash so the 10 year term policy appeals to you, it is quite inexpensive.
If need be you can later convert your 10 year term insurance policy to permanent life insurance, like whole life, universal life or variable universal life insurance.
Your partner died. All the weight of raising the children is now on your shoulders. You do pretty well but you need some cheap life insurance.
The 10 year term insurance policy with the option to convert is a good choice. Check with the company to find out within what period you are required to convert without evidence of insure-ability, that is without a medical exam or any health check at all.
10 year term life insurance can be of great assistance to people in the above situations. The death benefit remains level for the duration.
In other words, if you should die anytime within the 10 year period the full face amount will be paid to your beneficiary.
This money can be paid in one lump sum or in the form of an income. The premiums are level throughout, they never increase.
Some people like to add the waiver of premium rider to the 10 year term life insurance policy.
This rider guarantees that if you should become disabled, any time after 6 months of disability, the life insurance company will waive the premiums for as long as you are disabled even if it is for the balance of the duration of the policy.
The waiver of premium rider is very inexpensive, but can really be worth the cost.
You may also want to add the accidental death benefit rider as well. This rider states that if you should die in an accident the company will pay you family twice the face amount of the policy.
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