Term Life

If a life insurance policy is called term insurance, the coverage lasts for a specific period. At the end of this period, the insured might have the option to renew the policy, or the policy may simply expire.

Time Frame

A 10-year term life insurance policy in effect for that time only. Life insurance policies can be for less time, such as five years, or more, such as 15 or 20 years.

Level

If a term life insurance policy has a designation of "level," the face value of the insurance or the amount that the policy pays upon death remains constant over the term of the policy. For example, a $20,000, 10-year level term policy would pay $20,000 if the insured died during the first year, the 10th year or anytime in between.

Cost

In exchange for the coverage provided by a 10-year level term life insurance policy, the insured is required to pay a premium, or fee, monthly, every few months or annually. The cost of a 10-year level term life insurance policy varies depending on the amount of the death benefit and the age and general health of the insured.

Benefits

Term life insurance policies typically are less expensive than other types of health insurance.

Considerations

A 10-year level term life insurance policy might not be the best solution for your situation. Consult a licensed insurance professional to discuss your options.

Source:

Insurance Information Institute: Life Insurance Basics