One of the most popular types of term life insurance in Canada, 10 year term life insurance has premiums that are level for 10 years.
After 10 years, a typical policy would remain in force and active, but with premiums that increase substantially. And so on, every 10 years until the policy expires. However at this point (at ‘renewal’) the premiums increase a lot – to the point where it would be unaffordable. Therefore a 10 year term policy is best for insurance needs that are only good for 10 years.
When should you buy a term 10 life insurance policy? The simple answer is whenever you need insurance for 10 years or less. If you need life insurance for longer than 10 years you should look at a 15 or 20 year term life insurance policy.
Examples of this would be a 50+ year old looking to cover a small mortgage prior to retirement. 10 year term is also commonly used for business life insurance because 10 years is pretty much forever in the business world.
For the most part 10 year term policies are relatively comparable and thus you should focus heavily on the least expensive premiums – though you may want to read best types of term life insurance for some thoughts on things you may want to look at in your term 10.