10-year term life insurance

Find out how it works.

Published on : April 8, 2025 | Reviewed by Catherine Malone

What is 10-year term life insurance and how does it work?

A 10-year term life insurance policy helps provide financial protection for your beneficiaries for a fixed period of a decade. If the insured person dies within this 10-year time period, then the beneficiaries will receive a tax-free lump sum payment called the death benefit.

Here's an overview of how these policies typically work:

Fixed Term

Active for exactly 10 years from the policy’s start date.

Fixed Premiums

Your premiums (monthly or annual fees) remain the same for the 10-year term.*

Guaranteed Death Benefit

The payout amount is set at the beginning and doesn't change.*

* The premiums and death benefit remain the same for the 25-year period provided your premiums are paid on time.

  • No coverage after 10 years. The policy ends when the term is up.
  • No cash value. Unlike permanent life insurance, there's no cash value savings component.
  • Age-related cost increases. Renewing or purchasing a new policy after 10 years will likely be more expensive due to your increased age.

Benefits of 10-year term life insurance policies

Affordable

Generally less expensive than permanent life insurance.

Straightforward

Easy to understand life insurance product.

Flexible

Ideal for specific financial obligations like the remainder of mortgage or any debts.

Who needs a 10-year term life insurance policy?

This type of policy is ideal for:

  • Young families needing affordable coverage.
  • People with specific short-term financial obligations.
  • Those wanting to supplement existing life insurance for a set period of time.

Application process for 10-year term life insurance

When you purchase a 10-year term policy, you'll go through the following process:

  1. Application: Either online or through an advisor. You'll provide personal information and may need to undergo a medical exam.
  2. Underwriting: Sun Life assesses your risk factors to determine your premium.
  3. Policy Issuance: Once approved, you'll receive your policy documents outlining the terms.
  4. Premium Payments: You begin paying your premiums to keep the policy active.
  5. Coverage Period: Your beneficiaries are protected for the full 10 years as long as premiums are paid on time.

Get term life insurance

What happens after a 10-year term life insurance policy ends?

At the end of 10 years, the policy terminates unless you choose to: 

  • renew the policy,
  • buy a new term life insurance policy, or 
  • or convert to another type of policy, such as permanent life insurance.

Is a 10-year term life insurance policy right for you?

A 10-year term life insurance policy offers a decade of financial protection for your beneficiaries at an affordable cost. It's a simple, straightforward option for those needing coverage for a specific timeframe. However, it's important to reassess your insurance needs as you approach the end of the term to ensure continued protection for your beneficiaries. 

If you’re not sure what type of insurance is right for you, connect with an advisor for help. An advisor can walk you through all your options and help you figure out which insurance products suit your specific needs and goals.

Additional resources

20-year term life insurance


 

25-year term life insurance

30-year term life

This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.

A Sun Life advisor can help you start the application process. They can also answer any questions you have.

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