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Choosing between Term 10 and Term 20 life insurance usually comes down to one main question: how long do you expect to need coverage?
Both options provide temporary life insurance with fixed premiums for the selected term. The biggest difference is how long your rate and coverage period are locked in.
So, which one makes more sense for you? Let’s compare the pros, cons, costs, and situations where Term 10 or Term 20 may be a better fit.
Here’s a quick side-by-side look at how the two options compare.
| Feature | Term 10 Life Insurance | Term 20 Life Insurance |
|---|---|---|
| Initial coverage period | 10 years | 20 years |
| Premiums | Fixed for 10 years | Fixed for 20 years |
| Starting cost | Usually lower | Usually higher |
| Best suited for | Shorter-term financial needs | Longer-term financial needs |
| Good for | Shorter mortgages, debts, temporary income protection | Mortgages, young families, longer income protection |
| Renewable | Yes, subject to policy terms | Yes, subject to policy terms |
| Convertible | May be converted to permanent coverage, subject to policy terms | May be converted to permanent coverage, subject to policy terms |
In simple terms: Term 10 may be a better fit if you only need coverage for a shorter period, while Term 20 gives you longer-term protection and keeps your premium fixed for twice as long.
Term 10 life insurance provides coverage for 10 years at a fixed premium. Your rate stays the same throughout the initial 10-year term, making your monthly cost predictable.
When the 10 years are over, you may be able to renew the policy, depending on its terms. However, the new premium will usually be higher because it is based on your age at renewal. Another option may be to apply for a new policy, which could involve a new health assessment.
Pros and cons of Term 10 life insurance
Pros
Cons
Who is Term 10 life insurance a good fit for?
Term 10 may make sense if you expect your need for life insurance to decrease within the next decade.
For example, it may suit someone with 8–10 years left on a mortgage, someone paying off temporary debts, parents whose children are close to becoming financially independent, or anyone who expects to need less coverage in the near future.
Term 20 life insurance provides coverage for 20 years with a premium that stays fixed for the initial term. This gives you longer-term protection and more predictability without having to think about renewal after only 10 years.
When the 20-year term ends, you may be able to renew the policy at a higher rate, depending on the policy terms, or explore other coverage options.
Pros and cons of Term 20 life insurance
Pros
Cons
Who is Term 20 life insurance a good fit for?
Term 20 may be a good fit if you expect to need coverage for many years.
For example, it can work well for parents with young children, someone who has recently taken on a mortgage, families that rely heavily on one or both incomes, or anyone who wants to lock in a predictable premium for a longer period.
When a Term 10 or Term 20 life insurance policy ends, you may have several options. You may be able to renew the policy at a higher premium, convert it to permanent life insurance if your policy allows, or apply for a new term policy.
A new policy may require a fresh application and health assessment, depending on the insurer and your eligibility.
Read about all the options in detail in our dedicated article: What Happens When Your Term Life Insurance Ends? What to Do Next
Yes, but in many cases, moving from a Term 10 policy to a new Term 20 policy means applying for new coverage.
Your eligibility and new rate may depend on your age and health at that time. Some policies may offer renewal, conversion, or other options, but these features vary by insurer and policy.
Before making a change, check your policy details or speak with a licensed advisor to understand which options are available and whether a new application is required.
Sometimes the easiest way to compare Term 10 and Term 20 life insurance is to look at how each may fit different life stages.
Example 1: Age 55, with 8 years left on a mortgage
A Term 10 policy may line up well with that shorter financial obligation and provide coverage while the mortgage is still being paid.
Example 2: Age 38, with young children and a new mortgage
A Term 20 policy may provide protection through more of the years when family expenses and income needs are likely to be higher.
*These examples are for illustration only. The right term length depends on your age, budget, financial responsibilities, and how long you expect to need coverage.
The right term depends on your needs, budget, and how long you want your coverage to last.
Ask yourself:
Term 10 may suit shorter-term needs, while Term 20 can offer more long-term predictability. The best choice will depend on your individual situation.
Apply for a custom quote today and speak with a licensed advisor to find the coverage that best fits your needs.
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