10-Year Term Life Insurance: What You Need to Know

When people look up a 10-year term life insurance plan, it’s usually for one of two reasons: they want something affordable, or they’re trying to solve a very specific, time-bound financial problem. That instinct isn’t wrong because not every life situation needs decades of coverage.

But life insurance is also about anticipating how long people will depend on your income. In this article, we break down what a 10-year term life insurance policy really offers and when it genuinely makes sense.

This illustrative premium comparison is based on a sum assured of ₹2 crore for a 30-year-old non-smoker male.

Key Insight: While the premium does increase slightly as the policy term extends, the jump is relatively gradual compared to the protection you gain. This shows that choosing a short 10-year term may save a little today but leaves you exposed later, whereas a longer term locks in long-term financial security at a marginally higher cost.

For a more detailed look at the best term insurance plans in India in 2026, refer to the linked article. To know how we select plans and insurers, refer to the linked Ditto’s Cut article.

Why Choose a 10-Year Term Insurance Policy?

A 10-year term may make sense if:

• You’re close to clearing a major liability (like a home loan nearing completion)
• Your dependents will become financially independent within a decade
• You already have long-term life cover and need top-up protection temporarily
• You expect a major financial shift (business exit, early retirement, inheritance)
• You’re purchasing term insurance very late (age 50+) and only need coverage till retirement (around 60–65). In such cases, a 10-year term functions as a “till-retirement” cover, though premiums are higher and medical underwriting plays a critical role.

Real-Life Scenario: Why a 10-year Term Isn’t Enough

Example: 30-year-old new parent with a home loan

Profile

• Age: 30
• Retirement age target: 60
• Home loan remaining: 25 years
• Youngest child’s age: 0 (assume financial independence at 23)
• Safety buffer: 5 years

Step-by-step Logic

• Years till retirement = 60 − 30 = 30 years
• Loan tenure left = 25 years
• Years till child becomes independent = 23 − 0 = 23 years

Take the maximum financial dependency window (30, 25, 23) = 30 years

Add a buffer for uncertainty: 30 + 5 = 35 years

Ideal policy term: 35 years (age 30 → 65)

Key Insight: Even in a fairly “standard” life setup, a 10-year term would expire at age 40, while the home loan, child-related expenses, and income dependency are very much alive. This is why short-term plans work only when all major responsibilities end soon. 

Factors to Consider While Purchasing a 10-Year Term Insurance Plan

01

Cover Amount

Even though the policy term is short, your sum assured should still be adequate, typically around 15–20 times your annual income. You can use our term insurance cover calculator to assess your ideal cover amount.

02

Financial Situation

Think beyond the policy expiry and assess the post-term risk. This involves analyzing what your family’s financial situation would look like after 10 years if income dependency continues.

03

Premiums

While a shorter policy term may seem cost-effective today, short-term premium savings can create long-term protection gaps, especially if you need to buy fresh insurance later at a higher age and cost.

04

Claim Metrics

When evaluating insurers, don’t rely solely on the claim settlement ratio. Instead, look at complaint volumes, solvency ratios, and real claims experience, as these provide a more accurate picture of how smoothly claims are handled.

05

Riders

Finally, add riders only if they meaningfully reduce financial risk in your specific situation. Unnecessary riders can increase premiums without adding real value.

Why Choose Ditto for Term Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Aaron below love us:

• No-Spam & No Salesmen
• Rated 4.9/5 on Google Reviews by 15,000+ happy customers
• Backed by Zerodha
• 100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a call now!

Conclusion

A 10-year term life insurance plan can solve short-term risks effectively. It is commonly used as temporary additional coverage alongside an existing long-term insurance policy. However, for most people, income dependency and financial responsibilities extend far beyond a decade.

Before opting for a shorter tenure, it’s worth weighing the small premium savings today against the risk of being underinsured later. Remember, continuity matters more than cost-cutting in life insurance.