Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life insurance pays a fixed benefit if you die within a set time—10, 15, 20, 25, or 30 years—at a locked-in monthly cost. Once the term ends, coverage stops, or you can renew it at a much higher rate. It is the cheapest way to get substantial protection during the years when your family depends on your income the most.
Permanent life insurance (whole life, universal life, and variations) is meant to cover you for life and it builds a cash value you can borrow against or withdraw. The premiums for the same benefit are much higher than term, and cash value grows slowly at first. It works for people who need lifelong coverage: a dependent who will never be independent, money to settle an estate, or a succession plan for a business.
How to choose
Think about the need first, the product second. If your need has an end date—a mortgage that will be paid off, kids who will grow up and leave—term is a perfect fit. If the need does not end, a permanent policy or a convertible term policy makes sense. Many carriers allow you to convert term to permanent without re-doing the medical exam, within a time window. The quote tool shows what each carrier offers.
What people in Santa Clara often do
Many households choose a 20- or 30-year term policy covering their actual obligations, and review it if major changes happen. This strategy keeps monthly costs low so you can afford enough coverage when you need it. If a lifetime need is part of your situation, Susman Insurance Agency can explore permanent options with you.