Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance provides a death benefit if you pass away within a set period—typically 10, 15, 20, 25 or 30 years—for a level monthly payment. When the term expires, coverage stops or renews at a much higher rate. It's the most affordable way to buy substantial protection during the years your family depends on your income.
Permanent insurance (whole life, universal life and variations) is structured to protect your family for your entire lifetime and builds a cash value. The monthly cost is much higher for the same death benefit, and cash value grows slowly in early years. It's right for people with lifelong needs: a dependent who will never be independent, needing money for a business succession, or building an estate.
How to choose
Start with the need, not the product type. If your need has an end date—a 20-year mortgage, kids who'll be independent in 15 years—term coverage fits naturally. If the need never ends, permanent insurance or a term policy with a conversion option may make sense. Many carriers allow converting term to permanent without additional medical exams during a conversion window, and quotes show each carrier's terms.
What people in Walnut Creek often do
Many people choose a 20- or 30-year term matching their major obligations, and review it if circumstances change. This approach keeps premiums affordable enough to buy the coverage amount you actually need. Susman Insurance Agency can discuss permanent options if your situation includes ongoing needs.