Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life provides a death benefit if death occurs within a set term, typically 10, 15, 20, 25 or 30 years, in trade for a stable monthly premium. Coverage lapses when the term ends, though you can usually renew at substantially higher rates. It is the most affordable way to provide substantial death benefit during the years when a family's financial exposure is highest.
Permanent life (whole life, universal life, and similar products) remains active your whole life and accumulates cash value inside the policy. Monthly costs are considerably higher than term for the same death benefit, and cash growth is slow early on. This structure works well for lifelong needs: an adult dependent requiring permanent support, estate planning, or business succession planning.
How to choose
Begin with the obligation, not the product. When an obligation has a finite duration—a home mortgage with a payoff date, children becoming adults, a loan with a maturity—term insurance aligns perfectly with that timeline. When an obligation never ends—permanent support for a dependent, multi-generation wealth transfer, business continuity—permanent coverage or a convertible term may be the right choice. Conversions, which allow you to exchange term for permanent coverage without new underwriting, are offered by most carriers and are shown in each quote.
What people in Salinas often do
A frequently used strategy combines a 20- or 30-year term policy sized to meet the household's genuine financial obligations, and periodic reviews as circumstances shift. This approach maintains premiums at a level that allows adequate coverage today. Susman Insurance Agency stands ready to explore permanent coverage options if your planning calls for protection that lasts your whole life.