Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life delivers a set death benefit during a specific window—typically 10, 15, 20, 25, or 30 years—at a consistent monthly rate. Once that period concludes, your coverage expires or renews at substantially higher rates. For the crucial years when families need substantial protection, it's the most economical option.
Permanent life (whole life, universal life variations) remains active throughout your life and accumulates cash reserves within the contract. Monthly costs are substantially higher than term for identical benefits, and cash reserves build gradually in the early decades. This is right for lifelong obligations: a dependent requiring permanent support, the need for cash in an estate, or a business transition plan.
How to choose
Begin with your actual need, not with a predetermined product. When that need has a finish line—a loan maturing, children becoming adults—term insurance aligns perfectly. For perpetual needs, permanent coverage or convertible term might suit you better. Numerous carriers permit converting from term to permanent during a specific period without fresh medical evaluation; the quotes here detail each carrier's conversion rules.
What people in East Palo Alto often do
Many households find success with a 20 or 30-year term policy matched to actual family obligations, then revisit when life changes. This approach keeps costs affordable so you can secure sufficient protection today—the priority. Should you identify a lifelong need, Susman Insurance Agency is ready to explore permanent options.