Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life insurance provides a set death benefit if you pass away within a chosen period—typically 10, 15, 20, 25, or 30 years—at a locked-in monthly rate. At the end of the term, coverage ceases or can be renewed at a sharply increased cost. It is the most affordable method to secure a substantial benefit during the years when a family relies most heavily on that income.
Permanent life insurance (whole life, universal life, and related types) remains active for your entire lifetime and accumulates a cash value component. The premiums are much steeper than term for equivalent coverage, and the cash value builds slowly at first. It works well for people with ongoing needs: a family member who will always require support, the need for liquid assets in an estate, or a business transition plan.
How to choose
Begin with the need, not the product type. When the need will eventually disappear—a mortgage being paid off, children becoming self-supporting—term coverage aligns perfectly. When the need is permanent, permanent coverage or a convertible term policy may be better. Many carriers allow a conversion from term to permanent without redoing underwriting, and there is usually a deadline for this option; the quotes shown here include each carrier's conversion rules.
What people in Orange often do
Many people choose a 20- or 30-year term policy matched to their actual household obligations, with a periodic review as circumstances shift. This strategy keeps the monthly cost low enough to purchase a sufficient benefit today—the priority. If you do have needs that will never end, Susman Insurance Agency is available to explore permanent coverage as well.