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 set amount if you pass away within the chosen timeframe—typically 10, 15, 20, 25, or 30 years—at a stable monthly premium. The coverage concludes at the end of the term, or continues at a significantly higher cost. It is the most affordable way to secure substantial protection during the years your family depends on your paycheck.
Permanent life insurance (whole life, universal life, and other types) stays in effect throughout your lifetime and accumulates a cash value within the policy. Premiums cost much more than term for the same death benefit, and the cash buildup is slow at first. It fits situations where the need for coverage never ends: caring for a dependent with special needs, providing money for estate taxes, or arranging business succession.
How to choose
Think about the need first, then the product. If your need has a finish line—kids graduating, a mortgage paid off, an obligation with an end date—term coverage lines up perfectly. If the need goes on forever, permanent insurance or a conversion rider on a term policy might make sense. Many carriers permit converting term to permanent coverage without redoing your health exam, as long as you act within a certain window; each quote here lists the conversion details.
What people in National City often do
A sensible strategy is a 20- or 30-year term sized to what your household actually needs, with a review when life shifts—a new child, a mortgage payoff, or a job change. This approach holds premiums down so you can afford enough coverage today, which is the priority. If your situation requires coverage that lasts your whole life, Susman Insurance Agency is ready to talk through permanent products.