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 death benefit only during a fixed window—commonly 10, 15, 20, 25 or 30 years—in return for a consistent monthly premium. When the period ends, coverage either ends or renews at a significantly higher cost. It's the lowest-price option for substantial coverage during years when your household truly needs it.
Permanent life (whole life, universal life, and similar types) provides lifetime coverage and includes an internal cash component. Monthly payments are substantially higher for the same benefit amount, and early cash growth is modest. It's suitable for scenarios with lasting needs: a dependent requiring permanent care, estate tax planning, or business succession considerations.
How to choose
Begin by assessing the actual need, not the product type. When the need has an end date—a mortgage to pay down, children who'll become self-sufficient—term insurance aligns perfectly. For needs without an end date, permanent insurance or a conversion-eligible term policy might be appropriate. Many carriers allow converting term to permanent at any point during a defined window without requiring new health evaluation; the quote tool displays conversion terms for each carrier.
What people in Davis often do
A popular approach starts with a 20- or 30-year term policy scaled to the family's real obligations, then reassessed as circumstances shift. This approach keeps premiums manageable so you can afford sufficient coverage when you need it most, which is what counts. Susman Insurance Agency is available to explore permanent solutions if your circumstances involve long-term requirements.