Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life guarantees a set payout if death occurs during a defined interval—typically 10, 15, 20, 25 or 30 years—with consistent yearly premiums. After the set period lapses, the policy stops or extends at substantially higher costs. It represents the most economical way to secure a substantial benefit during the period when your loved ones depend on you most.
Permanent life (whole life, universal life, and variants) is structured to run throughout your life and accumulates cash value. For identical death benefits, costs are much higher each month, and the savings inside grow gradually in the initial years. This approach suits those with indefinite requirements: ongoing support for a dependent, funds for estate settlement, or preparing a business transition plan.
How to choose
Start with your need, then find the product. When your need has a completion date—a loan you'll pay off, kids approaching independence—term insurance aligns perfectly. If your need continues indefinitely, permanent coverage or a convertible term policy might fit. Many insurers permit you to convert term to permanent at no additional medical review within a set conversion window; details appear in each carrier's quote information.
What people in Novato often do
A sensible strategy involves selecting a 20- or 30-year term matched to your household's genuine needs, with regular check-ins as situations evolve. This strategy keeps costs reasonable while letting you buy coverage large enough for today—the thing that matters. Susman Insurance Agency can explore permanent insurance possibilities if lifelong coverage fits your circumstances.