Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life provides a specified death benefit if death occurs within a predetermined period—usually 10, 15, 20, 25, or 30 years—at a level monthly cost. When the term expires, protection ends or renews at significantly increased cost. It is the most economical way to obtain substantial protection during the years when your family depends most on your income.
Permanent life (whole life, universal life, and variants) is structured to cover a whole lifetime and accumulates cash value within the contract. The monthly premiums are notably higher for the same death benefit, and cash value accumulates slowly early on. This option serves those with enduring financial needs: a dependent who requires lifelong support, needed liquidity for an estate, or a succession plan for a business.
How to choose
Begin with the need: does it have an endpoint? A mortgage being paid off over years, children becoming independent, or a business loan with a defined maturity all point toward term protection. If you have a need that never ends—a dependent with lifelong requirements, significant estate settlement costs, or an enduring business purpose—permanent or convertible term policies deserve consideration. Most carriers provide conversion options that let you exchange term for permanent coverage during a set window without undergoing new medical review.
What people in Tustin often do
A practical strategy: a 20- or 30-year term sized to your household's known obligations, reassessed whenever major life events occur. This approach keeps premiums manageable while assuring you buy adequate protection at the outset, which is the priority. Susman Insurance Agency can also review permanent products should a lifelong obligation be relevant to your situation.