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 stated death benefit during a set timeframe—commonly 10, 15, 20, 25, or 30 years—with consistent monthly payments. After the term ends, coverage terminates or can be renewed at significantly higher rates. This remains the most economical method to buy substantial protection during the prime working and child-rearing years.
Permanent life (whole life, universal life, and related products) continues for your entire lifetime and accumulates a cash component. The monthly outlay is substantially higher for equivalent death benefits, and cash accumulation is slow in the early years. This approach works well for situations requiring lifelong coverage: long-term dependent care needs, estate tax planning, or business succession arrangements.
How to choose
Base your decision on need, not product features. When a need is temporary—a mortgage to pay off, kids to raise to adulthood—term insurance aligns perfectly. When obligations are permanent, a permanent policy or convertible term might be preferable. Several carriers permit converting a term policy to permanent coverage without requiring new medical approval during a set window; the quote details show each carrier's conversion terms.
What people in Monterey often do
A practical strategy involves selecting a 20- or 30-year term policy matched to your actual liabilities, with periodic reviews as life changes. This maintains reasonable premiums while getting adequate coverage when you need it most. Susman Insurance Agency is available to explore permanent products if your situation calls for protection that never expires.