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 fixed death benefit if you pass away during a specified period—typically 10, 15, 20, 25 or 30 years—in return for level premiums. Once the term concludes, protection ends or can be renewed at significantly higher rates. This remains the most cost-effective approach to securing substantial protection during a family's most vulnerable years.
Permanent life (whole life, universal life and variants) is structured to provide lifetime coverage and accumulates cash value inside the policy. Premiums are much higher relative to the death benefit, and cash value grows modestly during the early years. This approach suits people whose needs persist throughout life: a dependent who requires ongoing support, estate taxes that will need payment, or business succession considerations.
How to choose
Begin with the need rather than the product. For needs with a defined endpoint—a mortgage being paid off, children becoming independent—term coverage is an ideal match. For ongoing needs that never end, permanent coverage or a convertible term policy may be appropriate. Many carriers permit converting term to permanent without additional medical screening within a specified conversion window; the quote tool displays each carrier's conversion provisions.
What people in Riverside often do
A typical strategy involves a 20- or 30-year term policy tailored to your household's actual obligations, with reviews whenever your circumstances shift. This approach keeps premiums manageable while ensuring you purchase sufficient protection today—which is the priority. If your situation includes a lifelong obligation, Susman Insurance Agency can review permanent options with you.