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 set death benefit for a stated period—10, 15, 20, 25, or 30 years—at a fixed monthly rate. When the term finishes, the policy ends or continues at a higher rate. Term is the cheapest way to get substantial coverage during the years a family needs it most.
Permanent life (whole life, universal life, and similar products) runs for your whole life and holds a cash value that builds over time. The monthly cost is much higher than term for the same benefit, and early cash growth is gradual. Permanent coverage fits those with needs that never end: a lifetime dependent, wanting liquidity for the estate, or succession planning for a business.
How to choose
Start with the obligation, not the insurance type. If that obligation finishes—a mortgage payoff, kids becoming independent—term tracks it exactly. For obligations with no finish line, a permanent policy or a convertible term policy may fit. Numerous carriers let you convert term to permanent anytime during a set window without new health exams; the quote tool shows conversion windows for each carrier.
What people in San Francisco often do
Many people choose a 20- or 30-year term sized to real household obligations and revisit the decision as circumstances evolve. This approach keeps costs low enough to afford an appropriate benefit right now, which is the priority. If a permanent need exists, Susman Insurance Agency can explore those options with you.