Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life insurance pays a set death benefit only if death occurs within the chosen period—typically 10, 15, 20, 25 or 30 years—during which the monthly premium stays fixed. At the end of the term, the policy ends or renews at substantially higher rates. Term is the most affordable way to obtain substantial protection during your family's peak years of need.
Permanent life insurance (whole life, universal life, and related types) is built to last your entire life and accumulates a cash value portion. Monthly premiums are substantially higher than term for the same benefit amount, and cash value builds slowly at first. Permanent policies fit situations with ongoing needs: a dependent requiring lifelong care, estate tax planning, or business continuity.
How to choose
Begin with the need you're protecting, not the product type. If the need has a finish line—a paid-off mortgage, grown children—term coverage addresses it directly. If the need is endless, permanent insurance or a convertible term policy makes sense. Numerous carriers offer the ability to switch term to permanent without fresh underwriting within a specified window; our quotes display each carrier's conversion options.
What people in San Jose often do
A practical strategy is a 20- or 30-year term matching your true financial obligations, revisited if your situation shifts. This approach keeps the monthly payment manageable so you can afford sufficient protection today, which is the priority. Susman Insurance Agency is ready to explore permanent solutions if you have indefinite coverage needs.