Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance provides a fixed death benefit during a set timeframe—typically 10, 15, 20, 25, or 30 years—with consistent monthly payments. Once the term concludes, coverage ends or can be renewed at significantly higher annual rates. For the same death benefit, term is the most economical way to secure the protection your family needs during their peak years of dependence.
Permanent insurance (whole life, universal life, and variations) is designed to remain active throughout your lifetime and accumulates a cash component. Monthly payments are substantially higher than term for equivalent coverage, and early cash value growth is modest. Permanent coverage makes sense for ongoing financial obligations: a family member requiring lifelong support, estate tax liquidity, or business succession strategy.
How to choose
Begin with the need rather than the product category. When that need has a deadline—a mortgage being paid off, children becoming independent, a company loan expiring—term life tracks it precisely. When you anticipate ongoing needs, permanent insurance or a convertible term policy may align better. Many carriers include conversion features that allow switching from term to permanent coverage at any time during a conversion window without re-undergoing medical evaluation; each quote shows that carrier's conversion rules.
What people in Redlands often do
A sensible approach: acquire a 20- or 30-year term policy with a benefit amount tied to realistic family obligations, then revisit the decision when major life circumstances shift. This strategy keeps premiums affordable so you can purchase sufficient coverage now—the critical piece. If a lifelong need applies to your situation, Susman Insurance Agency can explore permanent options as part of your overall picture.