Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life guarantees a payment if death occurs within a fixed window—typically 10, 15, 20, 25, or 30 years—at a steady monthly rate. After the term expires, coverage ends or renews at substantially higher rates. For the amount needed when protection matters most, term insurance is the most economical option.
Permanent life (which includes whole life, universal life, and similar products) stays active for life and accumulates money value. Costs per dollar of benefit run substantially higher, and cash buildup is slow initially. Permanent coverage suits those with indefinite obligations: a lifelong dependent, taxes and estate planning, or business continuity needs.
How to choose
Work backward from the need, not the product type. When a need has a finish line—a loan payoff, kids reaching independence, a mortgage completion—term protection aligns perfectly. When needs are permanent, permanent insurance or term with conversion rights may be appropriate. Most carriers enable converting term to permanent without re-underwriting if done during the conversion period; check each carrier's terms in the quote comparison.
What people in San Rafael often do
A practical strategy: purchase a 20 or 30-year term policy matched to real family needs, and revisit it when major life changes occur. This approach keeps premiums affordable while securing sufficient coverage now. Susman Insurance Agency is available to discuss permanent solutions if your situation includes lifelong coverage needs.