Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life offers a fixed death benefit if death occurs during the covered period—usually 10, 15, 20, 25, or 30 years—for a locked-in premium. At the end of the term, the benefit ends or renews at a much higher rate. It is the most economical approach to get substantial coverage during your peak earning years.
Permanent life (whole, universal, and related variants) is structured to cover your entire lifespan and accumulates cash reserves within the policy. For the same death benefit, costs are significantly higher, and the cash component grows slowly early on. This approach works well when you face a need that won't end: a dependent requiring lifelong care, estate tax planning, or succession of a business.
How to choose
Begin with your need rather than the product. If your need has an endpoint (a mortgage you'll pay off, kids who'll grow up, a loan with a maturity date), term coverage aligns perfectly. If a need is permanent (a family member requiring lifelong support, wealth transfer, business continuity), permanent coverage or a convertible term policy may suit you. Many carriers permit switching term coverage to permanent without repeating the medical process, within a set timeframe; each carrier shows its rules in the quote details.
What people in South San Francisco often do
A sound approach: buy a 20- or 30-year term policy matched to actual household obligations, and review your coverage when major circumstances shift. This approach keeps premiums affordable and lets you secure adequate coverage right away, which is what really counts. If permanent solutions become part of your plan, Susman Insurance Agency can explain what works for your situation.