Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term coverage guarantees a stated payout if death happens during the chosen timeframe—usually spans of 10, 15, 20, 25 or 30 years—at a consistent premium amount. The policy terminates when the term expires unless renewed, and renewal rates increase significantly. This approach offers the most economical way to obtain substantial protection during a family's most vulnerable years.
Permanent coverage (whole life, variable universal life, indexed universal life and comparable products) is structured to remain active your entire lifetime and accumulates cash value within the policy. Costs for identical coverage are markedly higher than term, and accumulated value grows slowly during the early years. Permanent policies serve those with ongoing needs: a family member who will require lifelong support, wealth transfer to heirs, or continuity planning for a business.
How to choose
Begin by identifying your specific needs, not the insurance product. When your need has a completion point—a mortgage being repaid, kids becoming adults—term insurance maps directly to that timeline. For needs without an endpoint, permanent coverage or term with conversion rights might be appropriate. A significant number of carriers permit converting term policies into permanent coverage without updated medical exams within a conversion window; our tool displays each carrier's conversion terms.
What people in San Diego often do
A typical strategy involves obtaining a 20- or 30-year term policy aligned with the household's specific financial obligations, then reassessing coverage as life circumstances shift. This keeps monthly costs low so you can afford sufficient protection when it matters most. When a permanent insurance element fits your long-term picture, Susman Insurance Agency can explore those choices with you.