Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term coverage delivers a fixed benefit if death occurs within the specified window—10, 15, 20, 25 or 30 year options—with payments that don't change. Once the term lapses, your coverage expires or continues at significantly higher fees. This is the most economical approach to getting a large benefit during the years when your household truly needs maximum protection.
Permanent protection (whole life, adjustable universal life and similar forms) lasts for your entire lifetime and builds stored cash inside. They cost substantially more each month than comparable term amounts, and early cash development is slow. This approach suits customers with permanent obligations: someone always dependent on them, estate management concerns, or passing a business to the next generation.
How to choose
Start by figuring out what you're protecting, not by selecting an insurance product first. When your need has a finish line—a mortgage you'll pay off, children reaching adulthood, a business loan maturing—term insurance matches that duration perfectly. Conversely, if the need is truly permanent, permanent insurance or a convertible term policy might align better. Numerous carriers allow term policyholders to convert to permanent without redoing medical screening during the conversion period; the quotes we show include each carrier's specific rules.
What people in San Ramon often do
A practical strategy: select a 20- or 30-year policy matched to real obligations you and your family face, revisiting it when major life changes occur. This approach keeps premiums affordable enough to buy sufficient coverage today, which is the most critical factor. Should permanent coverage become relevant later, Susman Insurance Agency can explore those alternatives with you.