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 set payment if you pass away within a specified timeframe, typically 10, 15, 20, 25 or 30 years, for a locked-in premium. After the term expires, coverage ends or converts to a new rate that is significantly higher. It offers the most affordable way to secure a high benefit during peak family years.
Permanent life (whole and universal life) provides protection for your entire life and builds cash reserves inside the contract. Premiums are substantially higher for equivalent death benefits, and cash value accumulates more slowly early on. This approach works well for individuals with ongoing needs: care for a dependent indefinitely, estate planning, or succession of a business.
How to choose
Begin with the need itself, not the product. Does your need have a finish date? A mortgage being paid off, children becoming adults—term insurance aligns with that schedule. Does your need continue indefinitely? A permanent policy or a convertible term may fit better. Most carriers allow you to convert term to permanent during a window without additional medical evaluation; the comparison tool shows conversion options for each carrier.
What people in Novato often do
Many families choose a 20- or 30-year term sized to cover real household needs, and reconsider when life circumstances shift. This maintains manageable premiums so you can afford sufficient protection today, which is what counts. Susman Insurance Agency can discuss permanent coverage if you have needs that extend beyond a set timeframe.