Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance provides a fixed death benefit payable during a specific window—commonly 10, 15, 20, 25, or 30 years—with a level, fixed premium throughout the term. At the end of the term, the coverage ends or can be extended at a considerably higher cost. It is the most economical option for obtaining a substantial benefit during the years when a family's dependence on a primary earner is strongest.
Permanent insurance (whole life, universal life, and similar products) is structured to pay a benefit whenever you die and accumulates cash value within the contract. For equivalent death benefits, permanent plans charge substantially more in premiums, and the stored cash value builds gradually in the early years. They work well for circumstances where coverage is always needed: a dependent requiring perpetual support, estate settlement needs, or succession plans for a business.
How to choose
Start with the need, not with the product type. When a need has an expiration point—a loan to be repaid, kids who will grow up—term coverage lines up with it perfectly. When a need continues indefinitely, permanent coverage or a term policy with conversion rights might be the right fit. Most carriers permit switching from term to permanent without reunderwriting during a defined window, and the comparison tool here shows each carrier's conversion choices.
What people in Patterson often do
A common strategy is to buy a 20- or 30-year term policy that matches the household's genuine obligations, then revisit the decision as situations shift. This approach keeps the cost manageable so that you can buy enough coverage now—which is the most important step. If a need for lifetime coverage becomes clear down the line, Susman Insurance Agency can review permanent policies with you at that time.