Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life provides a predetermined benefit amount within a fixed interval, typically spanning 10, 15, 20, 25, or 30 years, with a consistent premium payment. Afterward, coverage ends or extends at substantially higher costs. For the years when coverage matters most, it offers the least expensive way to obtain substantial protection.
Permanent life policies (whole life, universal life, and similar products) function across your complete lifespan and accumulate monetary value internally. These contracts cost substantially more for equivalent death protection, with cash buildup slower at inception. They become relevant for persistent necessities: an individual permanently requiring care, needing funds for estate settlement, or having business succession concerns.
How to choose
Begin with what you need, not which product sounds best. When your obligation has an endpoint—like when a mortgage ends or kids finish school—term coverage provides a direct fit. When your need lasts forever, permanent insurance or a term policy with switching provisions makes sense. Numerous carriers permit switching term to permanent coverage at no additional underwriting, with specific rules available from our quote tool.
What people in Hanford often do
The standard practice: obtain a 20 or 30-year term matching your family's actual financial needs, and reassess when major life changes occur. This method lets you secure substantial protection at prices that work within today's budget. If your situation may require protection beyond a set timeframe, Susman Insurance Agency can explore permanent alternatives.