Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life pays out a set death benefit if death occurs during a specified length, usually 10, 15, 20, 25 or 30 years, in return for a fixed monthly cost. After the term runs out, coverage ends or becomes far pricier. For the years when a family faces the most financial risk, it is the cheapest way to secure a large amount.
Permanent life (whole life, universal life and their variants) is intended to last your whole life and accumulates a cash value. Costs are much higher for the same benefit, and cash buildup is slow at first. It is a fit for people with never-ending needs: someone always needing support, passing assets to beneficiaries, or arranging succession in a business.
How to choose
Begin with the need, not with the insurance type. When the need has an expiration date—a loan that gets paid off, kids who become grown-ups—term insurance is a perfect match. When the need never goes away, a permanent product or a term policy with a conversion rider may make sense. Many carriers allow you to convert term to permanent at no new medical exam within a set conversion period; the quote tool details each carrier's conversion options.
What people in Pasadena often do
A popular choice is a 20- or 30-year term built around your household's actual needs, reassessed as situations change. It gets you the protection you actually need right now at a price you can afford, which counts the most. If there are lifelong obligations in your case, Susman Insurance Agency can walk through permanent options.