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 death payment if you pass during the term—10, 15, 20, 25, or 30 years—with unchanging monthly cost. Once the term finishes, insurance expires or becomes prohibitively pricey. It's the most economical way to get high-level protection when your family depends on you most.
Permanent coverage (whole life, universal life and comparable products) continues throughout your lifetime while accumulating cash reserves. Monthly fees are significantly higher per dollar of benefit, with slower early cash growth. Best for indefinite needs: a dependent needing lifetime help, wealth transfer between generations, or business succession.
How to choose
Start with what you're protecting, not which product. A temporary obligation—a home purchase loan, young kids, a small business debt—works well with term. A permanent obligation points to permanent insurance or convertible term. Many insurers enable conversion to permanent anytime without medical testing, and the tool lists what each one offers.
What people in Watsonville often do
Most families choose 20 or 30 years and size it to real needs, reviewing it as situations evolve. This keeps costs reasonable and purchases the right amount when it counts. Susman Insurance Agency is prepared to explain permanent insurance if an endless requirement is relevant to you.