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 set death benefit over a fixed timeframe—typically 10, 15, 20, 25 or 30 years—with a level rate. When the term ends, coverage stops or renews at a higher yearly rate. It's the most affordable way to buy substantial protection for the years your family needs it most.
Permanent insurance (whole life, universal life, variants) stays in force for your whole life and builds cash value inside the policy. Monthly costs are much higher for the same benefit, and cash value grows slowly at first. It's for people with permanent needs: a disabled family member, estate planning, or succession planning for a business.
How to choose
Start with the need, not the product. If the need ends—mortgage paid off, children independent—term insurance closes that gap clearly. If the need is ongoing, permanent insurance or a convertible term might be right. Many carriers let you convert a term policy to permanent coverage without new medical underwriting during a set window; quotes here show each carrier's terms.
What people in Santa Cruz often do
A common choice is a 20- or 30-year term sized to your family's real obligations, revisited when major life changes happen. This approach keeps the monthly premium manageable so you can get adequate coverage now—what actually matters most. Susman Insurance Agency can discuss permanent products if lifelong coverage fits your goals.