Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term coverage gives a fixed payment to beneficiaries if you die within a window—typically 10, 15, 20, 25 or 30 years—in trade for a locked-in premium. Once the term expires, coverage terminates or renews at significantly higher rates. It's the most economical way to secure major protection when a family needs it most.
Permanent coverage (whole life, universal life and similar products) stays active throughout your lifetime and accumulates a cash element. The cost for the same death benefit is much steeper, and cash growth is gradual early on. It fits people with permanent obligations: ongoing care for a dependent, estate money, or business succession.
How to choose
Work backward from the need, not forward from insurance products. A goal with an end—a loan you'll repay, children aging into independence—is a perfect fit for term. Without an expiration, a permanent product or a term-to-permanent conversion option might work. Many carriers permit conversion without fresh exams during a set window; compare the terms on each quote.
What people in San Jose often do
A practical tactic: a 20- or 30-year term policy keyed to actual family obligations, reassessed if circumstances shift. You pay what makes sense for an enough amount now—that's what counts. Susman Insurance Agency has permanent alternatives if lifelong needs shape your situation.