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 during a defined time span—typically 10, 15, 20, 25, or 30 years—with a fixed premium that doesn't change. When that period expires, coverage lapses or can continue at substantially higher cost. This remains the most cost-effective way to secure substantial protection during your family's highest-need years.
Permanent insurance (whole life, universal life, and similar products) is intended to remain in effect throughout your life and builds up cash value inside the policy. Monthly or annual costs are substantially higher for the same death benefit, and the cash accumulation is slow at first. This approach works well if you have permanent financial obligations: a family member who will always require support, the need for estate liquidity, or plans for business succession.
How to choose
Begin with what you actually need, not with product categories. If your financial need has a defined endpoint—a loan being paid down, kids becoming independent—then term insurance aligns perfectly with that need. When your financial obligation is ongoing, a permanent policy or a convertible term policy might be appropriate. Many carriers offer the ability to convert term to permanent at any time without going through medical underwriting again. Check each carrier's conversion options in the quote details.
What people in Los Gatos often do
A typical strategy is to buy a 20- or 30-year term policy in an amount that matches the household's actual financial needs, then reassess if major circumstances shift. This approach keeps premiums affordable enough to buy sufficient coverage right now, which matters most. Contact Susman Insurance Agency if you want to explore permanent options as part of your comprehensive plan.