Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life guarantees a set payment if you die within a defined span—usually 10, 15, 20, 25, or 30 years—for a locked-in monthly premium. When that term is up, the coverage ends or the rate jumps. It's the cheapest way to buy large protection when your family needs it most.
Permanent life (including whole life, universal life and related forms) is structured to remain active throughout your lifetime and accumulates a cash value component inside the contract. The monthly cost rises substantially compared to term for the same face amount, and the cash value compounds gradually during the early policy years. This form of coverage suits circumstances with truly indefinite financial obligations: a family member requiring ongoing support, money needed to settle the estate, or arrangements for business continuity.
How to choose
Begin with what you need, not with insurance types. Needs with a finish line—a 25-year mortgage, kids leaving home in 15 years—pair naturally with term coverage. Needs without an endpoint might point to permanent policies or a term policy with conversion options built in. Most carriers permit you to convert term to permanent without new medical checks during a window; check each quote for conversion particulars.
What people in Gilroy often do
A solid approach: get a 20- or 30-year term sized to your real obligations, then revisit when your circumstances shift. This strategy keeps premiums in reach so you can buy the protection that really matters right now. If a permanent solution fits your picture down the road, Susman Insurance Agency is available to discuss it.