Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life provides a fixed death benefit if you die during your chosen interval—typically 10, 15, 20, 25 or 30 years—at a constant monthly rate. At the end of the term, coverage terminates or can be renewed at a new, higher rate. It offers the lowest-cost way to get substantial coverage during the years families need it.
Permanent life (whole life, universal life and similar products) remains active throughout your life and accumulates cash value. The price is significantly steeper for an equivalent death benefit, and early cash growth is gradual. It fits situations with never-ending needs: a person who always needs your support, settling an estate, or transferring a business.
How to choose
Begin with the need, not the solution. When the need has a finish—a mortgage paid down, children grown independent—term coverage aligns perfectly. When the need persists, permanent insurance or a convertible term policy may be right. Several carriers allow converting term to permanent without fresh underwriting during a specified period; our quote tool lists each carrier's conversion window.
What people in Berkeley often do
A standard strategy is a 20- or 30-year term sized to real household obligations and reassessed as life shifts. This approach holds premiums manageable so you can buy sufficient coverage today, which is the priority. Susman Insurance Agency can explore permanent products if long-term needs apply to your situation.