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 set death benefit during a fixed time period—typically 10, 15, 20, 25 or 30 years—at a fixed monthly cost. When the term expires, the policy ends or can be renewed at much higher rates. Term insurance is the most economical way to obtain substantial death protection during the years your family depends most heavily on your income.
Permanent life policies (whole life, universal life, and similar products) remain in force throughout your life and accumulate cash value. They cost significantly more than term for an equal death benefit, and cash value buildup is slow in the early years. Permanent coverage fits people with lifelong needs: a family member requiring permanent support, estate planning, or business succession arrangements.
How to choose
Begin with your need, not the product. When the need has a deadline—a paid-off mortgage, independent children—term coverage aligns perfectly. When the need lasts your lifetime, a permanent policy or a term policy with a conversion right may suit you. Most carriers permit you to convert term to permanent during a window without repeating underwriting. The quotes display each carrier's conversion options.
What people in Hayward often do
A practical strategy is a 20- or 30-year term policy matching your household's actual obligations, reviewed and adjusted as life changes. This approach keeps premiums low enough to buy sufficient coverage today, which is most important. Susman Insurance Agency can explore permanent options if you have obligations lasting your entire lifetime.