Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance delivers a designated death benefit throughout a set timeframe—typically 10, 15, 20, 25, or 30 years—in return for a fixed-rate premium. Once the term concludes, you may renew at substantially higher premiums or the policy may expire. For the most affordable way to obtain a large death benefit during your family's most vulnerable years, this is the right choice.
Lifelong coverage (inclusive of whole life, universal life, and related products) remains active throughout your lifetime and generates cash value within the contract. Monthly premiums will be noticeably higher than term insurance for an equivalent death benefit, and early cash buildup is gradual. This option suits those with enduring responsibilities: a loved one requiring perpetual assistance, wealth transfer objectives, or business continuity needs.
How to choose
Begin with identifying the need rather than shopping for products. A time-limited financial obligation—such as a loan being paid down or children becoming independent—pairs well with term insurance. Conversely, if your need spans your whole life, a permanent policy or convertible term policy might be the fit. Conversion options available through most carriers let you change from term to permanent without re-underwriting during a specified window; our comparison tool will show you each carrier's conversion options.
What people in Encinitas often do
Many families opt for a 20- or 30-year term sized to match actual financial obligations, then revisit the decision as circumstances shift. This strategy keeps costs low enough to purchase an appropriate level of protection now, which is the most critical factor. If permanent coverage becomes part of your long-term picture, our team at Susman Insurance Agency can explore those possibilities.