Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term coverage provides a set death benefit during a fixed window—typically 10, 15, 20, 25 or 30 years—in return for a fixed-rate premium. After the term ends, the coverage terminates or converts to a much higher-cost annual renewal rate. It's the most affordable method to secure substantial protection during the years when your dependents need it most.
Permanent coverage (whole life, universal life, and comparable products) stays in effect throughout your lifetime and accumulates a cash value component. The monthly payment is considerably more expensive for the same benefit, and cash buildup is slow in the early years. This structure is right for people who have lifelong obligations: a dependent with permanent needs, managing estate matters, or arranging succession for a business.
How to choose
Start with the obligation, not with the product type. When an obligation has a finish line—a mortgage you'll pay off, kids you'll raise to independence—term insurance aligns perfectly with that need. When an obligation has no end date, permanent coverage or a term policy with conversion rights may be the answer. Most carriers permit converting term to permanent at no extra underwriting during a defined window; the quotes here show each carrier's conversion terms.
What people in Berkeley often do
A practical strategy is to buy a 20- or 30-year term policy matched to your family's actual financial responsibilities, and revisit it when circumstances shift. This method keeps the monthly premium realistic enough to get the coverage you need right now, and that's what matters. Should lifelong protection fit your situation, Susman Insurance Agency can walk you through permanent products.