Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life insurance provides a set death benefit if death occurs within a defined span—typically 10, 15, 20, 25, or 30 years—with a fixed monthly or annual payment throughout that period. At the end of the term, coverage terminates, or renewal becomes available at substantially increased rates. Term is the most affordable method to obtain meaningful coverage during the period when a family depends most on that income.
Permanent life insurance (including whole life and universal life products) is structured to provide coverage for your entire life and accumulates a cash value component over time. For the same death benefit, permanent policies cost substantially more in premiums, and the cash account builds gradually in the opening years. Permanent coverage is appropriate for people facing ongoing needs that will not end: lifelong care for a dependent, funding an estate for taxes, or a buy-sell agreement for a business.
How to choose
Begin with the need, not the insurance type. When your need has a finish line—a home loan that will be cleared, children approaching adulthood—term coverage aligns naturally. When the need extends indefinitely, permanent insurance or a convertible term policy works better. Numerous carriers permit conversion of term to permanent without re-underwriting during a specified window; the quote tool identifies each carrier's conversion options.
What people in San Marcos often do
Many households find success with a 20- or 30-year term covering their significant obligations, with a review scheduled when life circumstances shift. This approach maintains affordable monthly payments while ensuring adequate coverage when the need is greatest. Susman Insurance Agency is available to explore permanent insurance if your situation includes obligations that will extend beyond a typical term.