Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life pays out a set amount if you pass away within your chosen period—typically 10, 15, 20, 25, or 30 years—with your monthly payment staying the same. After the term ends, you stop having coverage or can renew at much higher rates. It's the cheapest way to get big protection when your family needs it most.
Permanent life (whole life, universal life, and similar types) covers you for your entire life and builds cash value you can access. For the same death benefit, you'll pay much more, and the cash value accumulates slowly at first. This works for people who need coverage forever: a family member who'll always depend on you, money for estate taxes, or handing down a family business.
How to choose
Start with what you need, not with insurance types. If your obligation ends—your mortgage gets paid off, kids grow up—term insurance fits perfectly. If you'll need coverage forever, permanent insurance or a convertible term policy makes sense. A lot of carriers let you switch term to permanent without redoing medical exams within a certain timeframe; check the quote tool for each carrier's rules.
What people in Moorpark often do
Many people buy a 20- or 30-year term policy that matches their true obligations, then update it as life changes. The low cost lets you buy plenty of protection now, which is most important. If you later realize you need coverage for life, Susman Insurance Agency can talk through permanent insurance.