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 death benefit during a fixed timeframe—typically 10, 15, 20, 25 or 30 years—paid through regular level premiums. Once the term ends, protection concludes or continues at significantly higher costs annually. This provides the most economical way to purchase substantial protection during life's most demanding years.
Lifelong Coverage (whole life, universal life and comparable products) remains effective for your entire life and accumulates a cash reserve within the contract. Monthly payments are substantially higher than term for equivalent death benefit, with cash value building gradually initially. This suits households needing permanent protection: ongoing care needs, inheritance planning, or business transition strategy.
How to choose
Begin by determining your actual needs rather than choosing a product type first. For needs with time limits—a mortgage term, children becoming independent—term policies provide clean alignment. When needs persist indefinitely, permanent insurance or convertible term may be appropriate. Most insurers permit converting term to permanent within a conversion window without additional underwriting exams.
What people in Chino often do
A practical strategy: purchase a 20- or 30-year term policy reflecting actual household obligations, adjusted as circumstances shift. This approach maintains affordable premiums while securing needed protection. Susman Insurance Agency is available to discuss permanent solutions if your needs include lifelong coverage.