Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance provides a fixed death payment if death occurs during the policy term—typically 10, 15, 20, 25 or 30 years—with a locked premium. When the term ends, coverage stops or renews at much higher rates. It's the lowest-cost way to get substantial protection for the years your household needs it.
Permanent insurance (including whole life, universal life and similar products) remains active for life and accumulates cash value inside the policy. Monthly costs are substantially higher for the same death benefit, and the cash value builds slowly at first. It works for people with long-term needs: lifelong dependent care, estate settlement or business continuity.
How to choose
Start with the need, not the product. A need with a finish line—a mortgage to pay off, kids becoming independent, a business loan maturation—matches perfectly with term. A need without an end—always-necessary dependent support, estate funding—calls for permanent coverage or a term policy with conversion rights. Most carriers allow converting term to permanent without fresh medical underwriting if you act during the conversion window; quotes on this site show each company's conversion options.
What people in Hollister often do
Many households pick a 20 or 30-year term based on actual obligations, then revisit when circumstances shift. This strategy keeps the premium affordable so you can get sufficient coverage now. Susman Insurance Agency can explore permanent options if you have a need that doesn't have an end date.