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 death benefit if you pass away during the term—usually 10, 15, 20, 25, or 30 years—in exchange for level monthly payments. When the term runs out, the coverage ends, or you can renew at a much higher rate. It's the most affordable way to get substantial protection while you need it most.
Permanent insurance (whole life, universal life, and related products) is meant to stay active for your lifetime and builds cash value over time. The monthly cost is much higher than term for the same death benefit, and early-year cash buildup is slow. It's suited to people with permanent financial obligations: a dependent who will always need support, large estate taxes, or a business succession plan.
How to choose
Start with the obligation, not the product. If the financial need has an endpoint—a mortgage getting paid down, kids becoming independent, a business loan expiring—a term policy aligns perfectly. If the need is lifelong, a permanent policy or a convertible term policy might be right. Many carriers allow you to convert term to permanent without new underwriting during a set conversion period. The quotes on this site show each carrier's conversion options.
What people in El Cerrito often do
A practical approach for many households is a 20- or 30-year term policy equal to your main financial obligations, reviewed if major life changes happen. This strategy keeps the monthly cost manageable so you can afford an adequate benefit. If you think you'll want permanent coverage, Susman Insurance Agency can walk you through those options too.