Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life provides a fixed death benefit during a specific period (typically 10 to 30 years) for a level monthly premium. When the term expires, coverage ends or renews at a substantially higher rate. It is the most economical way to secure large coverage during the years a family depends on that income.
Permanent coverage (whole life, universal life, and variations) remains active for your entire life and accumulates cash value. Premiums are much higher than term for equivalent death benefit, and cash value builds gradually. It fits lifelong obligations: a permanently dependent relative, business succession planning, or estate liquidity.
How to choose
Begin with the need, not the product type. Needs with end dates—a mortgage payoff, children's independence—align with term coverage. Lifelong needs may call for permanent coverage or a term policy with conversion rights. Most carriers allow term-to-permanent conversion without re-underwriting within a specified window; each quote displays conversion options.
What people in Chico often do
Many households buy a 20- or 30-year term policy matched to their actual obligations, reviewing the amount when circumstances shift. This keeps premiums affordable while providing solid coverage where it matters. Susman Insurance Agency is available to discuss permanent coverage if your situation includes a lifelong need.