Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance pays the death benefit if you die within the term period—normally 10, 15, 20, 25, or 30 years—at a level monthly premium. After the term ends, coverage either stops or becomes much more expensive per year. It's the most affordable way to buy large protection for the period when your family needs it most.
Permanent coverage (whole life, universal life, and variants) stays in force for your whole life and builds a cash value inside. Premiums run significantly higher for the same benefit, and cash value grows slowly at first. This form fits people with never-ending needs: a dependent with lifelong care, estate planning, or succession in a business.
How to choose
Start with the need, not the product. For needs with an end—a mortgage paid down, children grown, a business loan matured—term matches directly. For a need that won't end, permanent insurance or term with a conversion option may be the answer. Many carriers allow conversion from term to permanent later without re-doing underwriting, and the quotes will show each carrier's conversion windows.
What people in Newport Beach often do
A common choice is 20 or 30 years of term insurance sized to your real obligations, with a review when life changes. This keeps the premium low enough to buy the amount you actually need, which is the key thing. If permanent coverage turns out to be part of your plan, Susman Insurance Agency can review those options with you.