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 death benefit payable if you pass away during the covered span—typically 10, 15, 20, 25, or 30 years—in exchange for a fixed annual or monthly payment. Once the term expires, the coverage ceases or can be renewed at significantly higher rates. For most families, it offers the most economical way to secure substantial financial protection during the years of greatest family need.
Permanent insurance (including whole life and variable universal life products) continues for as long as you live and accumulates a cash reserve within the contract. Due to the lifetime coverage, monthly costs are substantially higher for the same death benefit, and the cash component builds gradually at first. Permanent coverage suits those with ongoing needs: someone who will always be dependent, concerns about estate planning, or succession arrangements for a business.
How to choose
Think about what you need first, then match it to the right product. When a need has an endpoint—a mortgage getting paid down, children becoming self-sufficient—term insurance aligns perfectly. For needs that don't end, permanent coverage or a convertible term policy may be more fitting. Many insurers permit conversion of term to permanent without redoing medical screening, provided you convert during the allowed window; the quotes shown here display each carrier's conversion provisions.
What people in Newark often do
Many people choose a 20- or 30-year term policy for the amount their household actually needs, then reassess periodically. Keeping costs down allows you to buy adequate coverage right now—the part that matters. For topics around permanent policies, reach out to Susman Insurance Agency.