Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term insurance delivers a stated amount if death occurs in a fixed window—commonly 10, 15, 20, 25 or 30 years—at a consistent cost. Once the span is over, protection stops or rates jump sharply. This is the most affordable way to get substantial coverage during the family's dependence period.
Permanent insurance (whole life and variants) continues for your entire lifetime and builds an internal cash reserve. Monthly payments run significantly higher for the same protection, and the cash grows slowly at first. Suits those with indefinite obligations: a lifelong dependent, wealth transfer, or ownership succession.
How to choose
Start with what needs protecting, not which type exists. If the need has a finish date—loan payoff, kids grown, business loan ends—term fits like a glove. If it lasts forever, you may want permanent coverage or a term policy with conversion. Most carriers let you convert term to permanent without fresh medical exam within a window; quotes show those terms.
What people in Los Altos often do
A standard strategy is purchasing 20 or 30 year coverage matching real finances, then reassessing as things shift. The approach keeps premiums low enough to get sufficient coverage today—and that's the critical point. If your situation includes indefinite needs, Susman can suggest permanent options.