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 set death benefit during a fixed span—typically 10, 15, 20, 25 or 30 years—paid as a fixed monthly premium. At end of term, coverage terminates or renews at considerably higher rates. It delivers the lowest-cost method to obtain a meaningful death benefit during a family's most vulnerable years.
Permanent insurance (including whole life and variable universal life plans) stays effective throughout your lifetime and accumulates monetary value within the contract. Cost per month is significantly higher than term for equivalent protection, and cash accumulation is slow at first. Choose it for situations requiring lifelong coverage: a dependent needing permanent care, wealth transfer for estate purposes, or business continuity arrangements.
How to choose
Approach this by beginning with your actual need rather than the insurance product. When your need has an expiration—a mortgage to be repaid, kids becoming independent—term covers that straightforwardly. When the need persists indefinitely, permanent coverage or convertible term might be suitable. Numerous carriers permit converting term to permanent absent new medical underwriting during a specified window; pricing specifics appear in the quotes.
What people in Richmond often do
A typical strategy involves selecting a 20- or 30-year term sized appropriately to actual household financial obligations and revisiting it as circumstances evolve. This method keeps costs reasonable while purchasing an appropriate sum now, which matters most. Susman Insurance Agency is happy to discuss permanent options for any ongoing needs you foresee.