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 flat death benefit if you pass during the contract period (typically 10, 15, 20, 25, or 30 years) with a fixed monthly or annual payment. At the end of the term, the contract expires or continues at sharply increased rates. It's the most economical approach to obtain substantial protection during your family's most vulnerable years.
Permanent coverage (whole life, universal life, and related products) remains active throughout your life and accumulates cash reserves within the policy. Monthly costs are substantially higher compared to term for identical benefits, and those reserves increase gradually at first. This approach works well for individuals facing permanent obligations: a dependent requiring lifelong care, preparing assets for estate settlement, or planning business continuity.
How to choose
Build from your needs first, then select the product. When obligations will conclude—a mortgage gets paid, kids become adults—term protection aligns perfectly. Should you face indefinite needs, permanent insurance or convertible term (switching to permanent later without re-qualifying) may suit you. Numerous carriers permit converting term to permanent during a specified period without fresh underwriting; our quote details specify each carrier's conversion options.
What people in Lincoln often do
Many families start with a 20 or 30-year policy sized to actual financial needs, then reassess as situations shift. This keeps costs manageable so you can afford the coverage that genuinely matters today. If you foresee permanent protection requirements, Susman Insurance Agency is happy to explore those alternatives.