Guide
Term vs. permanent life insurance
What each kind is for, what it costs, and why most families start with term.
Term life insurance covers a defined period—typically 10, 15, 20, 25 or 30 years—and pays out a fixed benefit if death occurs during that span, with steady payments. When the period expires, insurance stops or renews at substantially higher cost. This approach provides the most affordable death benefit for the critical years when dependents need protection.
Permanent insurance (whole life, universal life and related products) is designed to last your entire life and accumulates savings inside the contract. The payments are substantially higher for the same death benefit, and cash accumulation is slower initially. This is appropriate when you have indefinite obligations: permanent dependents, settling an estate, or succession planning for a business.
How to choose
Begin with the obligation itself, not the policy type. For obligations with a natural end—a thirty-year mortgage, children aging out of school, or a business loan being repaid—term coverage aligns naturally with the requirement. For never-ending obligations, permanent insurance or term with a conversion provision may be right. Many carriers permit converting term to permanent at no additional medical review within a defined period; this site displays each carrier's conversion availability.
What people in Lincoln often do
A sound strategy is a 20- or 30-year term policy matched to concrete household obligations, reassessed when life changes. This approach keeps premiums affordable enough to buy appropriate coverage when you need it most. Susman Insurance Agency is happy to discuss permanent alternatives if lifelong protection is part of your requirements.