Term life does one job: it pays a death benefit if you die during a set number of years. For covering a mortgage, an income, or children who are not grown yet, that one job is often exactly the right one.
Coverage is subject to underwriting and approval by the issuing insurance company.
Commonly 10, 15, 20, 25, or 30 years — ideally matched to how long the need lasts.
The death benefit your beneficiaries would receive. Premiums are typically level for the whole term.
The coverage ends, or may be renewable at much higher rates, or convertible to permanent coverage if the policy allows.
The useful question is not “how much life insurance should I have?” but “what would my family need to pay for, and for how long, if my income stopped?”
Debts that would not disappear: the mortgage balance, car loans, and other obligations.
Income your household relies on: how many years of your earnings would your family need to replace, and what other income would they have?
Future costs you have planned for: college, care for a family member, or a business obligation.
The answers often point to more than one need ending at different times. Some families cover them with a single policy; others use two or more policies with different terms, sometimes called laddering.
Term policies with the same death benefit and term can differ in ways that matter later.
| Feature | What to ask |
|---|---|
| Conversion privilege | Can the policy be converted to permanent coverage without new medical underwriting? Until what age or policy year? Into which products? |
| Renewability | If you still need coverage when the term ends, what does renewal cost? |
| Riders | Waiver of premium for disability, accelerated death benefit for terminal or chronic illness, child term riders |
| Return of premium | Some policies refund premiums if you outlive the term, at a substantially higher cost |
| Insurer strength | The company’s financial ratings, since the guarantee depends on its ability to pay |
Group life insurance through an employer is valuable, but it is usually limited to a multiple of salary and typically ends or changes when you leave the job. Whether it is enough on its own depends on your situation. Individual coverage stays with you regardless of where you work, and its price is based on your health at the time you buy it.
It depends on the company, the amount, and your age. Some policies are issued based on an application and electronic records alone; others require a paramedical exam and lab work. We can tell you what to expect before you apply.
Life insurance death benefits paid to a beneficiary are generally not subject to federal income tax. Estate tax and other situations can differ. Ask a tax advisor about your circumstances.
Yes. You can stop paying premiums and let a term policy end. Term policies generally do not build cash value, so there is nothing to surrender.
That depends on your family and your estate plan. Naming minor children directly can create complications. Beneficiary designations should be coordinated with your will and any trust.
We will work through the amount and the term with you, then compare policies from multiple life insurance companies.
Cadabra Asset Protection LLC is a licensed independent insurance agency serving New Jersey and Pennsylvania. Michael Lindner Jr., licensed insurance producer.
Life insurance products are issued by the insurance company, not by Cadabra Asset Protection LLC. Policy features, riders, and availability vary by company and by state, and all guarantees are based on the claims-paying ability of the issuing company. Any statements about taxes are general in nature; consult a qualified tax advisor about your situation.
Coverage descriptions on this page are general summaries provided for informational purposes only. Coverage, limits, endorsements, and exclusions vary by carrier and by state, and actual coverage is governed solely by the terms of the issued policy. This page is not an offer of insurance and is not a guarantee that coverage will be issued. All coverage is subject to eligibility and carrier underwriting approval.
Nothing on this page is legal or tax advice, and no attorney-client relationship is created by its use or by contacting this agency for insurance services.
