How Much is Life Insurance in New Jersey?
How much life insurance you need and the type of life insurance you choose determines the cost of coverage you must pay. The monthly cost of a life insurance policy in New Jersey can be as low as $8 - $10 per month for a basic term life policy with a $250,000 coverage. However, this rate can increase drastically, depending on what you want to use the policy for. The cost varies depending on many factors like:
- Age: It is advisable to buy a life insurance policy at a young age because the older you get, the higher your premiums. For instance, the monthly cost for a 20-year term life insurance policy for a 30-year-old man can be $15-$30/month- for a $500,000 coverage. In contrast, the monthly cost of term life insurance for a 70-year-old male smoker can be $800 or more for the same coverage amount and policy term.
- Gender: Women tend to have a longer life expectancy than men. As of 2020, the life expectancy of women in the United States was 79.9 years, and that of men was 74.2 years. Hence, insurers charge women lesser premiums than men of the same age and health status. For instance, in their 20s, during the cheapest time to purchase life insurance, women tend to pay $2-$3 less than men, per each $250,000 of coverage in New Jersey.
- Tobacco users: Insurers tend to charge smokers higher premiums from smokers because they are at a higher risk of developing health issues such as respiratory disease.
- Health status: Individuals with pre-existing conditions should expect to pay higher premiums than individuals with no health issues.
- Driving record: Insurers consider individuals with DUIs, DWIs, and major traffic violations on their records high risks. Hence, they charge them higher premiums than individuals with clean driving records.
- Occupation and lifestyle: Individuals with high-risk or dangerous jobs tend to pay higher premiums than those with lower-risk jobs. For example, factory or construction workers should expect to pay higher premiums than persons with desk jobs.
- Policy type: The type of life insurance policy you purchase affects your premiums. Term life insurance policies are far less expensive than permanent life insurance policies because they have no cash value account and a limited coverage period.
- Coverage amount: A life insurance policy with a face value of $1,000,000 will be more expensive than a $250,000 or $500,000 policy.
- Term length: This applies to term life insurance. Individuals with longer-term lengths like 30 years should expect to pay higher premiums than those with short-term lengths like ten years. For instance, the monthly cost of a 10-year term life policy for a 30-year-old non-smoker male with $500,000 coverage is between $13.30 and $27.70. In contrast, the monthly cost of life insurance policy for a non-smoker with the same coverage is between $41.90 and $75 for a 30-year term life policy.
Before buying life insurance policies and to get a life insurance quote, speak with a licensed life insurance agent in New Jersey who is familiar with the insurance market. They will help you compare life insurance quotes from multiple insurers and ensure you settle for an affordable policy that you can use to provide security for your loved ones.
How Much is a Million Dollar Life Insurance Policy?
The cost of a million dollar life insurance in New Jersey varies greatly depending on many factors like age, gender, health status, occupation, and policy type. If the death benefit is the main goal, term life insurance will be the cheapest option, if you can qualify.
| Average Cost of a $1,000,000 Life Insurance Policy in New Jersey | |
| Term life insurance | The monthly cost of term life insurance is between $30 and $80 for a 10-year $1M policy term |
| Whole life insurance | The monthly cost of whole life insurance is between $300 and $400 |
| Universal life insurance | The monthly cost of universal life insurance is between $180 and $334 |
| Final expense | The maximum death benefit for final expense life insurance is usually $75,000. The monthly cost of final expense is between $30 and $70 |
Can I Get Free Life Insurance in New Jersey?
Yes. Many employers offer free life insurance policies as part of employment packages in New Jersey, but coverage amounts may be lower than individual policies. Also, a keyman insurance policy is free to the insured, but the employer is the beneficiary. Contact your New Jersey-licensed insurance agent to get relevant information on how to get free life insurance policies in the state.
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