Life insurance provides coverage after your death by paying a lump sum to your beneficiaries. Beneficiaries can use the money paid for any purpose, including paying bills, college, mortgage, or final expenses.
Unfortunately, finding the right policy can be difficult due to various state regulations and life insurance options. Fortunately, many reputable New Jersey life insurance agents can help you find a suitable life policy catering to your insurance needs.
In determining how to purchase life insurance, you must first consider what life insurance policy is best for you. The best type of life insurance policy for you will depend on your family responsibilities, personal circumstances, specific needs, how much coverage you need, and your budget. Typically, there are two main types of life insurance in New Jersey:
Use the life insurance quote comparison worksheet to help you shop for coverage.
New Jerseyans often ask - “what is the best life insurance to get?” The answer is determined by their specific insurance needs and budget. Even though life insurance will pay a lump sum to your beneficiaries if you die, you should consider the factors listed below when faced with the question, “should I get whole life insurance or term life insurance?”
In the end, answering the question “what is the best life insurance to have” will depend on your specific needs and the benefits you desire for your beneficiaries.
Aside from choosing the life insurance type that suits your needs, you may also need to ask your New Jersey life insurance agent questions like:
Before you choose the life insurance company offering you the best deal, ensure you thoroughly research their customer reviews and financial strength. Getting multiple quotes is also an excellent way to compare the various life insurance options available from different life insurance companies. You can consult a New Jersey-licensed life insurance agent to know which life insurance company is best for you. An insurance agent can also provide information on how to shop for life insurance, how to pick life insurance, and how to buy life insurance wisely to ensure you save money.
Getting the right life insurance policy is vital to your financial planning, but finding the right coverage may be challenging. One of the first questions people ask when buying life insurance is whether they need it. Even though different personal and financial situations may affect your need for life insurance, it can be a valuable asset. You need life insurance if:
If you have a life insurance policy sponsored by your employer but are not sure it will provide a sufficient safety net, consider getting additional coverage outside your employer's plan. Using the steps below can help you focus on purchasing the right life insurance policy that fits your specific needs:
Step 1: Decide how much life insurance coverage you need
In addition to determining whether you need coverage, it is important to determine the amount of coverage that's right for you. You should consider buying enough life insurance to support your financial dependents for several years following your death, based on your financial situation.
Step 2: Choose a life insurance policy type
In New Jersey, there are two major types of life insurance coverage: permanent and term life insurance. Even though there are many types of permanent life insurance policies, the focus will be on universal and whole life insurance. Term life insurance is typically cheaper, while permanent life insurance, on the other hand, is more expensive because it offers more benefits.
|How Term Vs Whole Vs. Universal Life Insurance Coverages Work|
|Term life insurance||A term life insurance policy is typically the cheapest for young people in New Jersey. It provides financial support to the beneficiaries of your estate, such as your children or spouse. If you pass away during the policy term, the insurance company will pay a lump sum to your beneficiaries. However, the benefits will stop once the term is over, unless the policy is convertible or renewable.|
|Whole life insurance||A whole life insurance policy provides lifetime protection with cash value and fixed premiums. It may also be eligible for dividends if the company's financial performance is good. Some policies require the policyholder to pay a premium until they die, while others only require a certain amount of years|
|Universal life insurance||Universal life policies in New Jersey allow people to accumulate cash value, which can grow at a fixed interest rate or a market rate. There are various types of universal life insurance policies, including variable universal life insurance and index universal life insurance.|
|Adjustable life insurance||This is a hybrid type of life insurance that combines whole and term life insurance. It allows New Jerseyans to change the policy's features, such as the premium payment period and period of protection. In addition to the usual features, adjustable life insurance policies also feature an interest-bearing savings account. Unlike other types of life insurance in New Jersey, adjustable life insurance does not require people to purchase additional policies if their circumstances change. People can change the policy's features by making changes to its limits. The changes include increasing or decreasing the face amount, extending or shortening the protection period, or reducing the premium payment period.|
NOTE: If you need clarification about whether you should get whole life insurance or term life insurance, consult with a New Jersey licensed life insurance agent to find out which life insurance policy will best meet your needs.
Step 3: Research different life insurance carriers: Make sure that you thoroughly research the various life insurance company options available to you. The best life insurance company can help you meet your financial needs while providing coverage options that fit your insurance needs, competitive rates, and a positive customer experience..
Step 4: Request multiple life insurance quotes: After you have found a few potential life insurance providers, get quotes from each one. Although most companies do not provide prices for their regular premiums on their website, shopping around for multiple quotes can help determine which is more affordable. Most major life insurers in New Jersey have online quote generators that allow you to get an instant rate life insurance quote. When generating quotes online, you will be asked to provide personal information, such as age, address, and gender. You will also be asked to provide medical history information, including your past surgeries and medications. Although it is not necessary to provide medical records to get a quote, the insurance company will use this pertinent information to determine your premium. When looking for quotes online, you should contact a New Jersey-licensed life insurance agent to help you shop for multiple quotes.
Step 5: Find out if there are any life insurance riders: Although life insurance policies generally offer primary benefits, they can also be customized with riders, which allows you to add additional benefits and coverages that you wouldn't get with a standard life policy. Some riders may increase your premium, while others may be free:
|Some Life Insurance Riders|
|Riders that will not increase premium||Accelerated Death Benefit Rider||This rider can help you get the death benefits you are entitled to before you die if you are diagnosed with a terminal illness|
|Accidental Death Benefit Rider||This type of rider increases your surviving spouse or child's benefits if you die due to an accident|
|Riders that will increase premium||Children's Term Rider||Parents can add their children to a life insurance policy with this rider.|
|Waiver of Premium Rider||This waiver protects you from the financial burden caused by an injury or illness that may leave you disabled|
Step 6: Fill out an application: After you have chosen a provider, the next step is to apply for life insurance. You will be asked to provide details, such as your name, address, and social security number. You must also provide an Attending Physician Statement (APS). Life insurance policies can be filled out online, which is usually straightforward. The insurance company uses the APS to determine the type of policy that fits your needs and provides the best possible death benefits.
Step 7: Prepare for your secondary interview: After completing an application, an insurance company may require a secondary interview, mainly conducted to confirm the information you submitted. The interview is usually brief and will be scheduled after you submit your physical application. The interviewer will likely ask questions about your lifestyle, financial health, and other life insurance policies you may have.
Step 8: Schedule a life insurance medical exam: Before being approved for life insurance coverage in New Jersey, you must undergo a physical exam. This is similar to a doctor's visit, but the insurance company's medical examiner will take your vitals and draw blood. The exam usually lasts around 30 minutes and can be scheduled during your secondary interview. Some life insurance policies don't require a medical exam. In most cases, you can be approved without an in-person examination if you meet the requirements for your preferred type of insurance. However, this method can be more expensive for the insurance company due to the risk involved. Taking it is a good idea if you're healthy enough to pass the medical exam. Life insurance companies offer lower premiums if you pass.
Step 9: Wait for approval: Once the application is complete, the next step is for the insurance company to review the pertinent information that you provided. They will then determine if you are eligible for coverage and the premium you are paying. Usually, the approval process for life insurance in New Jersey takes around one month. After receiving approval, you will be sent the documents related to your insurance policy. This process usually involves using a digital signature, though it can still be done with a physical copy. You can also decide to pay monthly or annually as a single premium. After the documents are signed, you'll be asked to mail a copy to your insurance company. It is advisable to keep a second copy of the document safe with you.
Regardless of the type of life insurance policy, there is a free look period. The average free look period for life insurance policies in New Jersey is 10 days after it's received. Although it is usually easier to get quotes on life insurance online, it is still important to speak with a New Jersey-licensed life insurance agent to shop and purchase a policy suitable for your needs and budget.
Life insurance can provide financial security to your family if something unfortunate happens. You can get life insurance with a serious pre-existing medical condition in New Jersey. However, it might cost you more because the insurance company might consider you a higher risk. Over 3.8 million New Jerseyans have pre-existing conditions, and over 476,800 are children. An insurance company typically considers the following pre-existing conditions:
Before getting a life policy in New Jersey, you must inform your provider about your pre-existing medical condition. This will help them determine whether they should offer you a policy and how much they should charge. Follow these steps to get life insurance with a pre-existing condition in New Jersey:
|Life insurance for Type 1 diabetes||For people with type 1 diabetes, the insurance industry may be less strict regarding coverage because the condition has been under control for a long time.|
|Life insurance Type 2 diabetes||Unfortunately, many providers will not provide coverage for people with type 2 diabetes because it can be hard to manage, leading to more health complications. You can still find life insurance with type 2 diabetes that provides coverage for this condition, but the premium will likely be higher.|
Prepare for an interview: When you apply for a life insurance policy in New Jersey, you will be asked questions about your lifestyle and general health. If you inform them that you have a pre-existing condition, they will likely ask you more specific questions, like how long have you had the condition? If you are on any medication? If you have been admitted to the hospital recently or before? Is there a family history of the condition?
You may also be asked to undergo a medical examination, consult with your doctor to provide your medical records to the insurance company. Although this process may make you feel uneasy, you will be required to give your permission for them to access your records. Make sure to answer the questions truthfully and accurately. This is because if you want your policy to remain valid, you must provide only correct information. If you do not provide the necessary details, the insurance company may be unable to process and pay for your claim because to invalid details
Determine the policy you will get: You should get and compare the different life insurance policies available when you have a pre-existing condition. Typically an insurance company in New Jersey will offer you the following type of policies:
|Policies with exclusions||This type of life insurance policy will only pay out if the insured’s death is unrelated to their pre-existing condition. This policy can be helpful if you have difficulty obtaining coverage, but ensure you understand what's covered and what's not.|
|Policies without exclusions||You may be charged a higher premium for life insurance due to your pre-existing condition. This type of policy is usually called a “loaded premium” because you're required to pay more to cover the increased risk. You can still get life insurance without exclusion if you have a pre-existing condition. Since your condition increases your risk, the cost of your insurance may also be higher. For instance, your premium might be higher if you have high blood pressure. The amount of your premium will depend on how well your condition is managed|
How to get life insurance with a pre-existing condition is best answered if you consult with a New Jersey licensed life insurance agent. The agent can shop around for policies that give you affordable rates irrespective of your pre-existing condition.
The amount of life insurance you need will depend on your situation. Usually, the amount of life insurance you need will be determined by how much money you need to care for your dependent and sort out other financial obligations you may have. How much life insurance you need can be answered by considering the following questions:
There are several rules of thumb that you can use to determine the question of "how much life insurance do I need and how much life insurance should I buy."One of these is multiplying your current income by a specific amount like 10X. For example, if you earn $50,000 annually and then multiply it by 10 you require $500,000 ($50,000 x 10) life insurance coverage. Likewise, you can also determine how much you need by calculating all of the expenses and obligations your family will require after your death. In the end, when determining how much life insurance coverage you will need to provide financial security for your dependents and cover your other financial obligations, it is best to consult with a New Jersey-licensed life insurance agent. The life insurance agent can help evaluate your needs and determine how much coverage will be enough to care for your dependents and obligations after your death
Life insurance in New Jersey on average costs $200-$700 annually or $16-$60 monthly. Even though insurance rates are centrally regulated and fixed by the NJDOBI, the rates can vary from one insurer to another, depending on the coverage type and circumstances of the person taking out the policy. The insurer will consider the age, health status, and gender of the insured.
|Average Monthly Cost of a 20-year Term Life Insurance Policy for Healthy and Nonsmoking Young Adults in NJ|
|Age||Gender||Death Benefit Amount|
It would cost about $35-$70 per month per each $1 million of 10-year term life insurance coverage for a mid 40’s non-smoking male without any medical history. $70-$140 per month for 20-year term and $105-$210 for a 30-year term life policy.
If you wait until your mid 50’s to get life insurance, a male without health issues would be already paying $100-$200 per month per each $1 million of coverage, per each 10-year-term: $180-$360/mo. for a 20-year policy, and $370-$630mo. for a 30-year term.
Meanwhile the average monthly cost of a whole life insurance policy for a healthy and nonsmoking person can be:
|Average Monthly Cost of a Whole Life Insurance Policy for Healthy and Nonsmoking Adults in NJ
(males and females)
|Age||Death Benefit Amount|
|Note: Lower value in the range is for Females, highest value is for Males|
The longer you wait to lock yourself into an unchangeable premium - the more you will pay.
To get the actual life insurance rates based on your needs - speak with a New Jersey licensed life insurance agent who has access to multiple competing insurance companies.
The premium for life insurance is usually determined by the insured’s life expectancy. The younger you are the lower your life insurance premiums. Usually, life insurance companies use several terms such as super preferred, standard and preferred to classify interested individuals. The company then calculates the premium based on your risk class. Each insurance company has its evaluation process typically called life insurance underwriting. This is why it is best to get and compare quotes from at least three life insurance companies when looking to purchase coverage. The following factors affect the rates of life insurance:
The type of life insurance that you choose also affects the cost of your policy:
Adding life insurance riders can also increase the cost of your policy. For instance, a rider attached to a life insurance policy worth $500,000 may cost an additional $20 to $40 annually.
When buying a life insurance policy, the question “how much does life insurance cost” can best be answered when you consult with a New Jersey-licensed life insurance agent to help you shop around for affordable quotes that are most suitable for your needs.
Life insurance companies in New Jersey provide several means through which you can calculate how much life insurance you have. You can calculate your life insurance needs through any of these means:
This method will help you determine how much life insurance you need based on your financial obligations minus your liquid assets:
Step 1: To know what your financial obligation is, you can add up the anticipated future expenses, such as:
Step 2: Subtract liquid assets such as savings, college tuition, and existing life insurance policies from the total. Whatever you have left is the amount of life insurance you need
This requires you to take your annual income and multiply it by 10. So if you make $80,000 annually, you will multiply that by 10. That is $800,000 suggested coverage. Using this method could leave you underinsured, as it does not consider the factors affecting a life insurance policy's value. For instance, it does not factor in your debts and your children's education needs. It also does not work for stay-at-home parents who do not have salaries.
You can add to the 10 times income rule by adding $150,000 per child for college tuition. Although, this method will not take into account other obligations like your assets, family needs, and other existing insurance policies you may have.
Even though it is possible for you to multiply your annual income by more than 10, it may not be enough to determine how much life insurance coverage you will need. This is because this method will not consider your entire income situation and obligations. This is why it is best to use a life insurance calculator to determine how much life insurance coverage you will need.
The DIME formula helps you analyze your finances in more detail. DIME stands for debt, income, mortgage, and education; all these expenses are summed up to determine the amount of life insurance needed. Here is the breakdown:
Summing up the above obligations gives you a more comprehensive view of your financial needs. However, this formula does not take into account the savings and life insurance you have. Also, it does not consider the unpaid contributions made by stay-at-home parents.
One of the best ways to get insurance coverage is to work with a licensed agent. They can help you navigate the various steps in the process, including helping you calculate your needs to determine how much coverage you need.
Many people assume that life insurance policies in New Jersey provide the same level of protection, but this is not the case. There are various types of policies that serve different purposes. It is important to determine whether your chosen provider truly understands your needs and if they can provide you with the best possible service. Choosing the cheapest life insurance policy or signing up with a provider that has been around for a long time won't guarantee that you will receive the best service. Since life insurance is a long-term commitment, it is important to find policies that will provide your loved ones with the most protection while also staying within your budget.
Use the quote comparison worksheet to help you and your agent with the process.
|Top Life Insurance Companies in New Jersey
(in alphabetical order)
|Banner Life (Legal General)|
|Direct Auto Insurance|
|Haven Life (Mass Mutual)|
|Mutual of Omaha|
|National Life Group|
|Plymouth Rock Assurance|
Since life insurance prices vary widely, you can compare free quotes from different life insurers in New Jersey to find the best deal. You can get free quotes on life insurance:
When looking for the best life insurance, you will be required to provide the insurance company with the following:
You can determine how much life insurance you need by understanding your current financial situation. Typically, your financial situation and life insurance goals influence the type of life insurance policy you purchase. Consider working with a New Jersey-licensed life insurance agent to help you review your financial situation in line with your insurance needs. This will help you make an informed decision regarding the type of life insurance most suitable for your needs. The life insurance agent will also help you shop around and compare quotes from multiple life insurance companies in the state to help you find the best possible life insurance policy for your needs.
There are around 1,000 life insurance companies in the United States, with over 300 NJ-licensed insurance companies, giving consumers various life insurance options when looking to purchase a policy. There are a few things that you can do to ensure that you are working with a quality company.
What is the best life insurance provider to choose in the state? It is best to work with a New Jersey-licensed insurance agent. They can help you find the right policy for your needs and budget.
One of the most crucial aspects of getting life insurance is deciding the best life insurance to have. Here are some guidelines to help you make an informed decision on the best life insurance to get.
Type of insurance: You will need to decide the type of life insurance coverage you need based on your needs.
Purchase term life if you want to customize your life insurance policy according to your needs and budget. For instance, the term of your insurance policy can be shorter or longer. Although term life insurance can provide you with significant coverage, it may not cover your needs if you outlive the policy because it only pays a death benefit if you die during the policy term. If you are still alive at the end of the term, the coverage will stop, unless you renew the policy or purchase a new one. Unlike other types of life insurance, you won't be able to build equity using cash savings. You may consider getting a convertible term life insurance policy, which allows you to convert your existing policy into a permanent one without a medical examination, in exchange for a higher premium. Although term life insurance premiums tend to be lower when you're young, they will increase as you age and may require a medical examination at the end of the policy. Some policies will allow you to renew your policy if it expires, but the premium charged will increase.
Purchase permanent life if you want a life insurance policy with a cash value component and death benefit that does not expire until the insured’s death. The cash value component is a savings element that can be used to fund various purposes, like paying for life insurance premiums and other expenses. Even if your credit is not strong, you can still borrow the life insurance policy's death benefit as collateral. The insurance company will determine what is going to the beneficiary after the borrowing company collects its dues. Although term life insurance is generally cheaper than permanent insurance, it is important to note that the premium on a whole policy will remain the same regardless of your age. Also, it can go up significantly with every renewal.
What life insurance is best? When deciding which life insurance is best, consider the variables influencing your financial planning. For example, your exposure to risk and your risk level is one of the significant factors that will help you choose the ideal policy for you. Suppose you have a medical condition, a high-risk job, or engage in risky hobbies for fun. In that case, you should consider getting guaranteed-issue life insurance because it will not require you to submit for a medical exam. Also, having a good understanding of how much life insurance coverage you need and how much you can afford will be based on your finances.
How much: Various factors, such as your income, assets, debts, existing obligations, and beneficiaries, influence how much life insurance coverage you need. It is important to note that life insurance is the only way to guarantee your family's financial protection after your demise.
How long: One important factor you should consider when buying a life insurance policy is the length of time you need to be insured. This will allow you to plan for the future and ensure that your dependents are financially protected after your demise. It will also determine whether you should get term life insurance or permanent life insurance. Permanent life insurance can help you plan for the future so that you can maintain a comfortable lifestyle when you retire because of the cash value component it offers. Conversely, term life insurance is a cheaper alternative, but it is only valid for a limited time, typically 5 - 30 years.
People purchase life insurance policies to provide financial protection to their loved ones after their death. This is because life insurance provides them with a death benefit, which they can use to settle their basic living expenses and cover their funeral and other final life expenses.
If you have any more questions relating to how to choose life insurance that suits your specific needs, consult with a New Jersey-licensed insurance agent.
If you have never purchased life insurance before, it can be complicated because there are many different types of insurance policies that you can choose from and have varying price tags. When planning to purchase life insurance coverage, you should consult an agent to guide you through the application process. A New Jersey licensed life insurance agent is knowledgeable and conversant with various aspects of insurance, including applying a policy. Nonetheless, below is a list of essential steps when applying for the best life insurance policy that suits your needs:
If a life insurance company refuses to provide life insurance coverage, you do not have to accept the decision. An insurance provider denies providing an individual life insurance coverage various reasons. The insurer may have acted in bad faith, misstated their interpretation of your details or may have made a mistake. If you believe or suspect your insurance provider has wrongfully denied you the coverage you should contact a New Jersey life insurance attorney. Your life insurance agent can help you challenge the life insurance denial since you can appeal such denial. One of the first steps to challenge life insurance denial is to write a letter to the insurance provider to appeal their decision. The letter must include the following:
|Description||What it should include|
|Brief opening paragraph||Your opening statement should be short, to the point, and should explain who you are and why you are writing.||
|Body - Your argument against the life insurance provider's denial||Discuss all of the necessary details about your case, and make a strong argument for why the insurer's decision is wrong.||
|Supporting documents||Your letter should also include supporting evidence that proves your claims||
Your hired New Jersey life insurance attorney can help you gather the necessary documents and ensure they contain the necessary supporting evidence. You can find life insurance attorneys in New Jersey through the Lawyer Referral Service of the New Jersey State Bar Association.