10 Best Life Insurance Companies in New Jersey
Key Terms
- New Jersey life insurance options range from term to whole life policies, providing tailored financial protection for residents.
- Adequate coverage in New Jersey is advised at 10X to 20X annual income to ensure loved ones are financially secure.
- Unique state regulations include a Free Look Period and specific durations for grace and contestable periods.
Strategically positioned between New York and Pennsylvania, New Jersey, the Garden State, is a vibrant hub for its 8.9 million residents. As the 11th-most populous state, it features Newark as its largest city and Trenton as the capital, highlighting its importance in the northeastern U.S.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in New Jersey is approximately 77.5 years which is lower than the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in New Jersey have been heart disease, Covid-19, and cancer. The murder rate in New Jersey is about 4.3 homicides per 100,000 residents, which is lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in New Jersey, the 90th percentile income is currently $127,240. The median income in the state is roughly $48,200. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your yearly earnings. In New Jersey, this works out to around $1,272,400 – $2,544,800 for the majority of people.
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How life insurance works in New Jersey
Life insurance is typically straightforward and easy to understand. The way it works is that you pay a premium for a policy, and if you die during the term of the policy, your beneficiaries are paid a death benefit. This is typically a lump sum of money that is paid out to your loved ones. The money can be used for anything they see fit, including funeral expenses, debts, living expenses, or anything else.
There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, usually 10-30 years. Once this term expires, so does your coverage. If you die during the term of the policy, your beneficiaries will receive the death benefit.
Whole life insurance provides coverage for your entire life. As long as you continue to pay the premiums, your beneficiaries will receive the death benefit when you die. Whole life policies are more expensive and complicated as they mix investing and insurance. Most people will be better off sticking with simple term life insurance.
If you’re not sure which type of life insurance is best for your situation, then it’s always best to speak with an insurance agent about your options. Like other insurance products such as health insurance, you need to evaluate your own needs before purchasing life insurance. Over time, those needs might evolve as you have more to protect or as you have children and wish to provide more financial support for things like helping a spouse pay off a mortgage or providing for your children’s college. Before getting life insurance quotes, you need to think carefully about a life insurance policy value that would help your surviving loved ones now and in the future.
With so many different life insurance products out there like term insurance plans, universal life insurance, and whole life, all with their own underwriting and coverage options, doing some research before getting the contact information for an agent makes it easier for you to make these big decisions. Ultimately, you might work with someone from an independent insurance agency to pick the right product for you. You can even elect choices from multiple products including life insurance coverage or long term care protection.
