In the US, life insurance falls under the domain of each state. These are the laws that will protect you when you’re purchasing a policy in New Jersey, plus our list of the best life insurance providers across the state.
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How much does life insurance cost in New Jersey?
Your premium is a product of your age, gender, driving record, occupation, hobbies, health and family medical history. We were unable to confirm whether the state you live in affects life insurance rates.
However, some experts say people in states that are privy to natural disasters — like tornadoes — might pay more for coverage. During winter, New Jersey is often slammed with severe storms and blizzards, so this might impact life insurance rates.
What risk factors will life insurance providers consider if I live in New Jersey?
Living in New Jersey, your life insurance carrier might take the following risk factors into account when calculating your rate:
- Age. Typically, young people pay less for life insurance. Underwriters look at life expectancy figures, and New Jersey residents can expect to live to an average age of 77.8 years.
- Weight. Overweight and obese people are more likely to face serious health issues, like heart disesase and diabetes. To protect themselves, life insurance companies often charge higher premiums. At 27.3%, New Jersey has the eleventh lowest adult obesity rate in the nation.
- Tobacco use. Smoking tobacco is linked to heart disease, stroke and COPD, so non-smokers usually pay less for life insurance. In New Jersey, 14% of adults smoke — which is lower than the national average of 17.1%.
- Occupation. Life insurance is more expensive for people who walk into dangerous workplaces every day. The most hazardous industries in New Jersey are transportation and material moving, construction and extraction, according to the US Bureau of Labor Statistics.
- Gender. Across the country, men have an average life expectancy of 76.1, and the number for women is slightly higher at 81.1. As a result, women might score lower rates.
- Driving record. Is your driving record free from DUIs and major traffic violations? You’ll probably pay less for coverage. Underwriters assess accident and crash data, too. In 2017, the National Highway Traffic Safety Administration (NHTSA) recorded 624 driving-related deaths in New Jersey — and 125 were associated with alcohol use.
- Lifestyle and hobbies. If you count racecar driving, skydiving or any other extreme sports among your hobbies, your insurer might raise your rate.
What are New Jersey’s leading causes of death?
These are the state’s leading causes of death, according to the Centers for Disease Prevention and Control (CDC).
- Heart disease — including Coronary Artery Disease (CAD)
- Accidents — including motor vehicle accidents, unintentional falls and accidental exposure to fire and smoke
- Chronic Lower Respiratory Disease — including emphysema and asthma
- Septicemia (sepsis) — often linked to lung, urinary tract, skin, intestine and gut infections
- Kidney disease
- Flu and pneumonia
Does New Jersey have any life insurance laws I need to be aware of before applying?
Yes. Title 17 of the New Jersey Statutes lays out the law with the aim to protect policyholders. These are the highlights:
- The “free look” period. Any resident who purchases a life insurance policy has 10 days to change their mind and receive a full refund of any premiums paid. Some insurers generously offer a 14-day free look period, but 10 is the legal minimum.
- Claims payments within 60 days. In New Jersey, life insurance companies must process claims as soon as possible — and within two months of receiving proof of death from the policyholder’s beneficiary. After that point, they’re required to add interest to the total death benefit.
- Life insurance policies are guaranteed. If you continue to pay your premiums, you can rest assured that your beneficiaries will receive a payout. In the Garden State, life insurance policies are backed by the New Jersey Life and Health Insurance Guaranty Association. The guarantee caps out at $300,000 in death benefits and $100,000 in lost cash value.
New Jersey has a fairly standard set of life insurance laws, so the rate you’re offered will come down to your providers and personal profile. To get the best possible coverage, compare life insurance carriers, as well as policy features and riders.