Best Life Insurance Companies in Jersey City

FAQs

• What options are there for Jersey City residents who want whole life insurance coverage but flexible premium payments?

  A universal plan is an option for Jersey City residents who want whole life insurance coverage but do not want to pay fixed premiums. These policies are similar to whole life contracts in that they have both death benefits and cash values. However, the payment of premiums is not set in stone and can change over time.

• Why is it sometimes advantageous to opt for a whole life insurance plan in Jersey City over a cheaper term life one?

  In Jersey City, it can be better to choose a more expensive whole life insurance plan over a cheaper term life insurance plan if the insured wants to be covered for a longer time. Term plans have a limited scope, and if the insured person outlives the time frame in the contract, the beneficiaries get nothing. Whole-life policies basically cannot be outlived.

• Why do insurers in Jersey City sometimes require applicants to undergo a medical exam?

  In Jersey City, insurers sometimes make applicants get a medical exam because they do not want to give life insurance to people who are not in good health. For their business model to work, a person has to pay enough in premiums to cover the value of the policy. This will not happen if the insured dies before sufficient premiums are paid.

• Is it a good idea in Jersey City to trust solely on an employer's life insurance plan?

  In Jersey City, it might not be a good idea to depend only on your employer's life insurance plan. Most of the time, these are perks that come with a job and end when a person quits and gets a new one. It cannot be utilized if the insured wants to change jobs or companies while they are still alive.

• Is it safe to rely on insurance calculators in Jersey City when determining how much insurance to get?

  People in Jersey City can use insurance calculators as a starting point to figure out how much insurance they need. They are not meant to be the only thing an applicant uses, and there is no substitute for talking to an expert. You should use these calculators as a first option, but they should not be your only option.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.

• How does life insurance work?

  The details of how life insurance works depend on your individual plan, but the basics are as follows: 

  • You pay a premium to purchase the insurance. Typically the premium is paid monthly, but it could be rolled into quarterly, bi-annual, or annual payments. 
  • As long as you are meeting or have met premium obligations, if you pass away, the insurance company makes the agreed-upon payment to the beneficiaries you designated. 
  • Beneficiaries usually have to provide the insurance company with a death certificate to receive their payments.

• How much is life insurance?

  The cost of life insurance ranges widely. Term life insurance can cost as little as a few dollars a day, and whole life insurance can cost thousands per month on the high end. Factors that impact the cost of your life insurance include whether you're choosing term life insurance or whole life insurance, your age, how much coverage you want, your overall health, and your gender.

• Is life insurance taxable?

  Life insurance proceeds are the funds paid via your plan to your beneficiaries if you pass away. These are also called death benefits. Typically, these are not considered income for taxes. If you take out cash value from a whole life insurance investment and the amount exceeds how much you paid in premiums, the difference may be considered taxable income.

  
  

• Can I buy health insurance that is not Obamacare?

  When people say "Obamacare insurance," they typically mean insurance within the health insurance marketplace. You can get health insurance outside of the marketplace by going through your employer, choosing COBRA coverage if you leave your job, or buying a short-term health insurance policy through an insurance agent. ACA-compliant plans meet all the benefits and coverage requirements of the Affordable Care Act. But you may be able to find supplemental or short-term coverage that simply provides peace of mind for major medical expenses.

• Can I buy health insurance anytime?

  To buy health insurance in the marketplace, you must purchase it within open or special enrollment periods. But you can purchase short-term coverage to bridge the gap between now and the next open enrollment period. These plans are meant to be used for less than a year. You can purchase them online or via insurance agents, but they may not be ACA-compliant.

• Who should buy supplemental health insurance?

  Supplemental health insurance is a product that helps cover the cost of services that your primary health insurance policy doesn't. One popular option is secondary insurance that helps cover some of the costs associated with high deductibles. Medicare supplemental insurance is also popular. Medicare doesn't cover everything, and older adults on a limited income can face large prescription or medical bills after Medicare pays. Supplemental insurance helps reduce those patient costs.