- New Jersey Life Insurance Policies and their purpose.
New Jersey Life Insurance Education Online and Consumer Resources answers.
How much Life Insurance do you need?
Well, the answer isn't really how much life insurance you need... it's how much investment capital your family will need at the time of your death. Their need for capital on a gross basis is really a function of two variables:
How much will be needed at death to meet immediate obligations; and
How much future income is needed to sustain the household.
The first category is fairly easy to estimate. It's the sum of final expenses including uncovered medical costs, funeral expenses and final estate-settlement costs and other lump-sum obligations such as outstanding debts, mortgage balance, and college costs.
The second variable is a bit trickier. It involves calculating the "present value" of future needed cash-flow streams. By talking with our Resident Agent you will get a rough sense of the needs for capital that might exist at your death.
A few tips:
A financial analysis of your needs depends upon the answers you provide. Please answer all questions your agent will need to ask to help you. If you do not understand a question, tell them to "slow down" or speak regular English.
Our Professional Resident Agents have been helping consumers with insurance decisions since 1986.
- Why purchase Life Insurance?
Life insurance is the foundation of a sound financial plan. It provides financial security for your family by protecting your financial resources, such as your present and future income, against the uncertainties of life.
More specifically, life insurance provides cash to your family after your death. This cash (the death benefit) replaces the income you would have provided and can meet many important financial needs: It can help pay the mortgage, run the household, send your kids to college, and ensure that your dependents are not burdened with debt. The proceeds from a life insurance policy could mean that your family won't have to sell assets to pay outstanding bills or taxes. What's more, there is no federal income tax on life insurance benefits (in most cases).
- Choosing the right policy.
Choosing a life insurance product is an important decision, but it can be complicated. As with any major purchase, it is important that you understand your family's needs and the options open to you.
If you are going to make a good choice when purchasing life insurance, you need to understand what type of Life Insurance policies are available. If one type of policy does not fit your needs, then ask and find out about other available Life Insurance policies. You can research more information on life insurance policies by checking with a licensed life insurance agent or a licensed life insurance company. You can also consult life insurance books that are available in your public library, as well as life insurance information available on the Internet.
- New Jersey Group Life Insurance and Conversion Options.
Many employers, including the State of New Jersey, offer life insurance under a group plan and sometimes pay part or all of the premium. A medical exam is usually not required for insurance purchased this way, and the insurance can be less expensive than coverage purchased as an individual.
Upon separation of service or employment the group life insurance policy may be converted to a permanent policy. This converted policy will probably be much more expensive than the group insurance. Policies offered in this manner are different from group insurance, and you should evaluate the materials shown to you in the same way as if you were considering a purchase of an individual policy through an agent.