New Jersey Life Insurance

New Jersey life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes New Jersey life insurance regulations.

  • Explains the New Jersey Guaranty Association's protection.

  • Links to more information on life insurance in New Jersey

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New Jersey life insurance rights and regulations

The insurance industry in New Jersey is regulated under Title 17 of the New Jersey Statutes. These statutes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such protection is the 10-day "free look" period required on all life insurance policies. During this time period, a new policyholder can choose to decline the coverage and still receive a full refund of premiums.

Another protection lies in the guaranteed 30-day grace period on late payments that all New Jersey life insurance policies must carry. An insurer cannot cancel the policy during this window, and coverage will continue uninterrupted so long as the account is brought current.

Life insurance claims in New Jersey should be settled in a timely manner. This means that final payment should be made within two months of the insurer receiving proof of death.

However, New Jersey law extends some protection to insurers as well. Insurance companies may contest any information on a policy or application within its first two years. Misstatements, even accidental ones, can result in policy cancellation.

A misstatement of age can be discovered at any point during the life of a policy. In this case, the death benefit will be adjusted to reflect the actual age of the insured.

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If you are ready to apply for a New Jersey term life insurance policy, or if you just want a quick online quote, visit Netquote now.
If you are not sure about what type of life coverage you want, you can also try Insurecom. They will put you in touch with agents who can answer any questions that you might have.

The New Jersey Life Guaranty

If your life insurance policy is underwritten by a licensed insurance company, you qualify for the protection of the New Jersey Life and Health Insurance Guaranty Association. This organization helps compensate policyholders in the event of insurer bankruptcy.

However, the protection does have restrictions. Compensation for lost death benefits in New Jersey is limited to $300,000, and compensation for cash surrender to $100,000.

Further, an insurer must be licensed in New Jersey to qualify for the backing of the guaranty. You can check the status of your insurer by contacting the New Jersey Division of Insurance at 1-(800) 446-7467 or (609) 292-5316.

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Apply for a quote with confidence at Netquote
(for New Jersey term life insurance), or Insurecom.
Your insurer will be licensed in New Jersey.

More NJ life insurance help

If you want more help getting the best value on your NJ life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about NJ life insurance laws and regulations, visit the state's official website at the New Jersey Department of Banking and Insurance.

For more help . . .

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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