Best Life Insurance Companies in New Jersey

Buying life insurance provides your loved ones with a financial benefit that covers their ongoing expenses after your death. Shopping for life insurance companies in New Jersey can be overwhelming, especially if it's your first time purchasing life insurance. MoneyGeek can help, as we compare policies in the market to help you find affordable life insurance quotes in New Jersey. While the rates can vary depending on age, gender or smoking history, we’ll help you find the cheapest policies from the best life insurance companies in New Jersey.

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Best Cheap Life Insurance in New Jersey

A low coverage amount requires low monthly premiums. Based on a default coverage amount of $250,000, MoneyGeek found that Transamerica offers the most affordable average policy for New Jersey men at $9.68 monthly. Meanwhile, MassMutual offers the most affordable policy for women at $9.41 monthly, on average.

While basic coverage fits within many people’s budgets, it might not be enough to help you protect your family, especially if you have young dependents. At MoneyGeek, we suggest taking into consideration your beneficiaries’ monthly ongoing expenses, average debt, average income and several other factors.

MoneyGeek determined that an average person in New Jersey will need a policy worth $965,000 to adequately cover these costs. After comparing life insurance companies in New Jersey, we found that, for a policy worth $965,000, Nationwide offers the most affordable monthly premiums at $24.02 for men, on average. Transamerica and MassMutual both come close, with highly competitive average rates of $24.16 for New Jersey men. Nationwide is the most affordable option for women with average monthly premiums of $17.87 for this coverage level.

Best Cheap Life Insurance Companies in New Jersey: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $965k
  • Nationwide
    $11.81
    $24.02
  • MassMutual
    $11.10
    $24.16
  • Transamerica
    $9.68
    $24.16
  • Mutual of Omaha
    $12.47
    $26.12
  • AAA
    $13.42
    $30.36
  • State Farm
    $17.84
    $42.18
  • Prudential
    $29.82
    $69.33
  • Progressive Life
    $16.53
    $71.88
Best Cheap Life Insurance Companies in New Jersey: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $965k
  • Nationwide
    $10.43
    $17.87
  • MassMutual
    $9.40
    $18.72
  • Mutual of Omaha
    $11.22
    $19.03
  • Transamerica
    $12.58
    $32.20
  • State Farm
    $20.18
    $45.52
  • AAA
    $16.63
    $48.39
  • Progressive Life
    $19.19
    $52.48
  • Prudential
    $16.22
    $58.80

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in New Jersey using average buyer profile statistics in New Jersey, including average age of 32, average weight of 181 pounds for males and 144 pounds for females, and an average coverage need of $965,000.

What Is the Average Cost of Life Insurance for Companies in New Jersey?

Your monthly premiums are determined by your personal profile. Gender is one of the primary factors that determine whether your monthly costs are lower or higher, with females typically paying more affordable rates because women have a longer life expectancy than men.

On average, women pay a monthly premium of $16.32 for a policy with $250,000 coverage in New Jersey. Men pay an average $17.27 monthly premium for the same coverage.

To reach the recommended life insurance coverage level of $965,000, you will need to pay higher monthly premiums. Life insurance quotes in New Jersey offering $965,000 of coverage cost an average of $44.18 per month for women and $46.23 for men.

Most Popular Life Insurance Companies in New Jersey

When overwhelmed with options, you want to start with the best life insurance companies in New Jersey with the highest market share. This helps you narrow down the long list of life insurance companies in the state. Since market share is calculated as the number of policies written by a company in relation to the total number of policies issued in your state, it implies you're buying from a popular company with strong financials.

The top three most popular life insurance companies in New Jersey hold approximately 25.18% of the market. Prudential Financial Inc. is the most popular life insurance company in this state, with a market share of 9.71%.

Most Popular Life Insurance Companies in New Jersey

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  • Company
    Market Share
  • Prudential Financial Inc.
    9.71%
  • MassMutual
    7.77%
  • Northwestern Mutual
    7.70%
  • Guardian
    7.70%
  • Lincoln Financial
    6.05%
  • New York Life
    5.98%
  • Brighthouse Financial
    3.77%

Life insurance market share data for New Jersey is based on total premiums written in the state and was sourced from 2020 S&P Global Data reports.

Which Companies Have the Best Life Insurance Rates for Young People in New Jersey?

The younger you are, the more affordable your policy will be. Because age is another important factor that determines your rates, younger buyers (as low-risk individuals) are able to find cheaper life insurance quotes in New Jersey. If you want to save money on life insurance, buying a policy while you’re still young is a good idea.

On average, the least expensive options for young people in this state are:

  • Transamerica: $17.94 per month
  • MassMutual: $19.42 per month
Best Life Insurance Companies for Young People in New Jersey

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  • Company
    Monthly Cost
  • Transamerica
    $17.94
  • MassMutual
    $19.42
  • Mutual of Omaha
    $19.43
  • AAA
    $23.23
  • State Farm
    $23.95
  • Prudential
    $24.92
  • Nationwide
    $25.81
  • Progressive Life
    $28.17

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in New Jersey who is 5 ft 10 inches and 154 pounds that purchases a 20-year term contract at the average coverage need of $380,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.

Which Companies Have the Best Life Insurance Rates for Seniors in New Jersey?

The older you are, the more you will pay for coverage since you are riskier to insure. However, for senior buyers with adult children that no longer need financial assistance, you may be able to lower your premiums with coverage that is significantly less than the amount we usually recommend. In New Jersey, MoneyGeek analyzed policies with $113,000 coverage for seniors, as this should be enough to cover your final expenses.

Based on our study, the cheapest life insurance companies in New Jersey for seniors include, on average:

  • Transamerica: $40.58 per month
  • MassMutual: $42.51 per month
Best Life Insurance Companies for Seniors in New Jersey

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  • Company
    Monthly Cost
  • Transamerica
    $40.58
  • MassMutual
    $42.51
  • Nationwide
    $44.19
  • AAA
    $45.50
  • State Farm
    $46.21
  • Mutual of Omaha
    $48.43
  • Progressive Life
    $69.17
  • Prudential
    $87.07

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in New Jersey who is 5 ft 10 inches and 181 pounds that purchases a 10-year term contract at the average coverage need of $113,000.

Which Companies Have the Best Life Insurance Rates for Smokers in New Jersey?

Generally, a person’s smoking history increases their monthly premiums. Life insurance companies in New Jersey charge higher premiums for smokers than non-smokers as they have a significantly higher risk profile. Comparing the prices from different life insurance companies in New Jersey ensures you get the best rates.

If you’re a smoker, the most affordable average policies from life insurance companies in New Jersey are:

  • Transamerica: $143.66 per month
  • State Farm: $168.98 per month
Best Life Insurance Companies for Smokers in New Jersey

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  • Company
    Monthly Cost
  • Transamerica
    $143.66
  • State Farm
    $168.98
  • MassMutual
    $170.24
  • Nationwide
    $178.63
  • Mutual of Omaha
    $179.65
  • Prudential
    $194.22
  • AAA
    $195.89
  • Progressive Life
    $262.74

Rates were determined by analyzing quotes for a 32-year-old male smoker in New Jersey who is 5 ft 10 inches and 181 pounds that purchases a 20-year term contract at the average coverage need of $965,000. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide longer coverage as rates for smokers increase dramatically as you age.

New Jersey Life Insurance Laws You Should Know

The average life insurance quotes in New Jersey presented by MoneyGeek help you find the best rates available in the state. Apart from being wary of different life insurance scams, another thing you should know is how New Jersey’s life insurance laws affect you as a potential buyer.

  • The “free look period” is a period wherein you can explore your policy without financial commitment. In New Jersey, this lasts for 10 days. A test drive on your policy helps you answer some questions you may have about your coverage and determine if it’s a good fit for your needs. Under this law, you can receive a refund if you choose to cancel your policy.

  • The grace period is an additional period to settle missed payments. The grace period usually lasts 30 days from the due date. Under this law, the life insurance provider cannot cancel your policy due to missed payments.

  • The allowable timelines to settle a claim law is a deadline for insurance companies to cover claims upon death document submission. The provider should be able to pay a claim within 30 days. Otherwise, they will need to pay interest on the unpaid amount.

  • The contestable period is a law that protects the provider, allowing them to question a claim. If they find untrue or misleading statements in your policy documents, they may be able to reduce the amount of coverage. In the worst cases, they can even deny coverage entirely.

Methodology

MoneyGeek used per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt and average age to determine the recommended life insurance coverage amount in New Jersey.

Since a person’s profile determines the quotes, you might find that you have either higher or lower rates compared to the average. Asking for a personal quote is still the best action to determine specific rates.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


sources
  • New Jersey Department of Banking and Insurance. "Life Insurance." Accessed August 30, 2021.