Life Insurance in New Jersey

Many people in New Jersey consider life insurance a frivolous purchase. There's no law that requires it, and no one likes to think about end-of-life issues. What many don't take into consideration is that people can pass away at any age. Having life insurance ensures that your loved ones, especially those who depend on your income, can maintain their current lifestyle. Our Chester, NJ life insurance agents can help you find the best policy for your budget.

Our insurance agency offers term, whole, and universal life insurance. Term life insurance is very affordable and offers coverage for a set length of time. Once the term is over, the policy expires and you don't pay premiums or have coverage. Whole life insurance is a type of permanent insurance. In a whole life policy, as long as every premium payment is made, the death benefit is guaranteed to the maturity date in the policy.

Universal life insurance is a type of permanent insurance. Universal life is similar in some ways to, and was developed from, whole life insurance, although the actual cost of insurance inside the UL policy is based on annually renewable term life insurance. The advantage of the universal life policy is its premium flexibility and adjustable death benefits. The death benefit can be increased (subject to insurability), or decreased at the policy owner's request.

Many people use permanent life insurance, and in particular cash value life insurance, as a source of benefits to the owner of the policy (as opposed to the death benefit which provides benefit to the beneficiary). These benefits include loans, withdrawals, collateral assignments, split dollar agreements, pension funding, and tax planning.

Life insurance in general has many uses. Common ones include providing for dependents such as children or grandchildren, the care for disabled adult children, covering final expenses, income replacement for surviving spouses, and to protect small businesses from the loss of a manager. The dependents can be named as beneficiaries so that when the insured person passes on, the dependents are still provided for financially, and the benefits, in general pass tax free to the beneficiaries.

If you're ready to learn more about life insurance, our team of experienced and knowledgeable agents at The Insurance Outfit, your local Chester, NJ life insurance agency, are ready to answer your questions and help you instant quotes so that you can get the best value on your life insurance. They are always available to talk to you, learn about your situation and give you advice on which type of life insurance policy is best for your needs. Contact our insurance agency today to learn about your options.

Life Insurance

Life insurance is a simple answer to a very difficult question: How will my family manage financially when I die?

It's a subject no one really wants to think about. But if someone depends on you financially, it's one you cannot avoid. In the event of a tragedy, life insurance proceeds can:

• Pay for funeral costs
• Help pay the bills and meet ongoing living expenses
• Pay off outstanding debt, including credit cards and the mortgage
• Continue a family business
• Finance future needs like your children's education
• Protect a spouse's retirement plans

In this section, you'll find information and interactive tools to help you get a sense of how much and what kind to buy, plus information about how different life events-such as having children or buying a home-can affect your insurance needs.

Contact your Chester, NJ independent insurance agent, The Insurance Outfit, to find out more.

Who Needs It?

If someone will suffer financially when you die, chances are you need life insurance because it provides cash to your family after your death.

This cash, known as the death benefit, replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What's more, there is no federal income tax on life insurance benefits.

To help you understand how life insurance might apply to your particular situation, we've outlined a number of different scenarios below.

You're Married

Many people mistakenly believe that they don't need to think about life insurance until they have children. Not true. What it one of you died tomorrow? Even with your surviving spouse's income, would that be enough to pay off debts like credit card balances and car loans, let alone cover the monthly rent and utility bills? If you're planning to have children, you'll want to buy life insurance now instead of waiting until pregnancy-some companies won't issue policies to pregnant women.

You're Married With Kids

Most families depend on two incomes to make ends meet. If you died suddenly, could your family continue meet all their financial obligations-from paying rent or the mortgage to daily living expenses? Could your family continue their standard of living on your spouse's income alone? Would their plans for the future-like college stay intact? Life insurance makes sure that your plans for the future don't die when you do.

You're a Single Parent

As a single parent, you're the caregiver, breadwinner, cook, chauffeur and so much more. Yet nearly four in 10 single parents have no life insurance, and many with coverage say they need more than they have. With so much responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children's financial future.

You're a Stay-At-Home Parent

Just because you don't earn a salary doesn't mean you don't make a financial contribution to your family. Childcare, transportation, cleaning cooking, and other household activities are all important tasks, the replacement value of which is often severely underestimated. With life insurance, your family can afford to make the choice that best preserves their quality of life.

You Have Grown Children

Just because your kids are through college and the mortgage is paid off doesn't necessarily mean that you no longer need life insurance. If you died today, your spouse will still be faced with daily living expenses. Would your financial plan, without life insurance, enable your spouse to maintain the lifestyle you've worked so hard to achieve now and into retirement?

You're Retired

Depending on the size of your estate, your heirs could be hit with an estate-tax payment of up to 45% after you die. The proceeds of a life insurance policy are payable immediately, allowing heirs to take care of these taxes, funeral costs and other debts without having to hastily liquidate other assets, often at a fraction of their true value. Life insurance proceeds are also generally income tax free and won't add to your estate tax liability, if properly structured.

You're a Small-Business Owner

Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your fellow owners or a key employee died tomorrow? Life insurance can help in a number of ways. For instance, a life insurance policy can be structured to fund a buy-sell agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. That way, the owners get the business and the family gets the money. To protect a business in case of the death of a key employee, key person insurance, payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.

You're Single

Most single people don't need life insurance because no one depends on them financially. But there are exceptions. For instance, some single people provide financial support for aging parents or a sibling with special needs. Others may be carrying significant debt that they wouldn't want to pass on to family members who survive them. Insurability is another reason to consider life insurance when you're single. If you're young, healthy, and have a good family health history, your insurability is at its peak and you'll be rewarded with the best rates on life insurance.

Contact your Chester, NJ independent insurance agent, The Insurance Outfit, to find out more.