Life Insurance in New Jersey
Life insurance replaces your income and pays your family’s obligations if you die: the mortgage, tuition, and the years of support your family is counting on. Stonebrook helps New Jersey families and business owners choose the right type and amount, and compare carriers.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What is the difference between term and permanent life insurance?
Term covers you for a set number of years at a lower cost. Permanent covers you for life and builds cash value, at a higher cost.
How much life insurance do I need?
Enough to replace your income for the years your family depends on it, plus your mortgage, debts and tuition, minus savings and existing coverage.
Is life insurance through work enough?
Usually not. Group coverage is often one or two times salary and typically ends when you leave the job.
Can life insurance help with estate taxes?
Yes. Permanent coverage, often owned by a trust your estate attorney sets up, is commonly used to provide cash for estate taxes and equalize inheritances.
Types of life insurance.
Term life
Coverage for 10, 20 or 30 years. The most coverage for the least money, and the right fit for most young families.
Whole life
Permanent coverage with level premiums and guaranteed cash value growth.
Universal life
Permanent coverage with more flexible premiums. Some versions guarantee the death benefit for life.
Survivorship (second-to-die)
Covers two people and pays after the second death. Often used in estate planning.
Business coverage
Key person coverage and policies that fund a buy-sell agreement between business partners.
Conversion options
Many term policies can be converted to permanent coverage later without a new medical exam. Ask about it up front.
How much life insurance do you need?
Start with the income your family would need to replace, and for how many years. Add the mortgage, other debts and the education you want to fund.
For larger families, tuition can be one of the biggest numbers on the list, for many children over many years. Include it.
Subtract the savings and existing life insurance that would be available. What is left is a reasonable starting point for coverage.
Life insurance needs estimate
A simple estimate that doesn’t account for inflation, investment returns, taxes or Social Security. Not a quote or financial advice.
Talk it through with usLife insurance for estate and business planning.
For high-net-worth families, life insurance is often part of the estate plan: providing cash to pay estate taxes without selling a business or real estate, or equalizing what each child inherits.
These policies are commonly owned by an irrevocable life insurance trust (ILIT) that your estate attorney drafts. We work alongside your attorney and accountant on the coverage, and they handle the legal and tax structure.
Business owners use life insurance to protect against the loss of a key person and to fund buy-sell agreements, so partners can buy out a deceased owner’s share. Stonebrook also insures the business itself; see our services.
Stonebrook does not give legal or tax advice. Talk with your attorney and accountant about how a policy fits your plan.
Stonebrook is an independent insurance agency.
We don’t work for one insurance company. We work with more than 25 carriers, so we can compare life insurance across carriers instead of selling you a single company’s policy.
Since 1982 we have helped New Jersey families from our office in Lakewood, and we place coverage in all 50 states through our carriers and partners. When something changes, or when you have a claim, you call people who know you.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Life insurance questions, answered.
What is the difference between term and permanent life insurance?
Term life covers you for a set period, such as 20 years, and costs much less per dollar of coverage. Permanent life, such as whole or universal life, covers you for your whole life and can build cash value, but costs more.
How much life insurance do I need?
A practical starting point is your income multiplied by the years your family depends on it, plus your mortgage, debts and tuition, minus savings and existing coverage. The estimator on this page walks through it.
Is life insurance through my employer enough?
Usually not. Group life is often one or two times salary, may not be enough for a family, and typically ends or becomes expensive when you leave the job. Individual coverage stays with you.
How long should my term life policy be?
Long enough to cover the years your family relies on your income, often until the youngest child is through school and the mortgage is paid. Many families choose 20 or 30 years.
Do I need a medical exam for life insurance?
Not always. Some carriers offer coverage without a medical exam for healthy applicants up to certain amounts. Larger policies usually require an exam and medical records.
Can life insurance be used to pay estate taxes?
Yes. Permanent life insurance, often owned by an irrevocable life insurance trust, is commonly used to provide cash for estate taxes. Work with your estate attorney on the structure.
Should both spouses have life insurance?
Usually yes. A spouse who stays home provides childcare and household work that would cost a lot to replace, and a spouse with income needs coverage for it.
Can Stonebrook compare life insurance carriers?
Yes. As an independent agency, we compare life insurance from multiple carriers, and we can coordinate it with your home, auto and umbrella coverage.
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