How To Become An Insurance Agent In New Jersey
: Ethan Peyton
Getting your New Jersey insurance license is the first step to becoming an insurance agent in New Jersey. Whether youre interested in selling property and casualty insurance, life insurance, health insurance, or any combination of those lines of authority, this article has the information you need to get started.
The New Jersey Department of Insurance has a 6-step process to getting your insurance license. Well walk you through step-by-step from the license application to insurance test prep, to the New Jersey insurance exam, and beyond.
This guide has everything you need to know to get your New Jersey insurance license quickly and easily.
Custom Whole Life Insurance
New York Life’s custom whole life insurance is similar to a standard policy, with the difference that you can choose the length of time over which to pay premiums. Instead of level premiums until age 100 or your death, you can choose the number of years you pay. The minimum is five years, and you cannot pay after age 75. So if you’re 40, you could choose to pay for custom whole life insurance for a period between five and 35 years. Premiums are the same amount each year, and coverage is permanent once the policy is paid.
You might choose custom whole life insurance if you’re currently making a comfortable income and want to lock in permanent coverage that you won’t have to pay for in retirement. It also allows you to fund the policy’s cash value faster, meaning it grows more quickly as interest is applied to a larger sum over time.
Custom whole life insurance is available from NYL up to age 70, and policies have a minimum face value of $50,000. They come with a premium deposit account option, in which you can deposit up to nine premiums’ worth of money into an account. The insurer pays interest on the money, and it’s used to pay your premiums over time, essentially earning you a discount. The premium deposit account option is available in all states, but you’ll need to add it as a rider if you live in:
Best For No Waiting Period: Lincoln Financial Group
Lincoln Financial Group
Must contact agent for pricing details
Need to wait six years for return of premium
In business since 1905, Lincoln Financial Group has earned an A+ rating from AM Best. The company rises above the competition and is best in our review for no-waiting period plans. These are its MoneyGuard II 2020 and MoneyGuard III policies, both of which offer zero-day elimination periods for accessing coverage for nursing homes and assisted living facilities. Other companies on this list generally require a minimum of 90 days before granting coverage for such services.
With MoneyGuard II 2020, a universal life insurance plan with an optional long-term care benefit rider, premiums are locked in from the start. Customers can get tax-free reimbursements for qualifying LTC costs, and there’s no waiting period.
Some of the key features of the company’s other no-elimination-period plan, MoneyGuard III, include no medical exams or lab tests required for underwriting, a couple’s discount, choice of a range of inflation protection options, and a death benefit ranging from $50,000 to $500,000. The company’s terminal illness rider allows for a one-time claim of 25% to 75% of the death benefit up to $250,000 in the event of a terminally life-threatening condition.
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Best Overall: New York Life
New York Life
- No. of Policy Types: 2
- Coverage Limit: Up to $400/day
- Price: Contact agent
New York Life offers a choice of plans, flexibility of care, high daily coverage limits, and a money-back guarantee.
Plans offer protection against inflation
LTC and combination LTC and life insurance policies
Must work with an agent to get pricing
Waiting periods on all policies
Founded in 1845, New York Life is one of the top-rated long-term care insurance providers in terms of overall financial strength. It has received the highest ratings for financial strength by the top rating services, including an A++ from AM Best. It wins our nod for overall best due to this strength and an innovative long-term care and life insurance policy.
Named one of the best life insurance companies of 2021 by our team at Investopedia, New York Life offers two types of long-term care insurance. Its combination long-term care insurance plan offersas the name suggestsa combination of long-term care or a larger life insurance benefit. Long-term care coverage is offered for the expenses related to a range of choices, including care from a facility, care at home, or care from a family member.
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Meanwhile, Cigna is focusing on its health offerings to consumers, employers and those insured by Medicaid and Medicare. Cigna is in a race with rival health insurance companies like UnitedHealth Group, Anthem, Humana and CVS Healths Aetna health insurance business to grow its business administering health benefits for seniors as more flock to Medicare Advantage plans.
For its battles ahead, Cigna will need cash from the New York Life divestiture as it competes with rivals into the business of providing healthcare services.
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New York Life Insurance Company
|1845 176 years ago|
|Ted Mathas, Chairman and CEO|
New York Life Insurance Company is the third-largest life insurance company in the United States, the largest mutual life insurance company in the United States and is ranked #71 on the 2019 Fortune 500 list of the largest United States corporations by total revenue. NYLIC has about $593 billion in total assets under management, and more than $25 billion in surplus and AVR. In 2007, NYLIC achieved the best possible ratings by the four independent rating companies . Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
New York Life Insurance Review 2021
New York Life Insurance
- Rated 4.5 stars out of 5 by NerdWallet.
- Ranks high in J.D. Powers 2020 customer satisfaction study for life insurance.
- Doesnt offer life insurance quotes online.
New York Life bills itself as one of the nations oldest mutual life insurance companies. As a mutual insurer, New York Life is owned by its policyholders. Customers who buy certain products, such as whole life insurance, are entitled to vote in board elections and receive annual dividends.
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Nyl Custom Universal Life Guarantee
If you’d like permanent life insurance but aren’t interested in a cash value policy, New York Life offers a guaranteed universal life insurance policy called custom universal life guarantee. These policies are ideal if you want to ensure a death benefit is paid but don’t want to pay higher premiums for an investment component that you don’t intend to use.
Custom universal life guarantee is similar to NY Life’s value whole life policy in that cash value is accumulated at a lower rate than a standard whole life policy, with just a 2.5% guaranteed interest crediting rate. Coverage extends until you reach a specified age, as high as 121, and rates are significantly lower than for a whole life policy.
Custom universal life guarantee policies are available between the ages of 18 and 90, and the minimum face value is $100,000. The period over which you pay premiums is flexible, similar to the custom whole life policy, and premiums are level over the life of the policy. These are available for an individual, or you can purchase a survivorship policy with your spouse.
New York Life Reviews And Ratings
The New York Life Insurance Company was founded in 1845 and has a long history as a financially stable insurer. In fact, A.M. Best has consistently given New York Life a financial strength rating of Superior , which is the best life insurance rating available.
The company has its own customer service team, but New York Life primarily sells policies and handles customer interactions through its agents. While the company receives average reviews overall for customer satisfactionâtheir J.D. Power rating is 3 out of 5âindividual policyholders have a range of experiences.
Some customers indicate that the company’s agents are good at answering their questions and offering advice without pressuring them into a sale. But others feel scammed or ripped off after receiving misleading information, or they have difficulty canceling their policies.
New York Life is a legitimate company with a large number of agents, so if you’re considering purchasing life insurance with them, we recommend speaking to a few agents to find one with which you’re confident. Particularly if you’re shopping for a permanent life insurance policy, like whole life insurance, it’s important to trust that your representative will offer advice and be there if your family needs assistance.
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A Brief New York Life Whole Life Insurance Review
New York Life is one of the most well-known insurers in the United States. The company offers a range of insurance products. These products include term, whole, variable and universal coverage.
There are a few reasons why you may want to consider a New York Life insurance policy. First, your surviving spouse can use your policy to access life insurance without a medical exam with New York Life insurance.
Also, the insurer offers accelerated death benefits. In addition, for example, the company offers disability and living benefits.
In addition, New York Life insurance is flexible. You can convert many of their term policies into permanent, whole coverage.
If the idea of earning passive income appeals to your interest, thats another excellent reason to consider New York Life. The company shares its success with policyholders. In fact, it has a strong history of paying regular dividends.
Furthermore, New York Life receives top ranks. The company has earned an award as one of the best term life insurance companies.
It has also received accolades as one of the best whole life insurance companies. Overall, New York Life is a solid pick for meeting your life insurance needs.
Before diving into a New York Life insurance review, it helps to understand the insurers offerings.
Standard Whole Life Insurance
New York Life’s standard whole life insurance policy is available from birth to age 90, but the minimum policy death benefit varies.
- $50,000 if you’re under 18
- $25,000 if you’re over 18
- $100,000 if you’re over 18 and in a Preferred risk class
With a standard whole life policy, premiums are level and paid until you reach age 100, at which time you no longer have to pay premiums, but coverage remains in force. The policy’s cash value increases over time as a portion of your premiums go into it, and it grows at a guaranteed interest rate. The interest rate on guaranteed cash value is 4%. You can borrow against the policy’s cash value by taking out a policy loan, which is charged interest at a rate NYL determines quarterly.
Whole life insurance policies qualify for dividends from New York Life, although they aren’t guaranteed. You can receive these dividends in several ways:
- Receive as a check.
- Use to pay a portion or all of your premiums.
- Leave on deposit with New York Life to earn interest.
- Use to purchase paid-up additions from New York Life. Paid-up additions allow you to increase the size of your policy’s death benefit without increasing your premiums by essentially paying for the additional coverage all at once.
Whole life insurance policies come with a variety of riders, which are essentially add-ons to your coverage that offer additional benefits.
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New York Life Insurance Health Ratings
Underwriters assign risk classes that determine the price of your life insurance policy. The following are health ratings for New York Life policies, listed from best to worst:
Select preferred Juvenile Non-smoker standard special classes
The insurer will select a class based on your background, health and lifestyle. Your classification will affect your premium as well as the minimum benefit payout.
Financial Strength: Highest Ranking A++
New York Life Insurance Company has a financial strength rating of A++ Superior by A.M. Best the highest possible rating. They are cited as having a conservative product portfolio and being a top leader in the U.S. Market Life Insurance industry. The company is a leader in the Million Dollar Round Table with continuous membership since 1956. MDRT is recognized as a standard of excellence in the life insurance and financial services industry.
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New York Insurance Pre
After youve determined which licenses you need, you must now take your New York insurance pre-license education courses.
Most folks choose to take their insurance pre-license course online. These courses are created specifically to give you the skills you need to pass the test. The types of licenses you choose will determine which courses you take.
Each line of authority in New York varies in required pre-license education hours. This means that if you wish to get a Property and Casualty license, you must take ninety hours of pre-licensing, and for Life, Accident, and Health you must also take forty hours.
You will receive a certificate upon completion of the course. Keep this certificate, as you will need it when taking your exam.
For required insurance pre-license courses and exam prep, StateRequirement recommends:Kaplan Education Company
Requesting A Policy Change
Thinking about making a change? Your State Farm agent would be happy to assist you. But you can also initiate a change yourself.
Pick from two simple options if you need to file a health insurance claim.
- Take your bill to your State Farm agent’s office.
- Call our Health Response Center at 866-855-1212 to request a claim form.
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Companies Like New York Life
Lets take a look at some insurance agencies and companies similar to New York Life in case youre interested in doing a comparison.
Symmetry Financial Group is an insurance marketing organization based out of Swannanoa, North Carolina.
SFG specializes in several life insurance markets, primarily the mortgage protection insurance market. The company also offers final expense insurance, a type of whole life insurance designed to cover medical bills and funeral expenses after the policyholders passing.
Bankers Life was established in 1879 in Chicago, Illinois. The company is a subsidiary of CNO Financial Group.
Bankers Life offers life insurance, long-term care, annuities, Medicare , critical illness insurance, as well as vision and dental plans. It targets the senior market, typically people age 60 and older who are near retirement.
People Helping People
People Helping People was established in 2009 in Northridge, California. The company serves the middle markets for insurance-based financial planning. It focuses on term insurance, index universal life insurance, and fixed indexed annuities.
American Income Life
American Income Life, a wholly owned subsidiary of Globe Life Insurance, is a major provider of supplemental life insurance. The company was founded in 1951 and is headquartered in Waco, Texas.
Equis is a marketing organization for independent insurance agents and agency builders.
Freedom Equity Group
Complete An Insurance Prelicensing Course
New York requires those seeking an insurance license to complete prelicensing before taking the state licensing exam. Prelicensing courses with Kaplan give you the best chance to passour pass rates are among the highest in the industry.
Prelicensing Education Hour Requirements
- Life, Accident & Health: 40 Hours .
- Life : 20 Hours .
- Accident & Health : 20 Hours .
- Property & Casualty: 96 Hours .
- Personal Lines: 43 Hours .
Acceptable Methods of Education
Live Class Requirements
- Pre-Class Study : 10 hours , 20 hours
- In-Class Exam: In New York, an in-class graded exam is given in the Life & Health class to test your readiness for the state exam. The test must be passed with a 70% or greater in order to receive a certificate of completion. You must pass the final exam in one sitting in a 90-minute time limit.
Online Course Requirements
- Forced Progression: This requires the user to successfully complete each page of the online course before being allowed to proceed to the next.
- Effective 11/3/2020, the New York Department Of Insurance has permanently eliminated the requirement for an end of course exam proctor/monitor. Students will however still be required to complete the end of course exam.
Prelicensing Education Exemptions
Candidates with the following designations or certifications are exempt from prelicensing education requirements and Part 1 of the exam. In order to be licensed:
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New York Life Insurance Review
David DufordDisclaimer: We are not in any way affiliated with New York Life. In fact, we are a direct competitor of theirs. This article is our personal review of their agent sales career opportunity and our personal opinions of the company. If you are looking to contact New York Life directly, call them at 1-800-225-5695.
If so, you probably have questions about products youd sell, how much money you could make, and what the pros and cons are of a New York Life insurance agent career.
If so, youve found the right article!
Im going to detail what selling life insurance with New York Life is really like for people interested in becoming an agent.
My goal is to give you a fair and balanced overview, so you can determine if a career with NYL is right for you.
PS: Check out my other articles on insurance sales jobs for information about other organizations you could possibly join.
NOTE: Are you an aspiring or new insurance agent looking for more insight on how the insurance sales industry works? Check out my free New Insurance Agent Resource Guide to help answer many of your questions .