Cheap New Jersey Life Insurance
Reader’s Question:
My life insurance is from my employer in New Jersey. It is participative as we have to pay half of what the company pays. I pay $100 of the $200 premium. When I added my wife into my plan, my premium became $720. Why is my wife’s insurance premium twice higher than myself? Since my wife is pregnant, I cannot insure her with the other insurance plans.
Ed
Clifton, NJ
Hello there, Ed.
Well I should say that’s quite normal for companies in New Jersey that use the 2-tier system, where there are only 2 options for insurance: Individual and Family. So it is like this…you pay a specific amount A if on individual and B if you are covering any dependents, regardless of the number, whether it’s just your wife or with many kids. Your company, I presume, is using a 2-tier system with your group insurance.
There is also one that called 3-tier system. You see, this 3-tier system can be: employee, employee plus one dependent, or family (which means more that one dependent included). There is even a 4-tier system which can either be: employee, employer plus spouse, employee plus one child, family. The premium gap that you just mentioned is not really overboard…it is just about the normal gap for any 2-tier system. Nevertheless, the premium gaps of these three type of tier system is not really that much different at all.
Sine your wife is still pregnant, then you will have to stick to her insurance under your employer since you don’t want to risk her being uninsured until she gets to deliver. And besides, sticking to what insurance you currently have is not really a bad decision for you too.
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