New Jersey
Disability Insurance

Everyone deserves the opportunity to protect their quality of life and their future, and with disability insurance, you can. You can think of disability insurance as your financial safety net, giving you an earnings replacement if you cannot earn a paycheck due to illness or injury. We’ve laid out the cost-of-living analysis in New Jersey to show you the average expenses in the state and why disab

How much does it cost to live in New Jersey?

New Jersey has a higher cost of living than the average American state. The Bureau of Economic Analysis found that the cost of goods and services in the state is 15.2 % more than the national average. New Jersey has the fourth-highest overall cost of living when compared to all other states.

Cost of Living Parameters 

Housing & Rent 

On average, New Jersey renters pay $1,295 per month, $406 less than the national average of $1,023. If you want to buy a house in the state, the typical home value is $327,900, which is more than the national median home value of $408,800. 

Here are some stats on New Jersey mortgages: 

  • Homeownership rate: 61.9%
  • Homeowner vacancy rate: 1.0%
  • Rental vacancy rate: 3.1%

Childcare  

In New Jersey, the average cost of child care is $12,988 year or $1,082 per month.

The monthly expense of child care for a 4-year-old is $905, or $10,855.

In terms of the most expensive infant care, New Jersey is placed 15th out of all 50 states plus the District of Columbia.

Here’s a look at the annual childcare costs from infant to college:   

  • Infant: $12,988
  • 4-year-old: $10,855
  • School: $14,651
  • College: $13,633

Utilities 

Apartment utilities refer to the essential services required in a home such as gas, water, electricity, cable, and internet. On average, a New Jersey resident can expect to spend up to $369 per month on apartment utilities. 

Food & Groceries 

A family of four spends, on average, $9,914 on food each year in New Jersey, whereas a single adult spends, on average, $3,433. For comparison, the average yearly food expenditure in the United States is $9,354 for a family of four and $3,240 for an adult.

The average price for eating out would be:

  • A basic meal with a drink at an inexpensive restaurant: $15
  • Fast Food Combo (Big Mac etc.): $10
  • Bottle of Coca-Cola: $2.29
  • Bottle of Water: $1.99 

Grocery shopping in the state would cost as follows:

  • Milk (regular), (1 liter): $1.11
  • Loaf of Fresh White Bread (500g): $ 2.91
  • Rice (1 Kg): $5.10 
  • A dozen of Eggs: $4.25
  • Chicken Fillet (1kg): $15.43 
  • Beef Round (1kg): $15.43 
  • 4 Rolls of toilet paper: $8
  • Hair Shampoo: $7 

Transportation 

Compared to 85.5 % of commuters nationwide, 79.4 % Jersey residents drive to work. The average yearly mileage for drivers in the state is 8,720 miles. The ordinary motorist in the state can anticipate spending $803 on gas alone in a year, taking into consideration average fuel economy and the average cost of gas, which in mid-2020 in New Jersey was $2.23 per gallon on average.

Average Income & Taxes 

The average yearly income of a single adult living in New Jersey is 64,207 and the estimated state income tax is $4,254  

Most Expensive New Jersey Cities to Live in 

These are the 5 most expensive places in New Jersey: 

  • Englewood Cliffs
  • Palisades Park
  • Ridgefield
  • Asbury Park
  • Edgewater

Why is disability insurance important to have in New Jersey?

As shown by the above cost of living study, a steady income is required to live comfortably and worry-free. Whether you work full-time or as a freelancer, getting disability insurance is the first step towards financial stability.  

What would happen if you found yourself unable to earn a paycheck because you were too ill or injured to work? According to a recent survey conducted by the personal financial website Bankrate, more than half of Americans (51%) have less than three months' worth of emergency funds.1  

Medical bills are reported to be the number one cause of U.S. bankruptcies. One study has claimed that 62.1% of bankruptcies were caused by medical issues. Other studies show that over 2 million people are adversely affected by their medical expenses.  

If medical bills start piling up, you’ll no longer be able to support your lifestyle in other areas as well, especially if your income is on hold. You might find yourself unable to pay for utilities and rent, and that eventually could lead to foreclosure. In fact, half of the foreclosures on conventional mortgages in New Jersey are caused by the disability of one of the homeowners. In fact and as per the latest studies, New Jersey has a foreclosure rate of one in every 2,346 homes.

A lot of people still think that the need for disability insurance is not a top priority, thinking that disability rarely happens, and when it does, it’s only caused by serious accidents. But did you know that up to 90% of disability cases recorded are due to illness, not injury? 

With that being said, applying for private disability insurance should be on top of your to-do list because life is unpredictable, but your income shouldn’t be.  

Does New Jersey have state disability insurance?

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Only 5 states in the U.S. require companies to provide their employees with disability insurance coverage that includes benefits for accidents or illnesses sustained outside of the workplace. And New Jersey is one of these states.  

In New Jersey, it’s called Temporary Disability Insurance and it pays financial benefits to New Jersey employees who are unable to work due to a physical or mental health condition or another disability unrelated to their job. The healthcare provider certifies the amount of time you will need to recover from your medical condition, up to a maximum of 26 weeks.

After each calendar quarter, your employer is required to report your wages to the state. When we assess your claim, we look at the earnings recorded for the five completed quarters prior to the week your impairment began. The first four quarters of that time period are referred to as the base year.

To be eligible for Temporary Disability Insurance in 2021, you must have worked 20 weeks and earned at least $220 per week, or a total of $11,000 in those four quarters (the base year) To be eligible for Temporary Disability Insurance in 2022, you must have worked 20 weeks and earned at least $240 per week, or a total of $12,000 in the base year.

How can I easily get supplemental disability insurance coverage in New Jersey?

A supplemental disability insurance coverage is an excellent strategy to safeguard your income and way of life. It helps to compensate for a portion of the 40% gap that most work policies provide. Also, the majority of supplemental disability insurance benefits are tax-free.

Here at Asteya, we offer disability insurance (or disability income insurance as we like to call it) that’s simple, fast, and affordable. Our 100% digital process means we don’t tire you out with proof of income, medical exams, phone interviews, or wait times, which means you go from applicant to insured in no time.  

Signing up for Asteya’s private disability insurance also has many benefits:

  • You are free to spend your benefit payments anyway you see fit.
  • Benefit payments may continue until you retire or recover.
  • You can add disability riders to your policy to increase your coverage.

Who qualifies for disability insurance in New Jersey?

Most insurances are bought to protect homes, vehicles, and health, but our most valuable asset tends to get neglected: our income. 70% of working Americans live paycheck to paycheck, with little savings to buffer the financial burden of a disability that leaves them unable to work.

At Asteya, we offer 2 types of disability income insurance: Permanent Disability Income Insurance and Sickness & Injury Disability Income Insurance. Visit asteya.world for more details on the eligibility of our product offering.

How much does disability insurance in New Jersey cost?

Protecting your income shouldn’t be a luxury, so here at Asteya, we’ve created affordable and easy solutions that won’t drain what you’re trying to protect (your income!). Our prices start as low as:  

 
Permanent Disability Income Insurance: starting at $6.05/month  

Sickness & Injury Disability Income Insurance:
starting at $5/month

The bottom line

On average, living in the state of New Jersey will cost you $2,870 per month give or take – that's a lot of expenses! You've invested a lot of time and hard work in building a life that works for you, and your hard work should not go to waste due to an accident or illness. That’s why you should protect your lifestyle and your income with DI. 

When it comes to New Jersey’s state disability insurance, You may be eligible for Disability During Unemployment (DDU) benefits if you have an illness, injury, pregnancy, or other physical or mental health problem, but you haven't worked recently and/or are receiving unemployment benefits. DDU is a combination of Temporary Disability Insurance and Unemployment Insurance. The benefit amount is computed similarly to TDI, except instead of the maximum of 85 percent allowed by TDI, you will receive 60 percent of your average weekly wage.

If you were unable to work for more than 14 days following your last job for an employer who contributes to the New Jersey TDI program, you may be eligible for DDU benefits. You've already met the earnings requirements for DDU if you've been granted for unemployment or family leave payments. If you haven't, you'll qualify if you've worked for at least 20 weeks and earned at least $240 a week, or if your annual income is at least $12,000.

But when it comes to private insurance, at Asteya, the benefit you get approved for is the benefit you receive, so you can rest assured knowing you’re covered – no surprises

How do I get disability insurance?

Get a quote from Asteya in seconds and go from applicant to insured in minutes