Key Takeaways
- New Jersey requires a 10-day free look period for disability insurance policies
- New Jersey Temporary Disability Insurance (TDI) is mandatory for most employees
- New Jersey Family Leave Insurance (FLI) provides paid leave for family care
- New Jersey Long-Term Care Partnership Program provides Medicaid asset protection
- LTC policies must offer inflation protection options and nonforfeiture benefits
New Jersey Disability and Long-Term Care Insurance
New Jersey has specific regulations for disability income insurance and long-term care insurance, including mandatory state disability programs.
Disability Income Insurance
Free Look Period
New Jersey requires a 10-day free look period for individual disability insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- Applies to individual policies
Required Policy Provisions
New Jersey disability policies must include:
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for annual premium |
| Reinstatement | Must allow reinstatement within 3 years |
| Notice of Claim | 20 days after loss begins |
| Time to Pay Claims | 30 days after proof of loss |
| Legal Actions | No earlier than 60 days after proof of loss |
New Jersey Temporary Disability Insurance (TDI)
New Jersey has a mandatory state disability program:
Coverage
| Feature | Detail |
|---|---|
| Who's Covered | Most New Jersey employees |
| Funding | Employee and employer contributions |
| Benefit Amount | 85% of average weekly wage (up to max) |
| Duration | Up to 26 weeks |
| Waiting Period | 7 days |
Eligibility
To be eligible for TDI benefits:
- Must have worked 20 weeks or earned $12,000+ in base year
- Cannot work due to non-work-related illness or injury
- Must file claim within 30 days of disability
Exam Tip: New Jersey TDI provides up to 26 weeks of benefits at 85% of average weekly wage. This is a mandatory program for most employees.
New Jersey Family Leave Insurance (FLI)
New Jersey Family Leave Insurance provides paid leave for family care:
Coverage
| Feature | Detail |
|---|---|
| Who's Covered | Most New Jersey employees |
| Benefit Amount | 85% of average weekly wage (up to max) |
| Duration | Up to 12 weeks in 12-month period |
| Purposes | Bond with new child, care for family member |
Qualifying Reasons
- Bond with newborn, adopted, or foster child
- Care for seriously ill family member
- Address domestic violence issues
- Care for family member's military deployment
Long-Term Care Insurance
New Jersey has comprehensive LTC insurance regulations:
Free Look Period
- 30-day free look for LTC policies
- Applies to all individual LTC policies
- Policyholder can return for full refund
Required Provisions
| Provision | Requirement |
|---|---|
| Renewability | Must be guaranteed renewable |
| Pre-existing Conditions | Max 6-month look-back |
| Elimination Period | Must disclose clearly |
| Inflation Protection | Must offer option |
| Nonforfeiture | Must offer option |
Inflation Protection Options
Insurers must offer at least one inflation protection option:
- Compound inflation (3% or 5%)
- Simple inflation
- Consumer Price Index adjustment
- Benefit increase option
New Jersey Partnership Program
New Jersey participates in the Long-Term Care Partnership Program:
How It Works
- Purchase a Partnership-qualified LTC policy
- Use benefits for care
- If benefits exhaust, apply for Medicaid
- Asset protection - Keep assets equal to benefits received
Producer Requirements
To sell LTC insurance in New Jersey:
- Complete 8 hours of LTC-specific training
- Complete training before selling
- Ongoing CE requirements for LTC
How long can New Jersey Temporary Disability Insurance (TDI) benefits be paid?
What is the primary benefit of purchasing a New Jersey Partnership-qualified long-term care policy?
How long is the free look period for long-term care insurance in New Jersey?