After his discharge, Jensen worked for a short time as a barman in Truro, then as a marine store dealer in Adelaide. He married Katy Herman ( Arthur), a divorcée, at the Adelaide Registry Office on 13 July 1921. Their marriage was heavily affected by his wartime experiences. In April 1922, a photograph of Jensen and his horse-drawn cart, with "J. C. Jensen V.C." painted on the side, was published on the front page of "The Sunday Times" newspaper in Sydney; the caption noted that he employed several men in his business. On 28 May, Jensen was admitted to the Adelaide Hospital, and died of congestion of the lungs three days later, aged 31. He had never fully recovered from the wounds he had received during the war.