When most people think about life insurance, they think about protecting their loved ones financially in the event of their death. But what about the actual costs of burial and funeral expenses? These can quickly add up to thousands of dollars – money your loved ones may not have readily available.
It is where burial insurance comes in. Burial insurance is a type of life insurance that pays out a death benefit to your beneficiaries to cover the costs of your funeral and burial expenses.
The best way to find the most affordable burial insurance policy in New Jersey is to compare rates from multiple companies. Funeral consumers can use the state’s funeral consumer protection program to compare prices and find the best policy for their needs.
Table of contents
- What Is Burial Insurance in New Jersey?
- What Does New Jersey Burial Insurance Cover?
- NJ’s leading causes of death
- New Jersey “Free Look Period”
- What Are Benefits of Burial Insurance in New Jersey
- Unique Features About New Jersey Burial Insurance
- How Much Does Burial Insurance Cost in New Jersey?
- How To Choose The Best Final Expense Policy
What Is Burial Insurance in New Jersey?
Burial Insurance in New Jersey is like any other life insurance policy:
It pays out a death benefit to your beneficiaries upon passing. You can use the death benefit to cover the costs of your funeral and burial expenses and any other final expenses you may have. It can be an essential part of your financial planning. As it can help your loved ones cover the costs of your funeral and burial expenses.
In New Jersey, burial insurance is regulated by the state’s Department of Banking and Insurance. There are a few things to remember when shopping for burial insurance in New Jersey:
- The policy must be clearly labeled as “burial insurance.”
- The policy must have a face value of at least $1,500.
- The policy must be issued by an insurance company licensed to do business in New Jersey.
If you’re considering buying burial insurance in New Jersey, be sure to shop around and compare policies before you make a decision. And remember, burial insurance is not the same as health insurance. It will not cover the costs of your medical care.
What Does New Jersey Burial Insurance Cover?
Burial insurance is a type of life insurance that covers the cost of your funeral. Burial insurance is usually purchased as a rider on your life insurance policy. It will be added to your existing policy, increasing its coverage.
Burial insurance can help pay for the burial costs associated with your death, including:
- The cost of a casket and grave plot
- The cost of memorial services
- Funeral expenses such as flowers, transportation, and other services
- Burial costs are tax-free when you die without leaving a will or trust behind.
However, if you have a will or trust in place, the amount paid out by the plan would be taxable income.
NJ’s leading causes of death
According to the National Center for Health Statistics, New Jersey’s leading causes of death are listed below. These are the most common causes of death in New Jersey and are most likely to be covered by burial insurance.
- Heart Disease
- Alzheimer’s Disease
- Chronic Lower Respiratory Disease
- Kidney Disease
New Jersey “Free Look Period”
The Tennessee Life Insurance Act provides ten days for any purchaser of life insurance to cancel the contract without penalty and receive a full refund. If this is a life insurance purchase, the purchaser has ten days; if it is a replacement policy, the purchaser has 20 days.
Don’t forget: A life insurance policy can still be canceled even after the free look period ends. It is possible to cancel a life insurance policy at any time. There is no time limit on when you can withdraw. No insurer can lock you into a contract for an extended period.
What Are Benefits of Burial Insurance in New Jersey
Burial insurance can be a valuable benefit for your loved ones and is an essential step toward making your final wishes known. The following are some of the reasons why you should consider burial insurance in New Jersey:
Financial protection for loved ones.
If a person dies without a will, without sufficient life insurance, or without enough savings, their family will not be able to pay for the funeral expenses. Burial insurance can provide financial relief for families who have lost someone close to them.
Cover other expenses:
In addition to the costs of a funeral, You can also use burial insurance to cover other expenses related to the death. It also includes transportation and accommodation costs for family members who must travel for the funeral.
Peace of mind for survivors.
Burial insurance can help survivors deal with the loss of a loved one and make arrangements for the future. It may also relieve some financial stress when life is otherwise difficult.
Covering medical expenses.
Burial insurance helps pay for medical expenses such as hospital stays, doctor’s visits, and even funeral costs if necessary. It is especially beneficial when paying off debts such as loans or mortgages since many lenders require applicants to have enough cash on hand to pay these bills if they fall into arrears.
It is tax-free income for the survivors:
Under the federal tax code, the death benefit from a life insurance policy is not considered taxable income to the beneficiaries. It can provide much-needed financial assistance to your loved ones when they are grieving and may be unable to think about financial matters.
Unique Features About New Jersey Burial Insurance
Final expense life insurance is a simple and easy-to-understand policy. It comes with several benefits, which include the following.
- You will never have to increase your monthly payments.
- You are guaranteed to receive this certificate for as long as you live, no matter how old you become.
- You can purchase a cremation policy for as little as $1,000, which makes it the perfect option for people planning on being cremated as they do not require a lot of coverage.
- There is no way to decrease the death benefit under any circumstances.
- It is unbelievably easy for anyone to qualify for a policy even if they suffer from severe health conditions since underwriting is so relaxed.
How Much Does Burial Insurance Cost in New Jersey?
The cost of burial insurance in New Jersey depends on several factors, including age, health, and the death benefit amount you choose. Generally speaking, the younger and healthier you are, your premium will be lower. And the higher the death benefit amount you select, the higher your premium will be.
How To Choose The Best Final Expense Policy
It would help if you kept a few things in mind to keep it relatively short.
- It is more cost-effective to purchase life insurance through an agent than directly from the insurance company. You are not likely to save money by buying now from a carrier. The cost of using an agency or agent is free, and the monthly cost of your insurance is not increased because there is a middleman involved.
- Life insurance companies in the USA are reliable, but you might not have heard of them. They aren’t advertised on a mass scale, so you don’t know them. But that doesn’t mean they aren’t trustworthy or credible. They sell through agencies like us instead of advertising millions of dollars. They also offer competitive pricing and underwriting. You have a good chance of getting the best policy if you choose one of these companies.
- Also, keep these things in mind: To make the best choice, you need to find a cheap policy that protects you as soon as possible and is provided by a responsible insurer. Online articles recommend picking a company solely based on revenue or notoriety should be heeded. Price and coverage are just as important as these factors, but You should not fool yourself.
It would help if you worked with an independent insurance agency representing at least ten insurance companies to get the lowest final expense insurance policy. As a result, they will be able to do comparison shopping on your behalf to find the best insurance company for you.
To sum it up, New Jersey offers a lot of different options when it comes to Burial Insurance. It is essential to remember that the key to finding the best policy for you is working with an independent insurance agency so they can do comparison shopping on your behalf and find the best company for you that offers the coverage you need at a price you can afford.
If you would like more information about finding the best policy for you, please contact us; we would be happy to help you.