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Final expense · NJ

Final expense insurance in New Jersey

New Jersey offers some of the stronger protections for life insurance buyers. If an insurer fails, the New Jersey Life & Health Insurance Guaranty Association protects up to $500,000 in death benefits and $100,000 in cash surrender value per insured life. State law also gives you at least 10 days after receiving a new policy to cancel it for a refund, or 30 days when it replaces existing coverage. The Department of Banking and Insurance takes consumer questions and complaints, and funeral homes are licensed by the State Board of Mortuary Science. For eligible low-income residents, county or municipal social services agencies may help cover funeral and burial costs.

Facts checked against the sources listed below.

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Guaranty protection

$500,000

Death benefit protected per life if an insurer fails

Cash value protected

$100,000

Per life, by the guaranty association

Free-look period

10 days

To return a new policy for a refund

Cremation rate

55.5%

Share of deaths, 2024

What a funeral costs in New Jersey

NFDA doesn't publish funeral prices by state. Nationally, the median cost of a funeral with viewing and burial was $8,300 in 2023, and $6,280 for a funeral with viewing and cremation. Cemetery costs such as a plot, vault, and headstone are extra, and prices vary widely between funeral homes.

In New Jersey, about 55.5% of deaths resulted in cremation as of 2024. Source: New Jersey Department of Health, NJSHAD Mortality Data query (Death Certificate Database, NJ resident deaths) by method of disposition, 2024 (computed: 41,629 cremations ÷ 74,978 deaths)

Federal law (the FTC Funeral Rule) requires funeral homes to give you an itemized price list, so you can compare. Estimate your own total with our funeral cost calculator.

Consumer protections in New Jersey

If a life insurer licensed in New Jersey becomes insolvent, the New Jersey Life & Health Insurance Guaranty Association covers up to $500,000 in death benefits and $100,000 in cash value per insured life. Source: New Jersey Life & Health Insurance Guaranty Association — Frequently Asked Questions

You have 10 days after receiving a new individual life insurance policy to review it and return it for a refund (30 days for replacement policies (N.J.A.C. 11:4-2.4)). Source: N.J.S.A. 17B:25-2.1 — Cancellation of policy within 10 days after receipt

Questions or complaints about an insurer or agent go to the New Jersey Department of Banking and Insurance (800-446-7467). Funeral homes are licensed by the New Jersey State Board of Mortuary Science.

See what you qualify for in New Jersey

A licensed agent can compare final expense options for you. Free, with no obligation.

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Help paying for a funeral

New Jersey's county or municipal social services agencies may help pay funeral and burial expenses for Work First New Jersey recipients, SSI recipients, and certain others; the payment supplements the family's own resources rather than being automatic. Source: N.J.A.C. 10:90-8.1 — Funeral and burial expenses (Work First New Jersey)

Veterans may qualify for VA burial allowances and a free burial in a national or state veterans cemetery — see benefits for New Jersey veterans. A small final expense policy is one way families make sure the rest is covered; learn how final expense insurance works and how guaranteed issue waiting periods work.

Frequently asked questions

What happens to my life insurance in New Jersey if the insurance company fails?

The New Jersey Life & Health Insurance Guaranty Association protects New Jersey policyholders if a licensed insurer becomes insolvent, up to $500,000 in life insurance death benefits and $100,000 in cash value per insured life under state law. Coverage above those limits isn't protected.

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How long do I have to cancel a new life insurance policy in New Jersey?

New Jersey gives you a free-look period of 10 days to review a new individual life insurance policy and return it for a refund. 30 days for replacement policies (N.J.A.C. 11:4-2.4). Check your policy for the exact terms.

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How common is cremation in New Jersey?

About 55.5% of deaths in New Jersey resulted in cremation as of 2024, according to New Jersey Department of Health, NJSHAD Mortality Data query (Death Certificate Database, NJ resident deaths) by method of disposition, 2024 (computed: 41,629 cremations ÷ 74,978 deaths).

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Who regulates life insurance in New Jersey?

The New Jersey Department of Banking and Insurance licenses insurers and agents and handles consumer complaints; its consumer line is 800-446-7467. Funeral homes are licensed by the New Jersey State Board of Mortuary Science.

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Sources

  1. New Jersey Life & Health Insurance Guaranty Association — Frequently Asked Questions
  2. N.J.S.A. 17B:25-2.1 — Cancellation of policy within 10 days after receipt
  3. New Jersey Department of Health, NJSHAD Mortality Data query (Death Certificate Database, NJ resident deaths) by method of disposition, 2024 (computed: 41,629 cremations ÷ 74,978 deaths)
  4. National Funeral Directors Association — statistics
  5. N.J.A.C. 10:90-8.1 — Funeral and burial expenses (Work First New Jersey)
  6. New Jersey Department of Banking and Insurance

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