Pre-Planning with Choices
A few fast facts about the New Jersey Prepaid Funeral Trust Fund™ (NJPFTF):
Your account is 100 percent trusted and refundable upon demand, with interest and without penalty, and is transferable to another participating funeral home.*
The NJPFTF is insured by the Federal Deposit Insurance Corporation (FDIC) up to the limits provided by the law.**
The NJPFTF is able to obtain the prevailing rates of jumbo certificates of deposit (CDs) by pooling the accounts of thousands of prepaid agreement owners.†
All NJPFTF prepaid funeral accounts are excludable as resources for SSI/Medicaid purposes for qualified beneficiaries.
The NJPFTF provides an annual tax statement and a summary of your account and interest earned (reportable as income if you are required to file with state and federal tax agencies).
All account balances may be viewed online at www.njsfda.org/myaccount.
There are no age limits and no health questions. This is not insurance.
* By law, accounts established for SSI/Medicaid eligibility purposes are not refundable.
** All funds are deposited in a state or federally chartered bank, with each account insured by the Federal Deposit Insurance Corporation (FDIC) in the name of the purchaser up to $250,000.
† The New Jersey Prepaid Funeral Trust Fund™ receives one percent (1%) of the fund's principal sum for management, administration and overhead costs.
Why Pre-plan and/or Pre-pay?
Many people plan for life events such as weddings and vacations well in advance, but many people do not plan for something that is certain to happen — their funeral. While most people do not want to think about their own mortality, the time to pre-plan your funeral is now.
The primary advantages of pre-arranging your funeral are to relieve the burden on your loved ones at an already emotional time, and to ensure your funeral is carried out according to your wishes. Pre-arranging eliminates the uncertainty among your survivors as to what you would have wanted.
Taking the time now to arrange your funeral is one less responsibility your loved ones will need to worry about once you have passed. Pre-planning and pre-paying your funeral is one of the most thoughtful gifts you can give to your family. There are no service charges by the funeral home for prearrangements, as per New Jersey state law.
Pre-paying your funeral reduces stress and financial burdens on your loved ones after your passing. We can coöordinate a payment plan that suits your needs, from a single payment plan to monthly bank account withdrawals. By pre-paying your funeral you spare your family from second guessing whether they have spent too much or too little for your funeral.
Pre-payment also protects you and your family from inflation by virtue of the interest bearing accounts in which the funds are placed. This acts as a safeguard against inflation. Depending on your region, if your funeral costs less than the amount you have put aside, those funds will be refunded to your beneficiaries.
For more information on what is applicable in your region, simply consult your funeral director. Each year thousands of people decide to pre-plan and pre-pay their funeral. These plans are designed to be flexible and can accommodate the many changes that often occur in people’s lives.
What you can do in advance . . .
- Decide on Burial or Cremation and your casket or urn type, and any other funeral related merchandise.
- Seledt the type of service you desire (religious, military, non-traditional, etc.).
- Select which funeral home you wish to use.
- Designate your pallbearers, pick any music or readings you want at your service.
Benefits of Pre-Planning
- Between seventy and seventy-five decisions, or more, are made within the first twenty-four to forty-eight hours after death. It is difficult to think rationally while making so many decisions within days of losing someone, pre-planning gives yourself, family and friends peace of mind. Pre-planning gives your loved ones direction of your wants and desires.
- It is easy. Anyone can do it, and you can change your mind and the prearrangements at any time.
Benefits of Pre-Paying
Hagan - Chamberlain uses Choices, the New Jersey Pre-Paid Funeral Trust Fund, operated by the New Jersey State Funeral Directors Association, to administer all pre-paid funeral accounts.
New Jersey has progressive model laws which fully protect the consumer of pre-paid funerals.
All monies paid to our funeral home for prearranged funeral services are placed, through Choices, in trust in a Federal Deposit Insurance Corporation (FDIC) insured interest bearing bank account. This protects the consumer because the funeral home cannot access those funds until the time of death, after all funeral services have been rendered.
- Trusted money in revocable accounts are fully or partially refundable, on demand, by the purchaser, with interest and without penalty.