At Dancy Funeral Home, we understand that every family’s circumstances are different. Whether you’re planning ahead or arranging a service after a loss, we offer several secure and flexible ways to handle funeral expenses with confidence and peace of mind.
Our licensed directors will walk you through each option, explain what’s required, and help you choose the solution that best fits your needs and budget.
Families have several trusted ways to cover funeral costs. Whether you prefer to pre-fund arrangements through the NJ Prepaid Funeral Trust Fund, assign proceeds from a life insurance policy, or pay directly at the time of need, each option offers unique benefits and considerations.
Below is a simple overview to help you compare the main choices available.
When it’s set up
In advance, during pre-planning
At the time of death, using an existing life insurance policy
At the time of service
Who manages the funds
New Jersey State Funeral Directors Association (NJSFDA)
Funeral home works with a third-party assignment company to verify and process insurance
Funeral home collects payment directly
How payment is made
Funds are placed in a trust under your name and released to the funeral home when needed
Life insurance proceeds are assigned to the funeral home to cover costs
Family pays by check, credit card, or bank transfer
Flexibility
Fully refundable unless made irrevocable for Medicaid
Based on policy value and verification
Pay in full at time of arrangements
Medicaid eligibility
Irrevocable trusts are not counted as assets for Medicaid
May delay eligibility if not properly assigned
May need to “spend down” other assets first
Earnings / interest
Earns interest to help offset inflation
None (value fixed by policy)
None
Security
Funds held in trust, not by the funeral home; invested in U.S. government-backed instruments
Dependent on life insurance company’s approval and timeliness
Immediate payment only
Transferability
Transferable to any funeral home in or out of state
Dependent on insurance company
N/A
Best for
Individuals planning ahead, or applying for Medicaid/SSI
Families using life insurance proceeds to pay expenses
Immediate-need situations without advance planning
Key advantage
Protects your wishes and prices in advance; easy and secure
Allows family to use life insurance instead of out-of-pocket funds
Simple and straightforward
Potential drawback
Requires advance funding
Can take weeks for insurance processing
May cause financial stress during an already difficult time
In addition to the main options above, families may also consider:
As a family-owned, independent funeral home, we believe in transparency and trust at every step. We’ll help you understand each payment method clearly — no surprises, no pressure — so you can make the best choice for your family.
We handle all documentation and coordination with the New Jersey Prepaid Funeral Trust, insurance providers, and assistance programs on your behalf.
Select an option below to explore the details of each payment method:
If you’re unsure where to begin, our licensed funeral directors can review your options and answer any questions — confidentially and at no cost.
Dancy Funeral Home
9 Smull Avenue, Caldwell, NJ
At Dancy Funeral Home, planning ahead is more than paperwork—it’s an act of love for the people you care about most.
