New Jersey Mortuary Science Practice Exam

What is the key feature of a newly issued funeral insurance policy?

1. It is specifically designed for funding funeral expenses

2. It must be accompanied by a will

3. It is available only through certain providers

4. It has a waiting period before use

The correct answer is: It is specifically designed for funding funeral expenses

A newly issued funeral insurance policy is primarily characterized by its specific design for funding funeral expenses. This type of insurance provides financial support to cover the costs associated with a funeral, such as burial or cremation fees, service charges, and other related expenses. The intention behind this policy is to alleviate the financial burden on families during a difficult time, ensuring that they have the necessary funds readily available. The other options do not define the core feature of a funeral insurance policy. While having a will can be important for overall estate planning, it is not a requirement for obtaining or effectively using funeral insurance. Additionally, funeral insurance policies can often be acquired from various insurance providers and are not restricted to only a select few. Lastly, while some insurance policies may have waiting periods, this is not a defining characteristic of funeral insurance and varies between different insurance products. Overall, the primary characteristic that sets funeral insurance policies apart is their focused purpose of funding funeral-related expenses.