1. 3998 POINTS
    Matt Benore
    Founder, DenverWest Insurance Professionals, Inc.,
    Yes, you can use Life Insurance to pay for a funeral.  In fact, if you are working with a funeral home, they will help with that process.  Life Insurance Death Benefits are there to relieve financial stress especially following the immediate death of a loved one.

    Life Insurance was first created for this particular reason.  It was and still is called Final Expense, designed to cover the funeral expenses and other costs associated with and during the grieving process.  Now, you can use Life Insurance Benefits to maintain a standard of living, help supplement income, etc.
    Answered on May 5, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Life insurance proceeds are spent at the direction of the beneficiary.  Frequently the beneficiary uses the proceeds of a life insurance policy to pay final expenses including funeral expenses.  Some policies are arranged in such a way as to insure that the proceeds pay funeral costs.  These policies are marketed through various funeral homes.  However, if the beneficiary is a natural person and doesn’t want to use the proceeds for a funeral, that is entirely their decision.
    Answered on May 5, 2014
  3. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    YES. Absolutely. There is, in fact, Final Expense Life Insurance, for just such a cause. It typically is a low amount life insurance policy, of say $10,000 - $20,000. However, most folks buy life insurance in larger amounts, so their family and friends can get some funds to help them go on with their own lives, and not just to pay for the deceased person's funeral. Your call, after a conversation with a life insurance expert. Thank you. GARY LANE
    Answered on May 6, 2014
  4. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    Great question! Yes, in fact, in many parts of the country, life insurance was marketed as "burial insurance", and in some circles, still is. Many people do not have the money to invest in large life insurance policies, yet want to protect their family from the expenses of their passing. It is very common, and affordable, to buy a policy that is large enough to provide for a funeral, and leave a little behind for the family. If you would like help finding a policy like that, please feel free to contact me, I'd be happy to help. Thanks for asking!
    Answered on May 6, 2014
  5. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    I have been a Certified Preplanning Consultant and preplanned over $1,000,000 of funerals through a local funeral home, with many of them funding their funerals at the same time. It gave me a deep appreciation and understanding for what is needed, and the creative ways that people pay for, their final expense needs.

    I have come to believe that purchasing a life insurance policy on your own is an excellent way to pay funeral costs. You can assign the policy to the funeral home, if you wish, with a stipulation that the remainder of the death benefit go to your beneficiaries. This is even allowable in a Medicaid spend down. To ensure that your funeral costs do not exceed that amount, you may pick out the items for your funeral or memorial service, and sign a contract for the cost (the funeral home will probably want to add a modest increase each year, so your policy will need to be  little larger than the cost of the funeral you have chosen).

    Or you may leave the proceeds to a family member who you trust to pay for the type of services you desire. Again, the excess death benefit can go to pay for other costs associated with your passing, or to your beneficiary's personal needs.

    When my father died last year, our funeral director went so far as to submit the death claim for us. Dad's having personal life insurance for that purpose was a huge blessing to our family. I highly recommend it.
    Answered on May 6, 2014
  6. 11498 POINTS
    Jason Goldenzweig
    Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
    Yes. This is one of the most common reasons why people buy life insurance. In fact, there's a specific category of insurance referred to as burial insurance / final expense insurance. These are typically low face amount figures (generally $25,000 or less) and are whole life policies.

    Most people buy larger face amounts to cover a range of expenses (e.g. pay off the mortgage for their house, loans, etc.), use it for estate planning purposes, and to leave a legacy behind to their loved ones.

    Please note, the proceeds that are paid out from a life insurance policy belong to the beneficiary and they can use the monies however they choose.
    Answered on May 7, 2014
  7. 5527 POINTS
    Marlin McKelvy
    President, Consumer Directed Benefit Solutions, Memphis, Tennessee
    Yes. Paying for funeral expenses was one of the primary reasons for the invention of life insurance, right after providing some degree of financial security for the family and/or loved ones the insured leaves behind.  Funeral homes have a high degree of expertise in working with life insurance companies to coordinate the payment for their services with the life insurance carrier.  While this can be of great comfort to bereaved family members at the time of loss of a loved one, a person should exercise caution in these situations.  Funeral homes after all are a business and they are in business to make a profit.  Most funeral homes are honorable and reputable but as with any industry there are those who operate on the margins to put it politely.  Giving them the keys to the kingdom when a person is emotionally distressed is often unwise and can leave a person vulnerable to lots of "upselling" and excessive expenses.  It is always wise to attempt to make plans for funeral arrangements well in advance of the actual need.
    Answered on May 7, 2014
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