1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Yes, life insurance is a very good way to cover funeral costs. You must have a policy that is in effect at the time of death, and since none of us knows when that will be, it is best to buy permanent insurance vs term insurance. There are companies that sell small "final expense" policies, or you can even use a larger policy; the remainder of the death benefit that does not go toward funeral costs can go to other people or expenses.
    Answered on December 9, 2013
  2. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    Absolutely! Some folks who for whatever the reason do not want life insurance, still buy a very small basic policy, just to cover their final funeral expenses. Of course, life insurance can do so much more. It can even fund college, help buy a home, or pay for retirement or a pension. Just ask by calling, Gary Lane, Agent, New York Life, 949 797 2424. Thanks.
    Answered on December 9, 2013
  3. 65 POINTS
    Victoria Reed
    Family Service Professional, Advance Planning Specialist, Dignity Memoiral Mills & Mills Funeral Home and Memorial Park, Tumwater, WA
    Absolutley! But think of FUneral Life Insrance for this Part. Life insurnace is ment to be used for the loved ones left behind, But what alot of people dont know you can pre-arrange your funeral and lock in todays prices with low monthly payments with a Fuenral life insarance and keep the other life insurance for your loved ones.  This way you have purchases your funeral arrangements and your family wont have to guess what you want and when the time comes its less stress on the family and the Fuenral Home has all the information that is need. Victoria Reed, Mills & Mills Funeral Home and Memorial Park Tumwater, WA 360-791-0403. Thanks
    Answered on December 10, 2013
  4. 0 POINTS
    Allen Mitchell
    The key word in this question is "cover".  All life insurance can be used toward that purpose if the beneficiary chooses to use it that way.  Policies can be made with a Funeral Home as the beneficiary but only one kind of policy will answer the question of "will it cover".  When I first entered the insurance profession in 1957 we sold a $1,000 or $2,000 ordinary (permanent, whole) life policy for a person wanting funeral expense coverage.  As I increased my knowledge in the insurance industry I went to including a "Final Expense" amount in the practice of total planning of a persons insurance needs.  At that time we figured $10,000 sufficient to meet the needs of final hospital expenses, taxes, burial, etc.  It was not until I was Executive Vice President of a company that was sold to a company that wrote burial insurance policies through the funeral home.  I became licensed with the new company and learned, at a much older age, that there is only one policy that can REALLY say it will cover funeral costs at the persons death.  That policy is available through funeral homes, it is an increasing whole life policy that the funeral home accepts for the purchase of a funeral at a specific time and then guarantees to give that equivalent funeral whenever the person dies without any further cost except some expense that might be beyond those spelled out in the contract.  I began to teach classes for CE on this kind of policy for our state and for many insurance agencies.  This is a completely different policy that can be of great benefit to a local independent agent working with a local funeral home.  As I began to teach about this type of Life Insurance I found most Life Insurance agents had never heard of it or had been sold against it by companies writing supposed, last expense, death benefit policies.  I have now written this type of policy for almost 20 years and the families of the deceased have nothing but praise for a properly planned REAL Funeral Policy.  At 81 years old the death benefit of my funeral policy now exceeds the death benefit of the first policy I bought for total family protection.  If I am blessed with a few more years it may equal what I used to think was a huge Life Insurance policy. I am still writing these policies on my friends.  I have learned one thing over the years!  In the insurance business never close your mind to a type of policy until you have totally studied it yourself rather than being sold a bill of goods by a company that may not have the policy you are trying to learn about.  Worry about that client,first and foremost, and do the best job you possibly can for that individual by increasing your knowledge of this business.  I have covered some of the aspects of this policy in my recently published second edition of "The Prophets Dollar", available on Amazon.
    Answered on December 10, 2013
  5. 1330 POINTS
    Mark Taylor
    Licensed Life Agent, Life and Finance/ 50 States, New York
    Life Insurance does pay for funeral cost and in regards any other financial obligation that the benefit may be given to the beneficiary. Most important is funeral cost since there are many instances where no life insurance is purchased and there are no planned finances in the event of a sudden death in the family or there is nay other financial burden in place at that time. Many companies will pay the beneficiary 24 hours after they receive the death certificate in a lump sum, and tax free payment. The money can be used for anything they choose, however , there is the extreme purpose to repair any financial burden, and pay for any instance that may cause any of these financial burden. Funeral costs has risen in the last decade and there is a forecast that they will remain rising making it non affordable so life insurance is where we can use the benefits including other costs that may cause hardship.
    Answered on December 10, 2013
  6. 1554 POINTS
    Marcy Tooker
    Life & Health Insurance Agent, The Tooker Agency, Riverhead NY
    Coming up with the funds necessary to pay for a funeral and final expenses can be a problem for many families. Even if the deceased had sufficient life insurance, the funeral home often wants to be paid up front. In order to deal with this problem, most funeral homes will accept an assignment of the life insurance policy. The beneficiary can complete an assignment form where they are authorizing the life insurance to pay the funeral home for their services directly from the death benefit when the claim is paid.

    By doing this the funeral home is secure in knowing that their fees will be paid by the insurance company and therefor will not require prepayment. When the life insurance company processes the claim they will send a check directly to the funeral home and the balance of the death benefit will be paid to the beneficiary.
    Answered on May 13, 2015
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