Yes life insurance can cover funeral costs if you have the right type of life insurance and enough of it.
If you're buying a policy mainly to cover funeral costs you want to make sure that it is a whole life policy not a term and usually not a universal life.
Depending on your age you need to figure inflation in and buying the amount To cover a funeral not only today but in future years.
An average funeral today is $8,000 to 10,000 in most parts of the country. But those costs have always doubled every 15 years or so.
Life insurance proceeds go to the beneficiary that is named on the policy at the behest of the policy owner. The beneficiary can use those proceeds in whatever way they wish. This can be to pay for funeral costs, pay off a mortgage, roll it over into a new life insurance policy, etc.
Life insurance proceeds are sent to the legal beneficiaries of the life insurance policy. There are no dictates to beneficiaries, (unless in some will or directive document.) So the beneficiaries are free to use the death benefit proceeds as they see fit. It is, however, highly recommend that all final expenses and outstanding debts are paid first.
Yes, life insurance can be used for funeral expenses or anything else your beneficiary would choose. The life insurance policy designated especially for funeral expenses is called a final expense plan. However, any type of life insurance be it whole life, universal life or term life insurance proceeds can be used for funeral and final expenses. Life insurance proceeds can also be used for repaying debts, funding a child's education or invested to replace the income of a loved one's income. The nice benefit about life insurance proceeds if set up properly are tax free.
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If you're buying a policy mainly to cover funeral costs you want to make sure that it is a whole life policy not a term and usually not a universal life.
Depending on your age you need to figure inflation in and buying the amount To cover a funeral not only today but in future years.
An average funeral today is $8,000 to 10,000 in most parts of the country. But those costs have always doubled every 15 years or so.