1. 12689 POINTS
    Ted RatliffPRO
    Owner, SFS Associates,
    As long as the face amount is enough to cover the funeral bill.  Life insurance can cover whatever it is set up to do.  There are no restrictions on what the money can be used for.  The beneficiary can decide how best to use the money according to the circumstances.
    Answered on May 30, 2013
  2. 1554 POINTS
    Marcy TookerPRO
    Life & Health Insurance Agent, The Tooker Agency, Riverhead NY
    Many funeral homes will accept an assignment of a life insurance policy in order to pay for final expenses. Your beneficiary can give the funeral home the details of your life insurance policy (company, acct #, etc.) and the home will contact the company to verify that the policy is in force. Your beneficiary can then sign an assignment form in lieu of paying the funeral home directly. When the life insurance company pays the claim they will send a check for the amount owed directly to the funeral home, then the balance will be paid to your beneficiary.
    Answered on April 28, 2015
  3. 5877 POINTS
    Stan Cox IIPRO
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Typically the death benefit of a life insurance policy has no specified requirements other than it is to be paid to the named beneficiary or beneficiaries upon proof of death of the insured. How the money is then used is not governed or directed unless the insured has stated in their will that the beneficiary should do something in particular with it.

    There are types of policies that are designed specifically to be final expense or funeral expense policies, but unless the mortuary is the beneficiary, how the beneficiary uses the money is not dictated by the policy.
    Answered on July 5, 2015
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