Yes, life insurance can be used to cover funeral costs with the lump sum that is paid out when the policyholder passes away. The majority of funeral homes will take life insurance to cover funeral costs.
When taking out a life insurance policy it is possible to set aside a percentage of the pay-out to cover funeral costs. The beneficiary of the life insurance policy could then use this money to cover the fees for the funeral, with the majority of funeral homes accepting this.
It is very important that the person who is setting up the plan makes the beneficiary aware they have set this up, as the beneficiary is not obliged to use the sum paid out to pay for the funeral.
Some insurers offer funeral life insurance add-ons to their policies. Life insurance with funeral cover sets a certain amount of money aside to pay for the funeral. This means you’ll be sure that the funeral will be covered with the funds.
Having such an arrangement in place is also one of the final ways you can make a difficult time for your family a little easier. Reducing the emotional stress for your loved ones with taking steps to cover costs.