A Guide To Paying For A Funeral With Life Insurance
After a loved one passes, some families consider paying for the funeral/memorial service with Life Insurance. The financial burden associated with the death of a loved one can be eased in this manner. However, it is important to understand how this process works ahead of time. If you are planning on paying funeral costs using the deceased person’s Life Insurance, there are a few things you will need to know.
First and foremost, immediate payout of a Life Insurance Policy does NOT exist. The Death Certificate will have to be reviewed by the insurance company once a claim is filed; then, to determine the total benefit, an investigation may take place. Most funeral providers expect an upfront payment, so making funeral arrangements dependent upon a life insurance payout may be difficult. Before beneficiaries receive payment, it can take anywhere from 30 to 60 days. In some cases, it may even take months.
Now, any number of complications may arise. If you are the person with the Life Insurance Policy, and you want to help lessen the financial burden of your loved ones after you pass on, please make sure to do all you can, while you can, in order to ensure that everything runs smoothly.
Options for Policy Assignment
To pay for funeral costs, to a chosen funeral home, life insurance benefits may be assignable (through a beneficiary), depending on the type of life insurance. In paying directly to a third party or funeral provider, benefits would be directed after a form is completed by the recipient. With the appropriate life insurance company, a claim would then be filed. While preplanning a funeral, this option can be chosen by a policyholder. Their primary beneficiary – the funeral home – would then be specifically named.
As a form of payment, Life Insurance Policies are accepted by most funeral homes. However, before making arrangements with the funeral home, it is very important to communicate with the insurance company to verify the policy assignment terms.
Regularly Update Your Policy
To ensure coverage is adequate, your Life Insurance Policy should be regularly updated. After major life events, always review your policy to make any changes that are necessary (i.e., retirement, divorce, marriage, birth of child, etc.). If the circumstances change, you will need to make adjustments and routinely review your beneficiaries.
Today, numerous individuals are pre-planning their funerals. This includes making sure it is paid for in advance or that funds are readily available to the trusted parties.
American Heritage Cemetery & Funeral Home Can Help With Funeral Arrangements
If you have to plan the funeral of a friend or loved one, you may be unsure of how to go about pay for this service. If they had a Life Insurance Policy, this could be of assistance. We would be more than happy to help in assisting you sort out the all of the details at American Heritage Cemetery HYPERLINK “https://www.thehealingstartshere.com/about-us/”& HYPERLINK “https://www.thehealingstartshere.com/about-us/” Funeral Home. After all, this is why we are here, to help you get through the planning process of a funeral and to meet any other needs or concerns you may have.
At American Heritage Cemetery & Funeral Home, we will also help you preplan your funeral, which includes making arrangements for payment, in order to help take the burden off friends and family after you pass on.
We understand that losing someone you love is very difficult. With the help of our team during this difficult time, you will be able to honor your loved one with any final wishes they may have had, surrounded by friends and family.
We are located at 4100 N. FM 1788, in Midland, Texas 79707. Please feel free to contact us at 432-563-9767 with any questions you may have, or to set up an appointment to speak personally with one of our Funeral Directors. Our email contact information is [email protected].
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