Will Life Insurance Help Pay for a Funeral?

Does Life Insurance Pay?

One of the most common questions asked by grieving family members after the death of a loved one is “Will life insurance help pay for a funeral?”

The short answer is “yes,” but there are definitely some things you have to know. First, a life insurance policy should certainly be able to play for the funeral, but the policy must explicitly say that the beneficiary should get the insurance payout upon death. If not, then one might have to pay out of pocket for the funeral until they get that check, which could take up to 8 weeks.

“People shouldn’t expect to use insurance money to pay for funerals because it’s tough to know when that claim is going to be paid,” said Garrett Jacobs, of Boca Raton Funeral Home and Cremation Service, and the co-owner of The Gardens of Boca Raton – Cemetery & Chapel.

“If you have a funeral that happens on a Friday and you want a service to happen on Monday or Tuesday,” said Jacobs, “the soonest you’ll be able to get hold of the insurance company is on Monday.”

Buy Space Ahead of Time

Some people get policies that pay within 48 hours, which helps paying for the funeral. Rather than beg, borrow and steal to get the funeral paid for while waiting for the insurance company to pay, some look ahead and pay ahead of time. By taking care if this now, paying $50, $75 or $100 per month for a burial space, rather than having to come up with a bulk payment all at once, you can help your family even when you’re not around anymore.

Young people really shouldn’t worry about doing this because they don’t know where they’re going to live decades from now, even though young people pass away all the time. You just don’t want to be buying space and selling space every time you move.

“When you become of age,” said Jacobs,”and you know where your children are living and you know where you want to retire, you make that decision that if something were to happen to you, you know where that space is going to be.”

Jacobs goes on to explain why it’s beneficial for other reasons, too. “You’re able to go into a place and pick it out, when you don’t have any health issues. You’ll figure out how you want to pay for it, then when the time comes, you have it paid for. It’s an asset of yours! You can give it to your family if you’re not going to use it, or resell it down the road.”

Families do have to give us the first right of refusal at The Gardens Memorial Park and Cemetery, but that’s something you’ll want to confirm wherever you buy your plot. “If they’re not comfortable after 30 days, they can always get their money back,” Jacobs explains. “After 30 days, they come to us and ask us if we’d like to buy the property back, then they can sell it on the open market, or sell to a friend or relative.” The Gardens will charge a small $50 transfer of deed title, but it’s relatively easy to do.


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