Many life insurance policies pay a lump sum when you die the beneficiary of your choice. It will pay for your funeral or any other general financial need for your survivors. The payment is made shortly after your death and there is no need to go through a legalization process. If a loved one dies and has an existing life insurance policy, it can be used to pay for funeral services.
A family member simply needs to bring the policy information when they meet with the funeral home, which will handle all the documentation needed to apply for the benefit on their behalf. Depending on the type of insurance policy, the beneficiary can assign life insurance benefits to a funeral home to pay funeral service charges. The beneficiary will complete a form to designate benefits directly to the funeral service provider or to a third party, who will then file a claim with the life insurance company. Insured persons can choose this option when pre-planning a funeral by naming the funeral home as the primary beneficiary.
Most funeral homes accept life insurance policies as a form of payment. Even so, it's important to check the terms of assignment of the policy with the insurance company before making arrangements with the funeral director. Nationwide Life Insurance Company, Nationwide Life and Annuity Company, Nationwide Investment Services Corporation and Nationwide Fund Distributors are independent companies, but not all universal life insurance policies will generate much cash value, but universal life insurance may be less expensive than life insurance integral. Burial insurance doesn't provide a high amount for the death benefit, so it's not a good option if you want a policy that covers your mortgage or an income replacement.
If you want to leave a more substantial sum, consider a policy that may have a more significant value, such as a traditional lifetime policy. Burial insurance policies are not intended for people raising families and who need life insurance to cover larger obligations, such as a mortgage, children's college tuition, and income replacement during their best working years. When you die, your beneficiary files a claim with the life insurance company and must generally provide a certified copy of the death certificate. If you take out a guaranteed issuance life insurance policy to pay for your burial, you won't have to answer any health questions, skip the medical exam, and you can't be denied coverage.
If you're a healthy young adult, statistically you're unlikely to die anytime soon, and the cost of paying for a burial insurance policy over time isn't likely to be worth it. Full life insurance is a life insurance policy that generates cash value and provides lifetime coverage. Given the high cost of funerals, having a burial insurance policy can help reduce the costs your loved ones face due to their death. Many families consider using life insurance to cover funeral and burial expenses after the death of a loved one.
An advantage of having a simplified-issue life insurance policy to pay for your funeral is that it generally costs less than guaranteed issuance life insurance. You might also consider buying a temporary life policy to replace your income if you die before you retire and a burial policy to cover your final expenses, no matter when you die. Universal life insurance is a lifetime coverage option that may be less expensive than full life insurance.