It is a contract between an insured and an insurance company in which the policyholder makes pre-decided installments per their policy. The payout is known as the death benefit and is designed to support their family financially. When one buys a life insurance policy, they may think it will also cover the funeral expenses, but the truth is, there can be many unexpected complications.
For example, the family must pay for the funeral home upfront, and the final claim may take weeks or even months to clear. The particular family may delay filing a claim, and sometimes getting the proper documents together can stretch the payment date out.