Will Life Insurance Pay For A Funeral? 
Life insurance is a very good tool for paying a funeral . It is best to use Whole Life or guaranteed no lapse Universal Life , so that the policy is sure to be in effect when you pass . If you are on Medicaid , they may not want you to have a permanent policy like that because of its cash value . If that is the case , you can assign your policy to a funeral home -LRB- as long it is of a reasonable face amount for the cost of a funeral and burial in your area -RRB- . Many people simply leave the proceeds to a beneficiary they trust , with the instructions to pay their funeral first , then use the rest for other purposes . 