Can Life Insurance Cover Funeral Costs? 
The key word in this question is `` cover '' . All life insurance can be used toward that purpose if the beneficiary chooses to use it that way . Policies can be made with a Funeral Home as the beneficiary but only one kind of policy will answer the question of `` will it cover '' . When I first entered the insurance profession in 1957 we sold a $ 1,000 or $ 2,000 ordinary -LRB- permanent , whole -RRB- life policy for a person wanting funeral expense coverage . As I increased my knowledge in the insurance industry I went to including a `` Final Expense '' amount in the practice of total planning of a persons insurance needs . At that time we figured $ 10,000 sufficient to meet the needs of final hospital expenses , taxes , burial , etc. . It was not until I was Executive Vice President of a company that was sold to a company that wrote burial insurance policies through the funeral home . I became licensed with the new company and learned , at a much older age , that there is only one policy that can REALLY say it will cover funeral costs at the persons death . That policy is available through funeral homes , it is an increasing whole life policy that the funeral home accepts for the purchase of a funeral at a specific time and then guarantees to give that equivalent funeral whenever the person dies without any further cost except some expense that might be beyond those spelled out in the contract . I began to teach classes for CE on this kind of policy for our state and for many insurance agencies . This is a completely different policy that can be of great benefit to a local independent agent working with a local funeral home . As I began to teach about this type of Life Insurance I found most Life Insurance agents had never heard of it or had been sold against it by companies writing supposed , last expense , death benefit policies . I have now written this type of policy for almost 20 years and the families of the deceased have nothing but praise for a properly planned REAL Funeral Policy . At 81 years old the death benefit of my funeral policy now exceeds the death benefit of the first policy I bought for total family protection . If I am blessed with a few more years it may equal what I used to think was a huge Life Insurance policy . I am still writing these policies on my friends . I have learned one thing over the years ! In the insurance business never close your mind to a type of policy until you have totally studied it yourself rather than being sold a bill of goods by a company that may not have the policy you are trying to learn about . Worry about that client , first and foremost , and do the best job you possibly can for that individual by increasing your knowledge of this business . I have covered some of the aspects of this policy in my recently published second edition of `` The Prophets Dollar '' , available on Amazon . 