Can Life Insurance Cover Funeral Costs? 
Coming up with the funds necessary to pay for a funeral and final expenses can be a problem for many families . Even if the deceased had sufficient life insurance , the funeral home often wants to be paid up front . In order to deal with this problem , most funeral homes will accept an assignment of the life insurance policy . The beneficiary can complete an assignment form where they are authorizing the life insurance to pay the funeral home for their services directly from the death benefit when the claim is paid . By doing this the funeral home is secure in knowing that their fees will be paid by the insurance company and therefor will not require prepayment . When the life insurance company processes the claim they will send a check directly to the funeral home and the balance of the death benefit will be paid to the beneficiary . 