Can Life Insurance Cover Funeral Costs? 
Yes , life insurance is a very good way to cover funeral costs . You must have a policy that is in effect at the time of death , and since none of us knows when that will be , it is best to buy permanent insurance vs term insurance . There are companies that sell small `` final expense '' policies , or you can even use a larger policy ; the remainder of the death benefit that does not go toward funeral costs can go to other people or expenses . 