Will life insurance pay for my burial?

Many people invest in life insurance to help their family members pay burial costs and to help with other living expenses. However, life insurance can be used to provide money for a wide variety of different expenses. Typically, a life insurance policy will list a beneficiary to receive the cash benefit without having to go through probate. The beneficiary can make burial plans after the policyholder has died.

Our team at Baldo-Downs Insurance LLC knows that Tuscaloosa, AL residents may have questions regarding how to use their life insurance policy to pay for a burial. We are here to assist you with this important insurance coverage.

How Does Life Insurance Cover Burial Costs?

The policyholder lists a beneficiary to receive a cash benefit after they pass away. This cash benefit can be applied to burial costs. The beneficiary typically takes the life insurance policy to a funeral home and the funeral home fills out the paperwork. The funds are then applied to the bt cover the burial costs. However, the cash benefit may or may not cover the full burial cost. Anything that’s not covered by the life insurance company will be the responsibility of the beneficiary or their family. The funeral home will claim the benefit on behalf of the beneficiary and apply it to the funeral/burial costs. 


A life insurance benefit is paid to a beneficiary. This means that the beneficiary can use the funds however they see fit. There’s no automatic guarantee that the beneficiary will use those funds to pay for a burial. The beneficiary could use the funds to pay for other expenses. The sole choice in deciding how the funds are spent is left to the beneficiary’s discretion. The beneficiary receives the funds from a life insurance policy shortly after the policyholder has passed away.

Contact Us Today

If you’re concerned about paying for a loved one’s burial and want to know how life insurance can help, call us at Baldo-Downs Insurance LLC in Tuscaloosa, AL. We can answer all of your questions.