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Do Funeral Homes Accept Insurance Policies?


My father has a life insurance policy with me as beneficiary and I need to know at his death when I make arrangements will the funeral home want money up front or will they take policy? How does this work?

Every funeral home has different payment policies. Many independently-owned funeral homes will accept an assignment of the proceeds of an insurance policy for the payment of the funeral. In our area, corporately-owned funeral homes will not accept an assignment of the policy; they will require payment at the time of service.

The way this works is to bring the policy into the funeral home at the time of the arrangements conference. Be forward with the funeral director, tell him (her) this is how you intend to pay for the services. The funeral home will ask you to sign an assignment form assigning the amount of the funeral be paid from the proceeds of the policy.

Most funeral homes that do accept assignments will process the paper work for you. Usually the insurance company will cut two checks (depending on the size of the policy); one to the funeral home for the services and the other to you for the amount above the cost of the funeral.

Please be advised there are a few fees that may not fall into the area covered by the policy--these are called cash advanced items(CAI). The CAI include: cemetery opening fees, clergy stipend, musicians (church organist), certified copies of the death certificate, newspaper obituary notices, flowers, etc.

The funeral home may ask for these items to be paid for up front. Many funeral homes have a copy of their payment policy printed in their General Prices List. I would recommend looking for a funeral home willing to accept assignments of proceeds.

Thanks for your question.--Stephen Dawson

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