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Does Life Insurance Cover Funeral Expenses?

Yes, a life insurance payout can be used to cover funeral and burial costs, medical bills and other end-of-life expenses. However, life insurance policy beneficiaries can use the death benefit any way they choose. That's why it's a good idea to make your wishes known to your loved ones.

Learn more about your life insurance options below.

Understanding Life Insurance 

The best life insurance option for you will ultimately depend on your age, health and lifestyle, and the amount of coverage you require. Below, we evaluate three common life insurance options to give you a better idea of how they work.

  • Term life insurance* provides coverage for a predetermined amount of time (usually between five and 30 years). If the policyholder outlives the term of the policy, no death benefit is paid to the beneficiary. Generally, term life insurance more affordable than permanent life insurance.
  • Permanent life insurance doesn't expire, providing coverage for your entire life (as long as your premiums are paid on time and in full). Although permanent life insurance is usually more expensive than term life, it accrues cash value over time.
  • Final expense policies have lower payouts than traditional policies and are designed to cover funeral costs and other end-of-life expenses. Some final expense policies are "guaranteed issue"**, meaning there are no health questions or exams. Guaranteed-issue policies are usually restricted to a certain age range (50 and 85, for example). Therefore, even older adults with preexisting medical conditions can be granted coverage. These plans may have a graded death benefit for an initial period of time.

Other Uses for Death Benefits

Paying for your funeral is not the only way that your life insurance death benefit can be used. Other common uses for life insurance payouts include:

  • Paying your mortgage. Your mortgage doesn't go away when you pass away, and your family will likely be left with the payments. A life insurance policy will help your family continue to make mortgage payments to ensure they do not have to sell the property and move.
  • Providing a financial safety net for your family. A life insurance policy can help make up for your loss of income, pay for child care and maintain your family's standard of living. How far your family can stretch the life insurance payout depends on how large of a policy you purchase. 
  • Saving for your child's future. The death benefit of a life insurance policy can help pay your child's college tuition or pay for a private school while they are young.

Learn More

To learn more about life insurance and how it works, speak with a licensed life insurance agent at 1-855-303-4640, or read through some of our guides below.


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*Applications for term life insurance are subject to acceptance by insurer. Issuance of the policy may depend upon answers to health questions. Rates and coverage amounts depend upon the carrier selected and are subject to underwriting approval and are not guaranteed. You will receive only the benefit amount in the policy issued.
**Guaranteed issue life insurance policies are available to individuals within a certain age range. You will receive only the benefit amount in the policy issued. Plans may have a graded death benefit for the first two years. In order for the policy to remain in effect, premiums must be paid as they become due.

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