Is Insurance is a good way to pay for a funeral?
Interest accrued by an insurance policy may be outpaced by funeral inflation and is generally less than what is earned by money in a trust. When a funeral is paid for with funeral insurance, either the funeral director will absorb the loss (and many reluctantly do) If what you have is life insurance, not funeral insurance, it may be considered an asset when applying for Medicaid. In that case, you’ll have to cash it in, getting pennies on the dollar. The same may be true if you’re making time payments on your funeral insurance, and, in hard times, you decide to stop making payments. In fact, the company may be able to keep everything you paid, as “liquidated damages.
