Why does the designated beneficiary of insurance proceeds receive funeral reimbursement when it was not their personal funds that paid the bill?
A beneficiary of an insurance policy is entitled to keep the proceeds of the policy and spend the money on anything. They are not obligated to spend the money on the decedents funeral. Therefore because the law allows payment of the first $1,500.00 of funeral expenses, the insurance beneficiary is entitled to be repaid for up to $1,500.00 of funeral costs.
Related Questions
- Why does the designated beneficiary of insurance proceeds receive funeral reimbursement when it was not their personal funds that paid the bill?
- How long before the money will appear in the designated account or be paid to my beneficiary?
- If the beneficiary is a minor, can a guardian of property assign proceeds to a funeral home?
