Assignment of life insurance to funeral home

Why Zacks? Learn to Be a Better Investor. Forgot Password. The price of a funeral has increased significantly since the National Funeral Directors Association began collecting statistics in Paying for a funeral can be a burden for family members, so many people choose to use a life insurance policy to secure funeral payments.
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Let's talk about it I THOUGHT I WOULD GET SOMETHING BACK FROM THAT $10, INSURANCE POLICY

The truth is, there can be many unexpected complications with life insurance policies. Some are no longer valid because no one has paid on them in years, and they have now lapsed. Some have beneficiaries named who are no longer living , which means delays and complications with getting your claim paid. The policy may have a lien on it. Or, the date of death or cause of death could limit the death benefit.
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The Truth About Life Insurance and Funeral Expenses

Through an assignment of life insurance, a beneficiary can assign all or a portion of her life insurance benefits to a funeral home. The extent to which these rights can be transferred depends on the assignment provisions in the insurance policy, the intention of the parties as expressed in the assignment form, and the actual circumstances of the assignment. The hazards of accepting life insurance assignments begin at the arrangement conference.
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Whether your loss is unexpected or you are making pre-arrangements, we are here to ease the financial burden of caring for the death of your loved ones. Your Funeral Professional will discuss the option of Insurance Assignments with you and provide the paperwork necessary to assign policy benefits as an accommodation to you at no additional charge. The funeral home receives no compensation for doing so.
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