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  1. #1
    Toddyt is offline Junior Member
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    Unhappy Beneficiary refuses to pay for funeral expenses

    What is the name of your state (only U.S. law)? Wv

    Can anything be done when a beneficiary refuses to use life insurance money to pay for a persons funeral expenses, because said beneficiary paid the insurance premiums? So far the only thing I have done was offer to pay, which makes no senses to me.What is the name of your state (only U.S. law)?
  2. #2
    Zigner is offline Senior Member
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    Quote Originally Posted by Toddyt View Post
    What is the name of your state (only U.S. law)? Wv

    Can anything be done when a beneficiary refuses to use life insurance money to pay for a persons funeral expenses, because said beneficiary paid the insurance premiums? So far the only thing I have done was offer to pay, which makes no senses to me.What is the name of your state (only U.S. law)?
    Why do you think the beneficiary is required to pay the funeral expenses out of his/her money?
  3. #3
    Betty is offline Senior Member
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    Agree, the ins. proceeds go to the bene named in the policy to do with
    as they wish.
  4. #4
    milspecgirl is offline Senior Member
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    heck- especially if they paid the premiums.
  5. #5
    Betty is offline Senior Member
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    Quote Originally Posted by milspecgirl View Post
    heck- especially if they paid the premiums.
    Right!
  6. #6
    justalayman is offline Senior Member
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    the decedents estate is liable for the costs of the funeral. If there are no assets, then whomever volunteers to pay for the funeral pays for it. If there are no assets and nobody willing to pay, most states have either a pauper service or will dispose of the remains in some way.
  7. #7
    Blue Meanie is offline Senior Member
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    So far the only thing I have done was offer to pay, which makes no senses to me.
    This makes no "senses" to me.
  8. #8
    applecruncher is offline Senior Member
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    A lot of life ins policyholders don't realize that a funeral home can be designated as beneficiary (or they can direct that XYZ Funeral Home receive a %).
  9. #9
    Betty is offline Senior Member
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    I worked for a life ins. co. (mainly underwriting applications) & we had a few
    (but very few) apps. where it was designated that part of the proceeds
    was to pay for funeral expenses (they had to give an actual amount or % to
    go to the funeral home). Of course, the whole amount (if it was reasonable)
    could be paid to the funeral home.

    As you said, applecruncher, a lot of people don't know you can do this &
    some just don't do it.
  10. #10
    applecruncher is offline Senior Member
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    Betty, I really didn't think about it until a few years ago when I saw how it can actually simplify things when a loved one dies. The funeral home gets verification that the policy is in force, then the appropriate document is faxed/emailed or whatever and it's done - so arrangements can be made. This prevents people looking at each other wondering who is going to pay for the funeral, and of course it's separate from the will/estate. As we know, a funeral is a major expense - the funeral home is a business and they want assurance of payment.

    Probably a good idea to go talk to funeral home in advance and make sure an adequate % is allocated and also specify any details (casket, flowers, etc). The remainder can go to another beneficiary or be divided up among several beneficiaries. Just something for people to think about.

    However, regarding OP's issue - the beneficiary isn't obligated to pay (or chip in) for the funeral expenses. Of course, it's a nice thing to do, but they often just collect the money and do what they want with it. I've seen it happen - they file their claim and are never heard from again.
    Last edited by applecruncher; 12-08-2010 at 01:13 PM.
  11. #11
    Betty is offline Senior Member
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    Yep, in this case, the bene (OP) can do with the proceeds as they wish.

    You are smart to do what you have done. I commend you.

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