Can funeral insurance be paid out in cash?

Question

José Manuel Alburquerque · Accepted Answer

Yes, in some cases. If the family arranges the funeral with a funeral director other than those offered by the insurer, or the insurer cannot provide the service, it must pay the heirs the sum insured, not the actual cost if that was higher. And if the service it provides costs less than the sum insured, the difference goes to the policyholder or his or her heirs. The insurer is not responsible for the quality of a service that the family arranges itself. When it is paid out in cash If the family chooses another funeral director and arranges the service itself. If the insurer was unable to provide the service for reasons beyond its control or due to force majeure. If the service provided cost less than the sum insured, for the difference. How to claim payment Notify the insurer of the death as soon as you can. Letting it know before engaging another funeral director avoids disputes. Request payment of the sum insured in writing, with the death certificate and the documents proving who the heirs are. Payment goes to the heirs, who are not always the people who paid for the funeral. They should come to an agreement. Two things worth knowing The insurer must give you a list of funeral directors to choose from, unless the policy provides for only one. If the deceased had several funeral insurance policies with different insurers, the one that does not provide the service must pay the sum insured to the heirs.