Does the life insurance have to go for the funeral cost?

Question

My dad died at the end of June. My mom and dad were divorced. My brother and I were his only children. My dad lived in Ohio, and was in a nursing home when he passed away. I live in North Carolina. My brother and his girlfriend and child live in Ohio. The day after my dad died my brother said he and I needed to go to the funeral home and make all the arrangements for the funeral. When I got to Ohio my dad's sister, who I have no contact with at all, at already made all the arrangements for his funeral. My brother and I were taking his death so hard we didn't like the fact that she had made arrangements but did not want to cause any problems so we didn't say anything. My uncle told my brother and I that my dad had a 3,000 dollar life insurance policy and my aunt that arranged the funeral wanted us to give her the money to cover the funeral cost. We were going to before the funeral but at the funeral she acted really bad, several times she was laughing and smiling and after the funeral my brother went to get in the limousine they had rented and she slammed the door on him and locked it so he couldn't get in. After that I decided not to give her my part of the life insurance. My brother is not going to either. Do we have to? She never discussed with us the cost of the funeral or anything about the funeral with us. Its not really about the money its how she acted. I don't want her to have the money because of the way she treated us at the funeral. We want to use the money to put a headstone on my dad's grave. Do you think we have to give her the money? As of right now my dad has no headstone just a cheap brass plate with his last name on it.

Answer 1

The person who was the beneficiary on the life insurance has a right to do with it however they want. Normally I would say it would be put toward the funeral cost but your aunt does not seem to care about you and your brothers feelings. I think it is very appropriate to use the money to buy a better headstone (if you were using it to go on vacation it would had sounded selfish so I applaud you for using it to do something in your dads memory).

I am very sorry for your loss. It seems that the death of a loved one brings out the best and worst in families. Hang in there. Things will get better. Remember the good times with your dad and it will help you heal.

Answer 2

No, you don't have to give her anything.  She has absolutely no right to the life insurance policy.  If you feel that you want to help pay for the funeral go ahead.  If you want to spend some money on a headstone, you can do that too.  The money is yours to do with as you please.  Let your conscience guide you.  

I am sorry for your loss, good luck to you.

Answer 3

Life insurance is the policy that usually protects families after the sudden death of a the policy holder. Sometimes it may be beneficial for the funeral cost. Different insurance companies have different policies. So better you negotiate with your insurance comapny for details.

http://www.rghins.com/

Answer 4

I am not sure if this would help... i am just trying..

For many, life insurance is a great death-benefit protection for families. When the breadwinner dies, the survivors get the money to help provide for the family. But life insurance can be used for other purposes, including paying for funeral expenses.

Most people purchase a life insurance with a small face-value specifically to cover funeral costs. Yearly premiums are easier to handle, often in monthly installments with carrying charges built into the cost.

Good, affordable for those with limited means. It also grows at the same rate and there's no need to report it on a 1099 since it's not considered taxable income. Some opt for renewable term insurance, which provides the most death-benefit protection.

You can get it for one, five or ten years, according to one funeral director we spoke to. It's inexpensive (compared to an ordinary whole life insurance) and it carries a fixed death benefit, which is its face value.

The drawback is, if not renewed, it lapses and disappears. If you're confused with all the choices, get help from a good insurance broker to evaluate your insurance needs.

Answer 5

She made the arrangements....so she can pay.  If you're the beneficiary you get the money.  PERIOD.

The only issue that could arise is if you told the funeral home that you were responsible or if you made a promise or some other legally binding statement that you would pay.  If they 'thought' you were going to then that's their mistake.

Life insurance proceeds is just a check made payable to the beneficiary.  You could buy him a headstone or you and your brother could go to Cancun...just be sure to send your aunt a postcard.

8-)