How to Use Life Insurance Money to Pay for a Mausoleum
All types of life insurance protect us in the event of an untimely death and pass on the benefit to a designated beneficiary. Final expense insurance, a variety of life insurance, covers the costs related to a funeral, burial, or cremation. Whether you have final expense insurance or full-coverage life insurance, you can use it to pay for end-of-life services.
Using Life Insurance to Pay for Burials
With final expense insurance, you prefund an end-of-life plan that will become available at the time of your death. Simply choose a funeral home, calculate your funeral costs, and purchase an insurance plan that covers your needs. Or, if you prefer, find an insurance plan first and then have your beneficiary specify the funeral home to use when you pass.
Paying for a Cemetery Mausoleum
Your final expense insurance pays for space in a community mausoleum or a cemetery lot for your private family mausoleum. Reserve space in a community mausoleum or a cemetery lot, calculate the costs, and add them to your end-of-life plan. Then, purchase a life insurance plan to match the costs.
After your death, 100 percent of the funds in your insurance plan are applied to your end-of-life costs, including your mausoleum space.
Paying for Private Estate Mausoleum
Life insurance covers end-of-life services. At death, your designated beneficiary submits your death certificate to your insurance provider and is paid a lump sum in the amount specified by your insurance plan. Following your death, your beneficiary can use the funds to pay for your end-of-life services and a mausoleum built on a private estate.
If you wish to construct a mausoleum on a private estate during life, you probably have to pay the price upfront. Another option is to cash in your life insurance policy and use it as a source of income, but this method reduces the benefit to your beneficiaries.
Final expense insurance costs a monthly premium now, but spares your family a future financial burden. Consider purchasing insurance and planning your burial ahead of time.