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Life insurance pays the funeral home first, causing a delay before your beneficiaries receive the payout. Funeral insurance will cover final burial expenses while allowing your beneficiaries to get an immediate payout of your regular life insurance policy. The loss of a loved one is emotional and traumatic. Making funeral preparations while grieving adds another layer of stress. Finances and the availability of funds compounds the issue. Typically, a life insurance policy will pay the funeral home and cemetery before disbursing funds to the beneficiaries. That means that your beneficiaries will have to wait a few weeks before receiving funds.
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