How to Transfer Ownership of a Life Insurance Policy to a Funeral Home

Planning for final expenses in advance can bring peace of mind to both policyholders and their loved ones. One option is transferring ownership of a life insurance policy to a funeral home—a strategy that simplifies the payment process and ensures funeral costs are covered directly. But how does it work, and what do you need to know?

What Does Transferring Ownership Mean?

When you transfer ownership of your life insurance policy, you’re assigning legal rights to someone else—typically the funeral home. This allows them to directly claim the death benefit, ensuring funds are used exclusively for funeral services without delays or complications.

Why Someone Might Transfer Ownership

Guarantees Coverage: Ensures the funeral home is paid in full
Simplifies Planning: Avoids requiring beneficiaries to manage the policy
Reduces Medicaid Countable Assets: In some states, transferring ownership may help with Medicaid eligibility planning

Steps to Transfer a Policy to a Funeral Home

Contact your insurance provider and request a transfer of ownership or assignment form
Work with the funeral director to outline the services to be covered
Submit the completed form with the funeral home listed as the new owner or assignee
Confirm the policy has been successfully updated and filed

In some cases, an irrevocable assignment is used instead of full ownership transfer, giving the funeral home limited access only to the portion of the death benefit that covers funeral costs. Learn more from Funeralocity and Burial Senior Insurance.

Things to Consider

Policy Control: You give up rights to change or cancel the policy after the transfer
Irrevocable Assignments: Often required for Medicaid planning and cannot be reversed
Legal Consultation: Talk to a licensed agent or attorney before signing

North Star Can Help You Understand Final Expense Planning

North Star Insurance Advisors specializes in final expense insurance—simple, affordable life insurance policies designed to cover funeral and burial costs. Our licensed experts can walk you through your options, including policy assignments, and help ensure your final wishes are carried out.

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