What If I Die Without Life Insurance?

Life insurance’s primary purpose is to prevent financial hardship for your loved ones. Whether it’s burial expenses or mortgage balance you worry about, a proper life insurance policy can help your beneficiaries avoid this misfortune. First, let us clarify two fundamental distinctions. A funeral is different than proper disposal of the body.
No one is entitled to a funeral (for those who say, “I don’t really care what happens when I die”), so if no one pays for your funeral service, guess what? The local government will take over and bury you in a potter’s field or cremate your body.

If, however, your loved one insists on having a proper burial and funeral service, they can pay for this themselves (which you may not want to burden them with) or use any assets you left behind to pay for it.

The person who signs the contract with the funeral home is legally obligated to pay for it. Hence, buying a policy isn’t really for you. It’s to prevent the extra headaches someone you love has to go through when they need to deal with all you left behind.