Funeral Expense Trust

A funeral expense trust is a small whole life insurance policy where funds are assigned to a funeral trust held by the insurance company. The trust pays the funeral home directly at the time of need.

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Funeral Expense Trust Highlights

  • Small, guaranteed issue whole life insurance policy
  • Portable between funeral homes and states
  • Offers immediate liquidity upon death
  • Face value typically ranges from $2,500 to $20,000
  • Most commonly single premium
  • Can be exempt from Medicaid

A Portable Policy with Liquidity at the Time of Need

Funeral expense trusts (FETs) offer clients a flexible and practical solution for funeral pre-planning. By adding this product to your portfolio, you can address a crucial client need while offering a simple, straightforward sales process. FETs provide peace of mind to clients by ensuring that funds are set aside specifically for funeral and burial expenses and can be structured to be Medicaid-exempt. In fact, many states exempt FETs for the Medicaid applicant’s family members as well. Funds from an FET are usable at any funeral home and are immediately available to the next of kin at the time of need.

Portable Policy

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