Who pays for a funeral if there is no insurance? A complete guide
You may have wondered at some point who pays for a funeral if a loved one dies without any insurance. At Áltima, we will provide you with a complete guide to explain this type of situation and how to proceed.
Why is it so important to understand who pays for a funeral if there is no insurance?
It is more common than we think for a person to die without having insurance for their funeral. In such cases, the cost of funeral services can be very high.
How much does a funeral without insurance cost? The price can vary significantly depending on a number of factors, so it is important for your family finances that you understand who pays for the funeral of a deceased person.
In Spain there is a very clear regulation regarding this, as established in article 1,894 of the Civil Code: ‘Funeral expenses proportionate to the quality of the person and the customs of the locality must be paid, even if the deceased has left no assets, by those who in life would have had the obligation to feed him or her’. Therefore, such an obligation is the responsibility of the family.
Legal obligations of relatives and heirs
As we have just said, it is the family of the deceased who pays for a funeral in the absence of insurance. Now let us look at the nuances of these legal obligations.
Main financial responsibility for costs
It is the legal heirs of the deceased who are responsible for paying for the funeral if there is no insurance. This may be spouses, children, parents or any person designated in the will.
Not all family members, therefore, are obliged to meet these costs. Siblings, for example, are excluded, unless they are recognised as heirs in the will.
This also means that any heirs, whether or not they are family members, must meet the cost of the funeral if there is no insurance.
Administration of the deceased's assets
It is possible to use the resources of the deceased person's estate to cover the costs of his or her own funeral. Money from bank accounts, real estate, vehicles and other assets, even before the distribution of the estate, can be used to pay for the funeral. This money can be withdrawn from the bank account even if the account has more than one holder.
However, it is the responsibility of the financial institution concerned to ensure that the money withdrawn is only used to cover funeral expenses, in order to avoid possible future complaints by the heirs. This is why banks will request quotes and make the corresponding transfer directly to the funeral company.
Consideration of outstanding debts
It is quite common for family members to use these resources to pay outstanding bills and even the costs of the funeral.
As we know, the debt of a person does not disappear when he or she dies, but is transferred to the estate and paid with that money. Heirs, therefore, not only receive property and assets when they accept an inheritance, but at the same time accept outstanding financial obligations.
Who pays for a funeral if there is no insurance and the relatives have no money to pay for it? One option is to ask the local council to pay for the funeral. This will have to be requested through social services, although these costs can be reclaimed at a later date. To qualify for this assistance, certain requirements must be met, which are established by each municipality.
This is the case when there are no relatives or claimants for the deceased. In such cases, the local council covers the funeral expenses and then tries to locate the relatives and heirs in order to claim this amount. These people would have to prove that they do not have the resources to pay for the funeral costs.
In many places there are non-profit organisations and government programmes that offer funeral assistance to people without resources. They can help with costs or provide information on the most affordable options.
Financial recommendations for paying for a funeral without insurance
Since it is the family of the deceased who pays for a funeral if there is no insurance, it is important to be aware of all the financial options available should this situation arise.
The cost in such cases can be very high. This is why it is essential to look for cost-saving solutions so as not to place a heavy financial burden on the heirs.
The best thing to do is to take out funeral insurance to avoid this situation for your relatives, or to plan your own funeral during your lifetime and contract the desired funeral services in advance.
Finding a company that offers maximum customisation will allow you to decide on the services you wish to add so you can adjust the costs to your personal budget.
Cremation is usually the most cost-effective option so is obviously the best choice for families looking to cut costs.
The last option is to donate the body to science, but in order to do so, the deceased person must have a donor card. In this instance, the family would not bear the cost of the funeral or the transfer of their loved one to the premises of the related institution, such as a university or a research company. Instead it would be the institution that would assume this cost. However, if a funeral is to be held beforehand, these expenses are paid by the family.
