Definition of 'Cleanup Fund'
An insurance term referring to the final expenses associated with an individual after his/her death. The cleanup fund, or funds for final expenses, is a type of life insurance policy intended to cover the deceased's final expenses. Costs associated with funeral expenses, cemetery or mausoleum fees, and the costs of settling financial and property issues may be covered.
Investopedia explains 'Cleanup Fund'
A cleanup fund can be a standalone policy or written in conjunction with another type of life insurance policy. The cleanup fund provides the estate with a means of paying for certain expenses related to the death, including funeral expenses and the costs of settling the remaining estate.
A cleanup fund can also refer to an account which has monetary resources devoted to environmental cleanup costs such as those following an oil spill.