Cleanup Fund

AAA

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.

RELATED TERMS
  1. Final Return For Decedent

    The final tax return filed for an individual in the year of that ...
  2. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  3. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Term Life Insurance

    A policy with a set duration limit on the coverage period. Once ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Home & Auto

    A New Approach To Long-Term Care Insurance

    This practical product can protect you from the rising cost of care and provide for your beneficiaries at the same time.
  2. Retirement

    Variable Vs. Variable Universal Life Insurance

    Do you know why you might need one policy versus the other? Read on to find out.
  3. Retirement

    Life Insurance: How To Get the Most Out Of Your Policy

    There are many benefits to owning a life insurance policy - if you get the right one for you.
  4. Options & Futures

    Getting Started On Your Estate Plan

    With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips.
  5. Options & Futures

    Long-Term Care Insurance: You Have Options

    The latest offerings provide more coverage and the ability to pick and choose what types of coverage you'll need.
  6. Insurance

    Life Insurance: Putting A Price On Peace Of Mind

    Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.
  7. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  8. Insurance

    How to Use a Waiver of Subrogation

    A waiver of subrogation means that a party to a contract waives the right to allow someone (usually an insurance company) to sue the other party to the contract in case of a loss.
  9. Insurance

    Should You Borrow From Your Life Insurance?

    A loan against the cash value of your life insurance isn't the best way to raise money – but sometimes it's the best choice you have. How to decide.
  10. Insurance

    Life Insurance: How Long Does It Take To Get Paid?

    How to file for a life insurance payout – and how long it takes to receive it. Plus, new ways to plan for payments that provide an income stream.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center