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.

BREAKING DOWN '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. Burial Insurance

    A basic type of life insurance that is used to pay for funeral ...
  2. Extra Expense Insurance

    Insurance coverage that provides funds for reasonable and necessary ...
  3. Variable Life Insurance Policy

    A form of permanent life insurance, Variable life insurance provides ...
  4. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an ...
  5. Funding Cover

    Insurance premiums held in an account and used to pay insurance ...
  6. Traditional Whole Life Policy

    A type of life insurance contract that provides for insurance ...
Related Articles
  1. Insights

    Companies Involved In A Nuclear Cleanup

    Learn about the specialized companies that are equipped to assist in a nuclear cleanup.
  2. Insurance

    Whole or Term Life Insurance: Which Is Better?

    Learn the difference between term life insurance and whole life insurance. Understand when it is beneficial to buy each type of life insurance.
  3. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  4. Insurance

    Prepaid Funerals: Frugal To The End

    With funeral expenses on the rise, find out how to go about prepaying for funeral costs, and whether it's right for you.
  5. Financial Advisor

    Why the Wealthy Should Buy Lots of Life Insurance

    Wealthy clients have an enviable problem — managing, preserving and growing wealth. Properly structured life insurance can help with these goals.
  6. Insurance

    Finding the Right Life Insurance

    Learn how to determine the type of life insurance you need and use our calculator to find out how much coverage you should have.
  7. Financial Advisor

    Is Life Insurance From Your Employer Enough?

    Covering the needs of the ones you would leave behind is not easy. But efforts to secure a life insurance policy outside of work should pay off.
  8. Managing Wealth

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
Hot Definitions
  1. Short Covering

    Short covering is buying back borrowed securities in order to close an open short position.
  2. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  3. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  4. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  5. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  6. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
Trading Center