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We live in Ohio & I would like to use mom's insurance to prepay funeral expenses rather than turn it over to the state. Does anyone know how this works?

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Mom needs to review her policy to see what type it is and what is allowed. There isn't going to be one fixed answer on this. As she maybe could do a withdrawal, a loan, surrender or settlement of the policy. There can be tax issues & fees charged. The terms within the policy will determine what can be done. Review the policy and speak with your agent.
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