No. The Catholic Funeral Plan® is not designed to replace any life insurance you may already have. It’s intended only to provide the funds needed to pay for your funeral, so your family is not burdened financially at the time of your death. It frees any existing life insurance to pay for other costs your family might incur, or to become a part of their inheritance. The policy’s proceeds have no current tax consequences for you and won’t be included in your estate. And the policy does not disqualify you from receiving Medicaid benefits.