Conversationalist ⭐⭐⭐

Life Insurance versus Pre-paid Burial

Forum|Forum|1 year ago
November 10, 2024
17 replies
11121 views

I hear commercials all the time pushing Life Insurance for seniors. I do have Life Insurance but I also have a pre-paid burial plan. I usually tell other family members that if they don't have a spouse/family member counting on a Life Insurance payout or a large amount of debt, they should focus on pre-paid burial plan. (Let family members know you have this and that your wishes have been made in advance.)

So many families seem to stress that they don't have Life Insurance.

This topic has been closed for replies.

SummerOnTheWay1

📎@GAKKIEZ , I am assuming it is prepaid to a certain funeral home? IF yes, what happens IF place goes out of business or price increases?

[*** GAKKIEZ wrote: I hear commercials all the time pushing Life Insurance for seniors. I do have Life Insurance but I also have a pre-paid burial plan. I usually tell other family members that if they don't have a spouse/family member counting on a Life Insurance payout or a large amount of debt, they should focus on pre-paid burial plan. (Let family members know you have this and that your wishes have been made in advance.)

So many families seem to stress that they don't have Life Insurance. ***]

GailL1

Community Champion ⭐⭐⭐

@SummerOnTheWay1

You can go thru a funeral home that offers this service or you can go thru a burial society.

With either of these the parties come up with the price of the funeral that you want - they also look at your age in the cost - you then buy a financial instrument like a Certificate of Dposit that earns interest - it is in your name for the specific purpose of burying you in the the specified manner you want. Any price increase is offset by the interest it earns. The funeral home or the burial society is the beneficiary of the policy - if they don’t exist for some reason it goes back to your estate for the specific purpose.

You can also do it the same way on your own. Buy a CD with the cost of the burial (plot included if necessary), set it up in your Will that it is specifically for this purpose and let any interest earned go towards any increase in price. Then all you do in your will is outline your wishes - the how and the plot for your executor to follow thru on.

If people don’t have the money to pay for this type of investment or they can’t begin to save for it - then some people buy a life insurance product that will cover it. The older you are, the more it will cost per month; the more elaborate your wishes, the more it will cost to cover.

But if you are gonna be paying monthly money for an insurance product for this purpose, you can accomplish pretty much the same thing by paying that monthly money into a savings account and letting it begin to grow.

It just has to be a consistent funding - or consistent payment each month. A credit union will open an investment savings account for as little $ 50 - then one just keeps adding to it month after month.

IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna

SummerOnTheWay1

📎 Gail @GailL1 , cremation for me. Thanks for info.

[*** GAIL wrote: You can go thru a funeral home that offers this service or you can go thru a burial society.
With either of these the parties come up with the price of the funeral that you want - they also look at your age in the cost - you then buy a financial instrument like a Certificate of Dposit that earns interest - it is in your name for the specific purpose of burying you in the the specified manner you want. Any price increase is offset by the interest it earns. The funeral home or the burial society is the beneficiary of the policy - if they don’t exist for some reason it goes back to your estate for the specific purpose.

You can also do it the same way on your own. Buy a CD with the cost of the burial (plot included if necessary), set it up in your Will that it is specifically for this purpose and let any interest earned go towards any increase in price. Then all you do in your will is outline your wishes - the how and the plot for your executor to follow thru on.

If people don’t have the money to pay for this type of investment or they can’t begin to save for it - then some people buy a life insurance product that will cover it. The older you are, the more it will cost per month; the more elaborate your wishes, the more it will cost to cover. ***]

DirkB349973

Conversationalist ⭐

A pre-paid burial makes a lot of sense to me. Life Insurance is also a way to leave an "estate" to your loved ones when you don't actually have an estate. If you are older and you haven't already purchased life insurance, you may end up paying a lot for a very small amount of coverage. These $10/month plans you see on TV are overpriced.

SummerOnTheWay1

📎 Dirk @DirkB349973 , I donot have an "estate" - in your opinion, what should Life Insurance cost for me at age 66 now IF I got some. Thanks, Nicole

[*** DIRK wrote: A pre-paid burial makes a lot of sense to me. Life Insurance is also a way to leave an "estate" to your loved ones when you don't actually have an estate. If you are older and you haven't already purchased life insurance, you may end up paying a lot for a very small amount of coverage. These $10/month plans you see on TV are overpriced. ***]

DirkB349973

Conversationalist ⭐

@SummerOnTheWay1,

My first question would be, why do you need an "estate"? Do you have children or grandchildren you are caring for? I think for most people of average means, 66 is a little late to be purchasing life insurance.

SummerOnTheWay1

📎@GAKKIEZ , I just wanted say how much I appreciate this discussion.

Thanks for creating it.

HAPPY Monday!!!

Nicole 🙃🙃🙃

G

GAKKIEZAuthor

Conversationalist ⭐⭐⭐

Thank you Nicole! I talk with family about this often (even young ones starting out).

SummerOnTheWay1

📎@GAKKIEZ , in your opinion, is it TOO LATE for me at age 66 to get Life Insurance?

Dirk's @DirkB349973 post mentions $10 a month for Life Insurance is too high.

Hmmm, maybe I should just skip it.

Thanks,

Nicole

G

GAKKIEZAuthor

Conversationalist ⭐⭐⭐

I don't believe it's too late but I'm not an expert on Life Insurance products. You should ask yourself several questions. Why do I need Life Insurance? What are my obligations? What is a realistic amount that I need? I'm sure you may come up with additional questions.

I took out my Life Insurance when I was a single mother of 2 and needed to look out for them. After they left home, I converted that policy to one with a money market account. (Good decision for me. The money market account is now far more than the basic life insurance I took out.)

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