Blog Archives for tag funeral expenses
But I Have Whole Life Insurance To Pay For My Funeral…
Why is this NOT a good idea? I recently helped a gentleman who had, in good faith, taken out a whole life insurance policy to pay for his final expenses. So far, he has paid in over $18,000 (yes that is correct!). If he retained the policy, he would be required to pay the rest of his life. At age 81, that could be ten or more years. At $101 per month, or $1,212 per year, several thousand more dollars in premiums could be paid. And, did I mention that since he has paid since 1999, the cash value of the his insurance policy is a whopping $2,100? Additionally, when he dies, the death benefit pay-out is $5,000.
That is the question…..I saw it again this week. A sweet lady mistakenly thought that the only way she could pre-fund her funeral is to make small monthly payments, over a several year period, and pay interest for the “privilege” of setting aside her own money! WRONG! By using a Funeral Trust, you can make small monthly payments, over the number of years you choose, and RECEIVE interest, much like a savings account. You do NOT have to pay interest to a third party for the “privilege” of saving your OWN money for your OWN final arrangements!
“Bless your little pointed head….” my high school Algebra teacher, Mrs. Benedict, said this to me often. I always struggled with math and didn’t like numbers much. But when I began to help clients with their final arrangements – I could easily do the math.