Monday, December 5, 2011

Final Expense Insurance X Pre paid Funeral Plan

Go ahead and plan your funeral, but think twice before paying in advance. You risk losing everything if the funeral home goes out of business. Instead, keep your money in a pay-on-death account at your bank  or even better get a Funeral Life Insurance.


Pre paid Funeral Plan: Why not to buy it

Why give these funeral homes your money, years in advance to pay for your funeral? Would you pay for a car today, only to pick it up 10 years from now? Go figure.  

Who is going to pay for the cost of inflation , the family or the funeral home? Let’s say you arer 65 and you live another 20 years, is the funeral home going to take into consideration the rise of goods and services over the next 20 years, or is your family going to have to pay the difference when you pass away? These are questions that need to be answered.

Another problem is bankruptcies. There was a large conglomerate several years ago that bought out a large cemetery/funeral home in a large American city. All of the prepaid funeral plans were to be transferred to the new company. Problems arose when the large corporate conglomerate, went bankrupt. Many people lost all their money for prepaid plans in this scenario.

Even though a local funeral home may be family owned, been in business for many years etc. There is always a time where the owners may consider a sale. You just never know. 

That is why,  the prepaid plan is not the best option for funding a funeral. Some may disagree, but better things can be done with your money instead of giving it to a company years before you need it. Consider, would you ever pay for a car, house, ANYTHING, 10 years or more in advance before you need it? I DON’T THINK SO! 


Here are 3 better options of what you can use your money for instead of a prepaid funeral plan.
  1. Invest your money in a money market, CD or some other “safe” account where you can gain some interest.
  2. Buy a Final Expense Insurance policy and take the risk and put it on the insurance company
  3. Gift the money to family members to pay for college etc, and use the Final expense policy to fund the funeral 
  4. Get a free Final Expense Insurance Quote:http://www.mintcofinancial.com/life-insurance-quote.asp
 

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