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You can tell the difference between a professional insurance advisor and a mere insurance salesman by how they deal with the emotional issue of how to protect a client’s family and loved ones from the cost of final expenses such as funeral home costs and burial expenses. An insurance salesman will be quick to sell you an insurance policy called a final expense plan that is supposedly designed specially for the purpose of paying for final expenses. A professional insurance advisor on the other hand will slow the process down and evaluate whether you even have an insurance need when it comes to covering final expenses. If you do, he will then devise a plan or strategy that includes the most efficient insuring product possible that will ensure that your family and loved ones will have the funds to pay your final expenses when the time comes.
Having a plan in place to cover your final expenses upon death is a good idea. No one wants to burden their family with costs in the neighborhood of $15,000 today or $25,000 ten years from now taking into account inflation. The only question is what is the best way to ensure that the money is there when your family or loved ones need it.
The typical final expense plan or burial plan offered by insurance salesmen is nothing more than an expensive whole life insurance policy. Despite what the likes of AARP might endorse as a good investment for you, there is never a good reason to buy a final expense plan. They are just too expensive. Typical monthly rates for a $25,000 final expense plan are as follows:
| Age |
Female |
Male |
| 65 |
$122 |
$143 |
| 70 |
$162 |
$183 |
| 75 |
$209 |
$232 |
The truth is, you can have twice as much term life insurance ($50,000) if you ask your professional insurance advisor to shop around for you, and you can save the $25,000 you will need for final expenses before the term life policy ever expires. Here are some competitively priced monthly term life rates for a $50,000 policy:
| Age |
Female |
Male |
| 65 |
$22 |
$32 |
| 70 |
$33 |
$54 |
| 75 |
$58 |
$86 |
If you follow the time proven truth of “buying term and saving the difference” you will have your final expenses covered from day one and you will save anywhere from five to ten times over the cost of a whole life final expense insurance policy which over the life of the policy will cost anywhere from $30,000 to $35,000. Further, you will reap the benefit of earning interest on the $25,000 that you saved over your remaining life time anywhere from $4,000 to $25,000. In total, by getting term life and saving the difference, your family will have anywhere from $29,000 to $50,000 in hand when you die and with no need to wait for an insurance company to issue a check.
To let us help you make the best choice please contact us.
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