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A Pre-Paid Funeral Plan is not your best choice for final expenses.

A Prepaid Funeral Plan is not your best choice for final expenses.

A Prepaid Funeral Plan :One of the most stressful situations in life is the death of a loved one. No one likes to think or talk about death, let alone plan for it. Under duress, bad decisions are common, potentially resulting in costly decisions. Smart consumers use life insurance for their funeral plans. Planning ahead with life insurance for your final expenses is a very easy insurance solution. Most pre-paid funeral plans are usually sort of life insurance, but most are not aware of this. Here are a few reasons why life insurance is the way to go when creating your funeral plan.

Final expense life insurance compared to funeral planA final expense life insurance policy sold by companies like Kotak Life Insurance or Banner Life Insurance is just a candy wrapper for permanent life insurance, meaning that you are covered for life. Life insurance provides your loved ones the means to cover all of your final expenses and leaves them with money to inherit, TAX-FREE. With life insurance, there are no restrictions on how to use the money. The insured designates a beneficiary whether it’s a spouse, child, or parent. However, a funeral plan can only be used on a loved one’s a Pre-Paid Funeral Plan expense at the specific funeral home the plan was purchased at. The deceased loved ones are not receiving a benefit like cash from a life insurance policy.  When deciding between life insurance or a funeral plan, the decision should be an easy one, everyone would choose to leave their loved ones extra money above the cost of a Pre-Paid Funeral plan using some sort of senior life insurance. Another question to ask yourself is this; have your parents planned for their burial costs? We have someone who can help answer any questions you have concerning this matter, and to help them find the coverage they deserve.

Advantages of buying life insurance over funeral plan: The biggest advantage to buying life insurance is the extra money. Not only are you able to provide your family with the necessary funds to cover your funeral expenses, but you also are able to leave loved ones with extra money to live on. Secondly, a life insurance policy provides your family with one lump sum check of tax-free money! Life insurance is usually more affordable than a prepaid plan, especially if you’re in good health. Finally, there are a variety of flexible payment options associated with life insurance compared to a prepaid funeral plan. Each life insurance policy is tailored for the insured and therefore provides options like multiple beneficiaries and flexible amounts of coverage rather than only getting the same few choices as everyone else at a funeral home. If you have certain health conditions and wondering if you can qualify for affordable life insurance for diabetics or life insurance with high blood pressure, we can help. Let us answer your questions and help you find the coverage you deserve.

Disadvantages of Prepaid Funeral Plan: The most important disadvantage of buying a prepaid funeral plan is that you HAVE to use the money on the funeral because you are paying the funeral home. This goes hand in hand with another big concern, which is if you move out of state. Funeral homes often times will not refund you the money spent on a plan, so instead of buying an insurance solution to allow your family to pay for your funeral, you simply lose your money invested or force your family to pay even more burial costs for transportation. The final problem associated with a burial policy is as many people start to get older, they change their mind on being buried and often times want to be cremated out to sea. Just like you if want to switch funeral homes, you usually can’t get all of your money back. There are too many unexpected things that could happen in the future to rely solely on a prepaid funeral plan.

A Pre-Paid Funeral Plan plans are very important for every family to protect their future. There are many options to help plan for a funeral. Many consumers assume that funeral home prepaid plans provide the best answer and therefore never even consider looking at life insurance over 50. Funeral homes provide a necessary service, and you can pay them for that service using the proceeds from your life insurance. Pre-paid plans lock you into doing business with one funeral home that might not even be in business in ten or twenty years. Using life insurance for your funeral plans provides flexibility as to who has control of your money, what, where, and when the money is used and provides potential income above and beyond the cost of death.

Sam Goldsmith

Sam Goldsmith is the principal broker of Goldsmith Insurance Agency, an independent life insurance agency in Denver. He has helped thousands of consumers all over the country—including diabetics—find affordable life insurance with the best-rated companies. He can be contacted at 877-400-0484 or through his website at www.goldsmithinsurance.com.