life/funeral insurance?

Question

looking for the cheapest insurance to cover funeral expenses..i'm 50 yrs old....confused by all the options,,can anyone give me a simpe answer..

Answer 1

You need Whole of Life Insurance (term assurance is no good to you - you may die outside of the term).



You can get unit-linked or guaranteed WOL policies. Guaranteed policies are usually a bit more expensive, unit-linked policies are NOT savings but the lower premiums depend on the fund performing in line with the original expectations.



It's usually better to write WOL in a trust to make sure that there's no Inheritance Tax payable and to male sure that the proceeds get paid out quickly and avoid your estate and probate.



An Independent Financial Advisor will easily help.



Alternatively, you could look at someone like Sun Life for guaranteed over-50's cover or a funeral plan from someone like Co-Operative funeral directors.



Edit;



Ignore the comment from src50. WOL is AN answer. Whether it is the most economical depends on how much cover you need etc, which is why I suggested a number of solutions as opposed to dismissing everything bar one.



Thank you Dan B. I was working on the assumption that the so-called insurance brokers posting on this thread knew that funeral plans were also WOL policies.



Car253 - you may be honest, and I hope you're not suggesting that I, or anyone else isn't, but you are wrong in this case. Term assurance is clearly inappropriate for funeral cost planning! What happens if the life assured lives for 31 years? Good luck with justifying your 'honest' advice in court.



Whether it's a unit-linked, guaranteed or funeral plan, WOL is the ONLY solution. No-one knows when they are going to die, so how can you recommend a term?

Answer 2

Pre-paid funeral plans are whole life insurance policies! The funeral home is the beneficiary. You would be better off buying a whole life policy for yourself and reap the benefits should you not need the policy after all.



Other problems with pre-paid arrangements that you have no control over:



1. If the chosen casket is no longer available, your next of kin could be obligated to pay extra for a substitute casket

2. The funeral director can cite inflation beyond expectations and demand a supplemental payment. Protect your loved ones by getting a price guarantee in our contract.

3. Monies used for pre-paid funerals are generally not regulated or guaranteed by any state laws. A funeral director can take the money and run. You wouldn't know it until the day of need. Don't tell me all funeral directors are honest.

4. The funeral home is the beneficiary of the policy regardless of the cash value, dividends or other moneys earned.

Answer 3

SR50 is correct.



Whole life at your age is too expensive. Getting a level term policy with level premiums for 30 years would be best. But, even that may be too expensive.



Your best bet is to start paying on some pre-paid funeral arrangements. Don't waste your money on life insurance. Many agents will take your money and its a waste of money in your case.

Answer 4

If funeral expenses are your only concern, the most economical solution is to purchase a prepaid plan. Whole life insurance is NOT the answer.