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Should I Buy a Burial Policy?

2011 July 1

Term life insurance really should not be used as a burial or final expense type of plan. Since the term period can expire prior to the death of the insured it is not a viable method to plan for final expenses.  The strategy of buying term life insurance is to simultaneously pay down debt and grow your savings and investments so when the term expires you no longer need life insurance. Dave also advises against purchasing life insurance for the sole purpose of covering final expenses, since in most cases it should be paid from your emergency fund and/or savings. However, in some extreme cases, you may want to consider a plan through Senior Legacy Insurance, which sells burial type policies. While Dave does not usually recommend these since they are cash value type plans, they may be the only way to address this type of issue if you are dealing with an older individual whose financial situation does not allow for any other approach. See answers to more frequently asked questions about term life insurance.

3 Responses leave one →
  1. E. Weaver permalink
    October 30, 2012

    Thank you for the info. I will check with Colonial Penn but I do not trust AARP for I don’t feel they really help Senior citizens. But thanks for replying in a timely manner

  2. shirley segler permalink
    November 19, 2012

    THANK YOU FOR YOUR ADVICE. I WOULD LIKE TO KNOW WHAT YOU THINK ABOUT GUARANTED WHOLE LIFE PLAN FROM GERBER? THEY HAVE PLANS FROM3000- 15000 THAT SOUNDS LIKE WE COULD AFFORD.

  3. zanderins permalink*
    November 20, 2012

    I have noted another link on this blog with addresses the question of having Life Insurance for children. The short answer is donlt do it. There just are so many better things to do with your money. See: http://18.218.141.96/2011/06/q-should-i-have-life-insurance-on-my-children/

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