5th Common Mistake Burial Insurance Buyers Make

Buy the wrong type of insurance for this purpose: Term Life Insurance

Whenever somebody buys a financial instrument like burial insurance or any other insurance or financial tool one of the first questions that one needs to determine is what is the purpose.

There is a time and a place for term insurance. For example if somebody has  20 years left on their mortgage payments. And let’s say for example they owe the bank $200,000. It may be a good idea depending on the situation to get $200,000 of term life insurance in the event that something happened to one of the Breadwinners or one of the members of the household that the house would be paid off. (there is a product out there called mortgage protection. And sometimes that product goes down and the amount it is ensuring so in your one that may be ensuring 200,000 you’re too and maybe ensuring 190000 year 3 maybe ensuring 175,000 based on the payments that one makes. this too is a type of term life insurance)

 but what I would not consider unnecessarily good idea is to buy term insurance and count on that amount solely for final expense. Simply because you don’t know when your time will come. And your family is going to count on that to take care of your final expenses. Somebody who’s age 4445 who decides to get term life to cover their final expenses because they find it to be a lot more economical. Well, it’s not going to be economical when that term expires before the policy owner dies. 

so yes, it could be that if somebody gets a number of different policies for example we were using the person is age 45. They may get a certain amount of term life insurance to cover various different needs because because it is certainly the more it can omnikal life insurance option. But that  term policy should not be in lieu of getting or instead of getting a whole life burial or final expense policy. 

Simply put, you want to make sure that that policy is in force whenever it is that your time comps. And there’s no guarantee with term life. But there is a guarantee with whole life back burial and final expense insurance.

 Now I used a very specific term burial insurance backed by whole life, because many of us have seen the ads in the paper on TV, or that have come in VIA mail get a final expense policy with $1. and I haven’t seen them all. But the ones that I have seen anecdotally, have been backed by term life. Which means that at some point at least the ones that I’ve seen expire at age 75 or age 80. Or 10 years into the term of the policy at which point to keep the policy going the number of could change dramatically from a dollar to $200.

 I share these common mistakes with you not to dissuade you from getting burial or final expense insurance, but rather to educate you and save you the heartache the experience.

Bottom line: Ask good questions and get yourself a policy today.