We live in a society that’s concerned about the bottom line. This can be a very good trait when shopping. Whether you’re trying to decrease your grocery costs, save money on gas, or prevent yourself from overspending on your next new car purchase, paying attention to the bottom line can save you money.
Oftentimes, people do this simply by comparing prices for an item. They may pick out the vehicle model they would like to purchase and compare the prices for that model at multiple dealerships or even online.
While comparison shopping is a valuable process, it is also very important to consider other alternatives. For instance, you should compare the price of a new vehicle with the repair costs for your current vehicle. Do your best to eliminate emotions and impulse from your decision making and simply weigh the pros and cons of all your options.
With these ideas in mind, let’s investigate the alternatives to purchasing senior life insurance, specifically burial insurance or final expense insurance. The three most common alternatives to a burial insurance policy are to pay cash for the final expenses, set aside money each month as savings to cover final expenses, or purchase a pre-paid funeral package.
First, let’s take a look at paying cash as an alternative to a senior life insurance policy. This can be a great option, but it assumes that a person has the required sum of money to pay for the final expenses. Since the national average for funeral costs is in the range of $7,000 to $10,000, a person should have at least this amount set aside.
An advantage to this option is that the family left behind would have immediate access to the funds to begin making arrangements for the funeral service. A disadvantage to this option could be a person using the funds to cover an unexpected financial crisis and not being able to replace the funds prior to passing.
The second alternative is to set aside money each month as a savings account. This is another great option as it provides the family with immediate access to the funds upon your passing. The funds could also work for you by earning interest during your life. The disadvantage to consider with this option is that if the funds are not large enough to cover your final expenses, the financial burden will be passed to those left behind.
The third alternative to investigate is what’s known as a pre-paid funeral package. Under this option an individual selects a funeral home and signs a contract to pay set prices for the required services. This option gives the individual the ability to purchase the goods and services at today’s prices as opposed to inflated future prices.
The first disadvantage to this option is if an individual chooses to pay for the package in one lump sum. While the funeral services have been paid for, the money would no longer be available for any unexpected financial crisis. The second disadvantage is if an individual chooses to make monthly payments on the package. If the individual passes away prior to the package being completely paid, the financial burden would then be passed to those left behind.
All three of these alternatives can be very good options. However, it is very important to consider the pros and cons of each prior to making your final decision. If you are unsure of which alternative might be best for you, we always recommend speaking to a trusted adviser. You can also contact one of our insurance professionals at 866-699-1884. We are licensed throughout the country and would be glad to answer any questions or concerns. Let us know how we can help.