# Final Expense Insurance



## GreenSky (Aug 1, 2019)

Agencies call me all the time and tell me they can help me sell this but I refuse.  I've never seen the value of such a high priced life insurance plan.

I'm wondering if anyone else thinks it's a good buy.  It's always advertised on TV.

Rick


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## JaniceM (Aug 2, 2019)

If you don't mind a bit of advice:  read the fine print before making a decision.  Many insurance policies do not pay if the person dies within 2 years.  All the beneficiaries receive is the amount the policy-owner paid in premiums.


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## GreenSky (Aug 2, 2019)

JaniceM said:


> If you don't mind a bit of advice:  read the fine print before making a decision.  Many insurance policies do not pay if the person dies within 2 years.  All the beneficiaries receive is the amount the policy-owner paid in premiums.



That's VERY good advice.  The policy offers on TV are generally just that.  There is a 2 year waiting period before benefits are paid.

There are ways to multiply your savings without dipping into your pocket but I've yet to find an insurance agent to offer alternatives to a high priced/low benefit policy.

Rick


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## Don M. (Aug 2, 2019)

A total waste of money for most people....kind of like buying life insurance when you are 70.


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## GreenSky (Aug 2, 2019)

Don M. said:


> A total waste of money for most people....kind of like buying life insurance when you are 70.


People tend to buy it to pay for funeral costs.  If you're that broke prepaid cremation is under $1,500.  

You and I are on the same page.

Rick


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## OneEyedDiva (Aug 4, 2019)

I've always been leery about those types of offers. Since I don't need them so never delved into the particulars. I did see somewhere that there's a two year waiting period though.


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## johndoe (Aug 4, 2019)

Why should you care about final expense if you are dead?


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## Marie5656 (Aug 4, 2019)

*I plan to prepay for my own cremation.  I really do not want or need any sort of memorial service.  And if, for some reason the cost has gone up, I have enough money to pay the difference.*


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## GreenSky (Aug 4, 2019)

johndoe said:


> Why should you care about final expense if you are dead?


That's actually an interesting question.  From what I understand people buy this mainly for funeral costs so they don't burden their family.  But I've always suggested there are better ways than buying high priced life insurance.

As far as final expenses, I have the same question. If I have (for example) $10,000 in credit card debts would my heirs be responsible for paying them?

I have a client that refused to touch $20,000 in savings because she wants it used for her burial. I don't want to be accused of selling something but I show her how to take $15,000 and turn it into a $25,000 benefit so she could free up $5,000. She used it to take her family on a vacation.

But so many agents would sell her expensive life insurance.  Turns my stomach and really makes the industry look bad.

Rick


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## Marie5656 (Aug 4, 2019)

GreenSky said:


> As far as final expenses, I have the same question. If I have (for example) $10,000 in credit card debts would my heirs be responsible for paying them?



My understanding is, if your name is not on the debt (ie credit card) you are not responsible.  The debtor will write it off.  Got this info from two lawyers, independent of each other.
That being said, I understand "final expenses" means funeral costs.  Again, from my recent experience, if there is money enough in the estate (not counting life insurance or any beneficiary account) then the estate will either pay, or reimburse who did pay, BEFORE any other bills are paid.  If after administrative fees and funeral costs are paid, then others can be paid.  But, this is in New York, I cannot speak for other states or other countries.


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