Can anybody recommend cheap death benefit insurance?
Posted on November 10th, 2008 in Burial Insurance
Tony and Mary asked:
My wife and I want to buy small life insurance policies on our mom’s - enough for burial, maybe $5 - $6K…they are both in their mid-50’s and are both smokers.
My wife and I want to buy small life insurance policies on our mom’s - enough for burial, maybe $5 - $6K…they are both in their mid-50’s and are both smokers.
Can anybody recommend a place to get a quote? Thanks
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Tags: Benefit Insurance, Mom
This post has 8 comments
November 13th, 2008
no whole life. go with term its cheap, but when the term ends, ie, 10 20 30 years or so the insurance is gone, and no money, or there is term with return of premium, you get all your money back you paid in over the years it cost more but is so worth it.
November 14th, 2008
just cheaper
November 17th, 2008
Define cheap.
Call your homeowners agent, likely they can sell you the life insurance policy.
You’d probably be better off with a term policy, it would get you A LOT more coverage, MUCH cheaper. Also, considering the rates, if they hang in there 10 years, it’s likely that insurance is going to cost you more than paying out $5k out of pocket for the funeral.
And of course, you need them to sign off on the policies.
November 17th, 2008
It’s unbelievable the irresponsible garbage I read on these boards from “veteran” agents. You want a policy that will definitely be in place when they pass away; correct?
If that’s the case, permanent coverage is the ONLY option. Term coverage will likely be cost prohibitive in later years; and most won’t even offer coverage beyond age 80.
I think some folks need their licenses yanked!
November 20th, 2008
You want increasing benefit policies if they aren’t terminally ill. Good companies would be Forethought, Homesteaders, etc.
Check through any local funeral home to see what they offer. I would try to pay them in full within 5-years or less if possible. And if they are in good health, ask about preferred rates.
November 24th, 2008
Check Physicians Mutual Life Insurance, but I have found that if you wait late in life to get insurance, it is pretty costly anywhere.
November 26th, 2008
I recommend a 10 year term insurance with $20,000 coverage for both mom’s. It would cost you around $28/month. At the same time, I would invest $100/month for the next 10 years. At a 10% rate of return, you can have almost $20,655 in 10 years won’t need life insurance on your moms anymore. How to get 10%? Check out some mutual fund companies such as Legg Mason Partners, Fidelity, Van Kampen, and so on.
So in all, if you buy term and invest the difference, you would be investing a total of $128/month to protect your moms. If this was whole life, it would be over $400/month.
November 29th, 2008
First of all, You need to recognize that the cost for Funeral arrangements is a lot more than you will expect. I would guess that the costs are around $12,000 to $15,000, and that’s for a basic funeral, no bells and whistles. So you need to make sure that you are fully prepared. Term insurance is a great way to go. You can get great coverage for a reasonable premium. Primerica has a great product with a living benefit attached to it. if one of your mothers was to become terminally ill, they are given 40% of the coverage in cash to use while they are still alive. This could greatly increase the quality of there lives while going through the terminal illness. Look into it!
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