I am retired and without debt. Which would be a better investment - life insurance or a prepaid funeral arrangement?
Answers | 2
Do you have enough money to pay for your funeral? If you do, then you don't actually need life insurance. If you don't then you might. If you prepay your funeral arrangement, the details will be taken care of. If you buy life insurance, there is a lump sum of money, but life insurance contracts are not written to accomplish burial, with all the details that go with that. You used the word "investment" which implies that there will be a return on the investment: what kind of return are you looking for, a lump sum that goes to your beneficiary or a burial arrangement that makes it easier for them to put you to rest?
I have not compared the two offerings technically, financially. But I will say this, having buried my own father and other family members: It will be a real gift to your family members if you already have thought through the details of your burial. I don't think that means you have to technically purchase the funeral in advance. But, taking the time to make the selections and provide the instructions, that would be a great thing to do for your family. I guess what I am saying is that even if you choose to just buy a life insurance policy to provide the liquidity to pay for final expenses, you should still take the time to shop for what you want, ahead of time, and provide that list of selections to someone. Or perhaps just slip them inside the front cover of your life insurance policy, if you choose to buy one. Good luck!