Burial Insurance?

Beware of "Burial insurance" advertisements. Today I received an email with the subject line:  "Get-Low-Cost Burial Insurance: No__Medical Exam."  Here is the text:

"Get $20,000 Burial Insurance for $2.50/Day*
You are eligible for burial insurance. No_medical_Exam required.
Payout is guaranteed
Benefits never go away because of your age or health
Lock in affordable premiums that won't increase as you get older
Pay funeral costs, debts, and leave a legacy for loved ones
We'll help you find a burial insurance policy that works for your budget today!
Get a FREE quote now!"

$2.50 per day? That would be $75/month or over $912 a year! This is a money-making scheme for an insurance company – not a sensible idea for thrifty consumers, especially not for people who have shopped around and learned that they can get a decent burial for far less than $20,000. (That $20K figure is a scare tactic; don't fall for it.)

To set aside money for your final arrangements, contact your bank. You could set up a Toten trust or simply open a new bank account, calling it "Burial fund" or "My burial account," and put money there. You do not need to involve an insurance company.

This year I have received many promotions for "funeral insurance," some called   "Funeral Advantage" and one called "Final Expense Insurance Program."  Caution!  These are various schemes to make money for the promoters or the insurance companies. 


Disclaimer: The views, opinions and positions expressed here in "Sandy's Blog" are written by one individual (volunteer Sandy Ward) and may or may not reflect the views, opinions or positions of the Funeral Consumers Alliance of Western Massachusetts.