Presentation on theme: "Life Insurance & Funerals. What and Why? Life Insurance- Recommended for anyone with dependents. Like any insurance, it is a GAMBLE- both on the part."— Presentation transcript:
What and Why? Life Insurance- Recommended for anyone with dependents. Like any insurance, it is a GAMBLE- both on the part of the insurance company and the policyholder. The cost depends on the age of the policyholder. The younger and longer they are expected to live, the lower the cost. There are two main types of life insurance: –Term and whole life
Term Insurance Simplest types Provides financial protection only Temporary, only runs for a specific time If the policyholder dies within the specific time that the policy runs, then the beneficiaries receive the value of the policy. The major advantage is low rates for young families who generally need the protection most. As you get older, the rates rise.
Permanent Life Insurance More commonly known as “whole life” or “universal life.” May be kept for a lifetime These policies double as a savings account, building up cash value The cost is higher than for term insurance The cost generally remains the same regardless of how old you are.
A Few Things to Note about Life Insurance… You can name more than one beneficiary in whatever amount you choose. Charities can be beneficiaries Life insurance is not for you…it is for those you leave behind –Sometimes an expensive, but generous gift
Funerals and Memorials Why funerals or memorials? –These customizations are as old as, and date back as far as, the beginning of civilization –Every culture and civilization attends to the proper care of their dead. Every culture and civilization ever studied has three things in common relating to death and the disposition of the dead Some type of funeral rites, rituals, and ceremonies A sacred place for the dead Memorialization of the dead
Funerals and Memorials (Cont’d) Most civilizations have funerals or memorials for one or more of the following reasons: –Fear They want to dispose of the dead properly so that nothing “bad” happens in the afterlife or to the living –Religion Religious documents demand, or highly recommend
Funerals and Memorials (Cont’d) All cultures and civilizations have unique burial procedures: –Mongolia- Air sacrifice –Tibet- Sky burial –Haida- Pit burial –Bali- Fire burial –Southeast Asia- Spirit offerings –Maasai Tribe- Predator burial –Kiribati- Skull burial –http://www.bravenewtraveler.com/2008/06/25/10- extraordinary-burial-ceremonies-from-around-the- world/http://www.bravenewtraveler.com/2008/06/25/10- extraordinary-burial-ceremonies-from-around-the- world/
The Cost of Funerals One reason that people purchase life insurance is to pay for their “final expenses,” which include any debts that they owe and their funeral or burial expenses. The average funeral in the United States cost $6500.00. Funerals can easily reach $10,000.00. In order to avoid going in debt over a funeral or burial for a loved one, consider the following: –Plan ahead –Know your rights –Shop around –Choose “direct cremation” –Select the simplest casket –Create your own memorial –Donate to science –http://articles.moneycentral.msn.com/RetirementandWills/PlanYourEstat e/HowToPlanAFuneral.aspxhttp://articles.moneycentral.msn.com/RetirementandWills/PlanYourEstat e/HowToPlanAFuneral.aspx
Why do Funerals Cost so Much? Here's one example: Professional and administrative services –Embalming, funeral home staff during the visitation, and so on... $1,650 Facilities and equipment –Preparation room, visitation room, reception room, chapel... $850 Transportation ( –Transfer from the place of death, funeral limousine, and cars for the family... $450 Merchandise –Casket, vault, prayer cards, temporary grave marker... $2,515 Cash disbursements –Flowers, cemetery plot, obituary, death certificates, honorariums, headstone... $1,828 Total (not including taxes)... $7,293 PLUS, any “extra costs” –The "extra costs" include all the items that are not directly related to the costs of burial or cremation. –For instance, the cost of flowers, the obituary, honorariums, guest books, and so on. These costs may be listed under headings such as "cash advances" or "cash disbursements" or "stationery."