1. Who will get the prize? Get out a small scratch piece of paper….. What is the average cost of a funeral? Whoever guesses closest will win a piece of candy! $6,560

2. Funeral Costs fee for the funeral director’s services: $1,500 cost for a casket: $2,300 embalming: $500 cost for using the funeral home for the actual funeral service: $500 cost of a grave site: $1,000 cost to dig the grave: $600 cost of a grave liner or outer burial container: $1,000 cost of a headstone: $1,500

3. Life Insurance

4. Purposes of Life Insurance Cover funeral expenses Replace lost income

5. Important Terms Beneficiary – The person who receives the money when someone dies Coverage – How much the person’s insurance is worth How much the beneficiary receives upon the death of the insured person

6. Types of Life Insurance Term Insurance – Insurance protection only for a specific period of time – Low cost premiums – Must be renewed at the end of each term if you want to keep the coverage – Premiums almost always go up Permanent Insurance – Protects a person for their whole life – Higher premiums – Premiums usually never change

7. Factors Affecting the Cost Health – Poor health = higher premiums – Smokers = higher premiums Family Health History – History of health issues = higher premiums Occupation/Hobbies – More dangerous activities = higher premiums Gender – Women have lower premiums than men Age – Older = higher premiums

8. Quick Review 1.What are two reasons why people buy life insurance coverage? 2.What is a beneficiary? 3.What is the difference between term and permanent life insurance? 4.What factors will increase your premiums? Replace income loss, cover funeral expenses Someone who receives the life insurance money Term is only for a specified time period; permanent is for your whole life Poor health, bad family health history, dangerous occupation, male, older age