[USER]

This might sound strange but im interested in purchasing life insurance policies for multple family members (just enough coverage for funeral/final expenses). Any suggestions?

My more responsibile family members and i were discussing doing this so we would be covered just in case.

Is there any time of group policy that covers multiple people that are not immediate family members?

I come from a very poor family and didn’t learn about managing money until I was much older.

We had a recent emergency where a family member passed away unexpectedly and we were unable to locate the small life ins/burial policy that was purchased many many years ago (30 yrs or so).

All of us had to scrape together enough money for funeral expenses and im very worried about this happening again. (We went as cheap as we could, nothing fancy).

We called the insurance company where the burial policies were purchased from and they were unable to pull anything up by name….. but were able to find the policies for the handful of ones we had copies of.

I guess the policies were so old that they could only be located if uoy had the policy number.

My grandmother had purchased small basic burial policies maybe 30 yrs ago for all her children and grandchildren she had at the time.

I’m now in a much better financial situation that most everyone in my family but I don’t want to bleed my bank account dry if another unexpected situation comes up.

[Anca]

Dave Ramsey had a call a few years back about an older gentleman who took out an insurance policy on his son-in-law in case the SIL was to pass away, then the wife (his daughter) would get the $$.

The dad paid for it himself, and he did that because his daughter was a SAHM. He felt she shouldn’t have to worry about $$ if she were to be a widow and raising small children.

So you could call an insurance company and ask about.

And you and the other family member who are better off could pitch in to pay for it.

[Farnaz]

Do you know if those policies were paid for? Or could they have lapsed?
As for current policies, there are several ways or rather options. There are insurance policies called final expense policies which are designed for funerals and services.

You could also purchase a term policy. These are generally low cost policies which last for a certain period of time.

Some of these policies also come with living benefits which would pay for cost of care under certain circumstances. Another option would be a permanent life policy.

Some are joint which means a husband and wife can sign up for it together. Some offer children riders as well.

Depending on your financial situation, location, health and needs you can use one or a combination of these policies and or riders.

I’d be happy to go into more details and answer your specific questions.

[Ralph]

The wife and I just bought our plots. It was 7K for both of us. We will be cremated so no coffin costs etc.

One can even prepay funeral costs etc if you wanted. So, let’s say 12K all in.

That could be cheaper than paying a small life insurance policy for many years.

My dad had a small 5K insurance policy that he had for funeral expenses, but he paid like 14K for the policy over the time he had it.

[Jason]

A guiding rule of thumb: Understand that insurance is a profit-seeking business supported by math.

To avoid padding someone else’s profits unnecessarily, only buy insurance for financial risks that you cannot afford to bear.

Put more simply: No one wants to lose a family member (emotionally).

But (financially) you only buy insurance if that loss would wreck you financially (e.g. a breadwinner dies and leaves a family without income).

[Alfredo]

You can get a life insurance policy on an individual, joint life (a married couple), or get an individual with spousal and/or child rider.

The roi on the child rider can change depending on how many kids as the child rider is the same price for 1 or multiple childen and then the rider stops at 18-25yo, depending on carrier.

Final expense policies are good to get later in someone’s life (50+), but it can end up costing more in the end if the insured lives long.

There are also ways to structure a permanent LI policy to equate to a “lifetime” term policy. For a group of multiple people, there are a handful of different approaches to get the lowest premium for the most value.

I’m a life and health licensed broker for 7 yrs. If you’re interested, I can have one of my agents walk you through options and explain different scenario illustrations to compare different carriers with the different riders/features that appeal to you.

Educational, no fee consultation. We’re in all 50 states.

[Author]

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