Wednesday, July 23, 2014

Life Insurance is a must have

Final expense insurance is life insurance with a specific need. Final expenses largely make up funeral expenses. Your funeral is the very last expense you will incur. Having the money readily available to your family is part of estate planning. Final expense programs are estate planning.

Today you are in the best of health you will be. Purchasing now will qualify you for the best rate available at your current age. Life insurance is the least expensive insurance and offers the most value added benefit. If you are on a fixed income, chances are your beneficiary is too. Life insurance is protecting the beneficiary from financial catastrophe.

Life insurance is different than pre-need plans offered by funeral homes. Case scenario:  you purchase a life insurance policy with a face value of $10,000.  After only 1 premium payment, you become a victim of a fatal car accident or suffer a fatal cardiac arrest. The full value of $10,000 is available immediately to your beneficiary. The policy you took out in your estate planning is ready to be put to work. You have protected your beneficiary from facing a financial crisis.

Now, lets look at a pre-need plan. During your meeting with your funeral director he sells you a $10,000 pre-need plan with a monthly premium of for example, $54.00. After only 1 premium payment you become a victim in a fatal car accident or suffer a sudden cardiac arrest. Your beneficiary is now responsible for paying $9,946.00 plus any and all accrued interest. Funeral homes are in the business to make money. They provide a service for a fee paid by you, the consumer. They will demand payment or provide a less desirable and cheapest funeral with whatever funds you can spare. If your family is cash strapped, where will that money come from? If you have outstanding bills that need to be paid, where will your beneficiary get that money? You have created a full financial crisis for your loved ones that they may never financially recover from. 

Procrastinating just adds to higher premium payments and not being prepared. Death does not wait. It is going to happen.  Funeral expenses are at an all time high and are expected to increase. Say you have enough money in the bank to cover a $10,000 funeral bill. In the interim, you suffer from a debilitating car accident or a mild heart attack. Your major medical insurance will pay the doctor and hospital, but you will have co-pays, prescription, fuel and household bills to pay. If you are on a limited income, you will burn through that $10,000 bank account. Leaving you with not enough money to pay funeral expenses when the time comes. By proscratinating, you have gained nothing. 

Estate planning is simple and easy to do. Just take the time and do it.

Good health,
Trisha M. Pacenti RN,BSN

Monday, July 7, 2014

Insurance has a place in life

Why have it?  If you have a family who depends on your paycheck for financial survival, then that is the foremost reason why you should have it. You are protecting your family's financial health after your death. The life insurance proceeds are transferred to your family tax free. The life insurance company you don't like and complain about will suddenly be loved once your family receives their check upon your death.

Your family will be able to pay death related expenses in addition to current and future bills. Life insurance allows you to invest in protection for very little cost. It is the least expensive, value added insurance available. There is no one reason for anyone to go without it. Premiums are low cost and those on a fixed budget can afford it. 

Who else should have it? Anyone who is breathing. The need for life insurance is there. Someone will be burdened by the cost of your death. Having a life policy in place, even a low face amount just to cover death related expenses, is sufficient. The time to buy a life policy is now. Today is the youngest and healthiest you will be. Locking in premiums at your current age and before your next birthday, will ensure you are getting the lowest price possible.

The age of discussing death as a taboo topic is over. Procrastinating and denying own mortality is costly to everyone. By failing to prepare you a preparing to fail.

Good health,
Trisha M. Pacenti RN,BSN