David Lerner Associates: Funeral Insurance May Be Necessary, But Watch Out for Scams
Funeral insurance is a way to spare your loved ones the financial burden of needing to pay for your final expenses. Not all funeral insurance policies are identical. Different varieties of funeral insurance are available, and policies can differ greatly. Generally, they work by your buying a policy that will cover your final expenses, typically a few thousand dollars. You pay the premiums (either in a lump sum or spread out over a specific number of years), and when you pass away, the death benefit is utilized to pay for your funeral.
Funeral insurance policies are often offered through a funeral director serving as an agent on behalf of an insurance company. Some of the larger national funeral home chains are beginning to sell funeral insurance.
If you're worried that funds will not be available to pay for your funeral costs or that these costs would be a substantial concern to your family, a funeral insurance policy could be appropriate for you. Before you decide, explore the possibility of purchasing a small term life insurance policy as an alternative. If you have adequate assets to pay for your own funeral, you most likely don't need funeral insurance.
Presently, there is no federal law regulating funeral insurance, and state regulations can vary. And many individuals-- particularly the elderly-- have been taken advantage of by funeral insurance scams. As a result, it may be smart to speak with a professional advisor to discover if funeral insurance suits your overall estate plan.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.
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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 1-800-367-3000 Visit our website: http://www.davidlerner.com