BEWARE These 4 Types of Burial Insurance! – Podcast Episode 11

In this podcast, I’m going to be discussing Beware these four types of burial insurance. Let’s get right into this you everybody, if you’ve listened to me at all, you know, number one, it’s going to be guaranteed issue life insurance Beware, beware, guaranteed issue whole life insurance. What that means is, it’s like the policies you see advertised so much on TV, you know, like those, those 990 Something plans or whatever, and you think you’re gonna get a good deal. And, you know, think you’re gonna get 20, 30, 40, $50,000 for 990 something, and then you read the fine print, you find out, ah, it’s got a two year waiting period plan, right, and you go.

Ah, man, I don’t want a policy with the two year waiting period, I want first day coverage. And you find out that, you know, in that little fine print that only blinks on the TV screen for just a moment that it says, you know, limited period or limited benefit period or something like that. Now, what that means is it’s going to have a two year waiting period.

Now, I guess if there’s an advantage of a guaranteed issue life insurance, it’s that it doesn’t ask any health questions. But you know, that’s not to your advantage, really, in most cases, because most people are healthy enough to qualify for what we call first day coverage. That means if your policy were issued and approved and went in force today, and you died tomorrow, the insurance company would have to write a check. A good example is that is maybe you paid a $50 premium today, your policy went in force for 15,000. And you died tomorrow. Just bad luck on the insurance company insured the wrong person. And you die, you just done went and died and they’re gonna have to pay that 15,000.

With a guaranteed issue life insurance, if you did the same thing. And you died, you know, let’s say two years minus one day, I mean, you made it almost the entire two years minus one day and you died, you know, what would happen? No death benefit, they would refund your premium plus a small percentage interest, typically, like 7% 8%, or 10%, something like that.

So yeah, just you know, those those TV commercials and just a lot of companies out there really advertise the Guaranteed Issue whole life insurance, and they say, Hey, you know, it’s easy, no medical exam, no health questions, none of that. But you end up overpaying so much.

So on YouTube, our YouTube channel, we did a series of over 300 videos, and we took male and female. And then we we did it 5010 1520 and 25,000 for for every age 50 to 80. So over 300 videos, and we dissected that and one of those companies was one of that, that 997 company that you always see on TV, right. And yet what we found out pretty much across the board throughout every age and everything it averaged out.

They were on average 200% more expensive, plus or minus, but pretty consistently 200% more expensive. And you had to to your waiting period. And you were going to have to overpay on that policy for the rest of your life. So yeah, man, the pricing is awful and on to your waiting period plans compared to first day coverage.

So if you qualify, get first day coverage, if you’re not sure if you’re qualified, just reach out to us, we can certainly help you out and shop a whole bunch of different insurance companies make sure that you got the best opportunity to get first day coverage. Now the second type of burial insurance to avoid is accidental death.

And boy, you know, accidental death policies are very cheap. Some would say affordable, but I mean, they’re pretty cheap. But the thing is, is they only pay out if you die as a result of an accident. They will not pay out if you die of cancer or a heart attack or any other health or medical reason. You gotta die of an accident. And the reason the policies are so cheap and or affordable, right? Is because the chances of you dying in an accident are very remote. The amount of premium really indicates the amount of risk and if the an accidental insurance policy is super cheap, it means chances are, you’re never going to use it.

So if you were younger, and you were, you know, had a hazardous occupation, or you engaged in hazardous activities, you know, accidental death and not be a bad deal. You know what a lot of truck drivers, you know, big 18 wheelers, accidental death makes a lot for them. They’re, they’re on the road all the time, and accidents happen all the time.

But yeah, when you’re, you know, 60 to 70, to maybe 80 years old, you’re probably not getting crazy, doing crazy stuff out there. And accidents still do happen. But the chance of those policies paying out it’s very remote, most of the accidental policies are going to stop at a specific age to, and, you know, that’s not going to benefit you as well.

Let’s jump to number three, modified whole life insurance. So this is a graded policy. And it’s, it’s actually it’s worse than the Guaranteed Issue whole life insurance, in my opinion, in many cases. Now, a lot of times, what that would mean is that if you died, and to even have anybody recommend this policy, you’d have to be in pretty rough health. And even at that, you’ll find out why we don’t necessarily recommend it.

So what it would possibly do one example is it would pay 30% In the first year, if you passed away from any health or medical reason. So if it’s a $10,000, policy would pay out 3000. In year two, it would pay out 70,000. So, you know, if you died in health or medical reason in year two, and we’re a $10,000 policy payout, 7000. So that’s I mean, you might go well, that’s, that’s better than guaranteed issue, at least I’m getting some money. Yeah, but hold on. So in year three, finally, it would pay 100%.

So it’s essentially in many cases, a three year waiting period plan versus a two year waiting period. And also the modified insurance, because they stretch it out so long. I mean, it’s really significant health issues, and the pricing is punishing, it’s in many cases, so much worse than guaranteed issue, whole life insurance, that you you may just kind of wonder if they even want you to buy the insurance with some insurance company.

So every company has different percentages, every company has different rates. But man modified whole life is, in my opinion, shop around, you know, if you have any doubt about that just reach out to us at funeral funds, we can run rates for you, we can find out about your health and actually find out what you qualify for and 90 to 95% of the time, our clients are calling for first day coverage with any one of our different insurance companies.

Now the fourth type of burial insurance to be aware of is pre need burial insurance. This is the type of policy where you go down to the funeral home. And it’s designed to cover the cost of your funeral expenses. However, there is some some kind of deficiencies, traditionally, with these plans, in many cases, you’re limited to a specific funeral home or a specific, specific service chosen.

And think about that, you know, whenever we get these insurance or these plans in place, none of us wants to use these plans anytime soon. You know, if we could put this off 20 or 30 years, that’s great, you know, we want to live longer. So you know, one of the challenges is, is you know, businesses struggle, sometimes due to the economy or revenue or whatever, and to predict a small funeral home, that they’re going to be in business, you know, decades and decades from now.

Boy, there’s there’s no guarantees, right? So you could invest all that money and have done everything right, and they go out of business and you lose your money. Some of these funeral homes, they, they they invest that money into funds, that company, you know, they get interest on, and that’s how they kind of keep pace with these, these things with inflation.

But it really depends who they’re doing the investing into, because maybe that investment goes back. Maybe, you know, there’s some embezzlement and embezzlement or something like that. So there’s all sorts of things that can go wrong with pre needs. The other thing too, is, you know, what, if you decide to move, and everything’s tied to that funeral home, maybe you move out of state. Now, what are you going to do? Are you going to transport your body back to there, that’s going to be super expensive. So you could you could lose kind of your benefits there as well. And then you know, what, if you’re traveling internationally, now that money is gone.

So in many cases, a lot of people would consider first day coverage, whole life insurance, final expense insurance to be matter. The other thing too is pre made pre need is if you can afford to pay everything all at once, it’s all paid up from the very first day. So that’s a better way to go. But chances are, most people, if they don’t have money to kind of do that, they’re gonna have to make payments on it.

And, you know, it’s not going to pay out the whole funeral until you get all of the pre printed agreement, paid out and worked out. So if they were saying, hey, it’s gonna cost $10,000 And you’re paying $50 a month, that’s going to take a lot of years to pay off.

And the nice thing about burial insurance is it can pay out from the very first day. So if you’re wanting to protect your family, everything’s taken care of from immediately and it just eliminates a lot of worry. So I know this is a short little podcast, but those four types of burial insurance, you should absolutely be aware and be very cautious of.

NOTE: Show notes are AI transcribed, so there may be some spelling or grammatical errors.