Q: Should I Buy A Burial Policy?
Term life insurance really should not be used as a burial or final expense type of plan. Since the term period can expire prior to the death of the insured it is not a viable method to plan for final expenses. The strategy of buying term life insurance is to simultaneously pay down debt and grow your savings and investments so when the term expires you no longer need life insurance. Dave does not recommend purchasing life insurance for just final expenses since in most cases he feels it should be paid from your emergency fund and/or savings. However, in some extreme case you may want to consider plans through the AARP or Colonial Penn which sell burial type policies. Dave does not recommend these since they are cash value type plans but they may be the only way to address this type of issue if you are dealing with an older individual and their personal financial situation does not allow for any other approach.