Should I try to get cheap life insurance or just get better investment for money? -

Should I try to get cheap life insurance or just get better investment for money?


I am about to turn 65. I want to leave husband money for funeral , plot and headstone if I die first. I have osteoporosis, type two diabetes, diabetic retinopathy. Is it better to spend money on an insurance policy or try to find investments that pay more than we are getting from bank Accounts and CDs?



My parents both prepaid for their cremations. My brother and his wife did the same. His wife passed away and he could have had a service at the facility if he chose to. My folks' plans were about $1,600 each, but they paid for their plans years ago. You don't have to spend a lot of money to have your wishes met. If you want a regular burial, maybe look at prepaying for it now over time.

I'd either invest the money for later or prepay. I wouldn't buy life insurance, per the comments already listed.
Helpful Answer (1)
Reply to blannie

I have  prepaid for plot, funeral and headstone. I actually have my headstone in my friend's garage in WV. All that has to be done is have the date of my death cut in and stone set at appropriate time. I have two lifelong friends (or one their sons) who will do graveside service. My son and his family live over 2000 miles away. My son is my beneficiary on life insurance policies. He can reimburse himself for any expenses for after service dinner etc.
Helpful Answer (0)
Reply to Becky04473

Cheap life insurance generally does not exist for those with pre-existing medical conditions. If you do not fully disclose the conditions the insurance will not pay out. The cheapest would be term insurance, which has not value at the end of the term, if you out live the policy you have no coverage.

Talk with a Financial Advisor who can discuss your options. Before you meet you need to determine how much money you would need in today's dollars. The planner can help you calculate how much you need to put aside each month to meet your goal. If you go this route you could die before enough money has been accumulated.

Another option is to prepay for your funeral. That is fairly common where I live. Seniors pay monthly to the funeral home. You hope to have paid off the funeral before you need it. My mother has done this. You can also buy your plot ahead of time or in your case, you and your dh can buy side by side plots now.
Helpful Answer (0)
Reply to Tothill

At your age, I am guessing you have at least 10 years or more. Would you agree?

If you put away $100 every month into some type of investment that earns an average of 7% interest (after fees), at the end of 10 years, you will have more than $17,000. If you put away $50 a month in the same type of investment, you will have more than $8,000. You will not get this kind of return with a CD or a regular savings account, it will need to be an investment which comes with risk. Depending on your tolerance for risk, you may or may not like to do this.

I suggest you talk to a couple of investment advisors to get more information. If you're in the US, i recommend you go to, then go to Dave Recommends and look under Investing for recommended investment advisors.

Dave Ramsey is a very popular radio talk show host that advises people on saving money and getting out of debt. He only recommends businesses that are reputable and ethical, and which he uses himself.
Helpful Answer (0)
Reply to polarbear

CMagnum ?s are important!
Do you actually have $ to invest and with risk?

Those inexpensive payout (10k-25k) policies that are on TV & tout paying for funeral costs almost always have a period of time before full policy is in force. Couple of folks have posted on this on AC. Theirs were 5 & 7 years. So you would have to live and pay on policy for 5 or 7 full years in order to get the full benefit.

Most folks stop paying before the required 5 or 7 and that’s all profit for the insurer.

If I had to look for insurance with the existing health issues you have, I’d look to get a term policy that is offered through an organization that I do or could belong to. Like a University alumni organization, or a professional associations or even AAA. Some employers have insurers that offer policies to retired employees. These have bigger # of participants so can spread out risk = lower premiums with a better rated company. But realize at your age, every year the premium will go up & significantly. Most small policies do not build up cash reserves, so if you stop paying, it will be all for naught.

Oh also if anyone mentions ability for doing “life settlement”. Imo to get any settlement to be worthwhile you’d need a policy at at least 250k (500k better) and you’d need to be able to sell it as a viatical settlement to an investor. Not the Wentworth types.
Helpful Answer (2)
Reply to igloo572

How much can you risk to invest? How much can you afford to pay for how much coverage? Be careful of buying insurance because it is cheap. Check out the company's reputation for paying out on claims.
Helpful Answer (2)
Reply to cmagnum