Life Insurance Vs. Pre-Need Funeral Insurance - What's Best?

greetings and salutations this is David

do for debt buy life insurance for

burial com where I help people like you

get affordable final expense life

insurance to pay for funeral cost and in

today's topic we are going to be

discussing the difference between life

insurance and pre-need funeral insurance

to hopefully help you determine what's

best for you so most likely the reason

you're watching this is because you have

reached a point in your life where

you're concerned about taking care of

funeral related expenses they could be

related to burial or cremation and

you're looking at the possibility of

purchasing some sort of insurance

program whether at the funeral home

or through a regular life insurance

policy you want to know what maybe the

difference is and what would suit you

best so if that describes you then

you're gonna find that this educational

material will be perfect for you because

what the goal is today is to present to

you differences and better explain how

they work so you can better understand

if one of these particular solutions is

right for you so let's get started so my

name is David du Ford I am the owner and

founder of buy life insurance for burial

again I help people across the nation

with their life insurance needs

especially related to final expense life

insurance and what we're gonna do today

is give you a little bit overview of

what to expect first of all we're going

to define the difference between what is

life insurance the difference between

funeral or pre-need life insurance and

what both of these particular plans pay

for then we're going to talk about life

insurance for final expenses and the

pros and cons same thing for pre-need

insurance the pros and cons as well and

then we're gonna do a cost comparison

I'm going to show you some an idea of

where pre-need price points are and as

well as what you get in return for

purchasing then we're going to talk

about the same thing as it relates to

life insurance options for final

expenses and as well as premiums you pay

then we're going to show you the

differences and qualification processes

for both products it's pretty important

to discuss then I'm going to give you my

final thoughts as well as next steps

that you can take so my name is David du

Ford I am the owner and founder of buy

life insurance for burial calm I have

been licensed as a life insurance agent

since the year 2011 also have hell

over 3,000 families with their life

insurance needs since I started I'm also

a published author of the you can see

down there in the corner the official

guide to buying final expense insurance

it's a short pamphlet to help people

understand the different options out

there and to assist them making the

right decision in addition all this I

also recruit and train agents and help

them understand how final expense life

insurance works so that they can help

people in their own community with the

same kind of questions that you have but

on a face to face basis and last but not

least I'm married have four children

with my newest one on the way as of the

recording of this video so let's talk

about what life insurance does and what

it pays for life insurance simply can be

defined as a cash payout payable upon

the death of the insured so the question

is well why would someone need money

when someone dies pretty simple there

are several reasons first of all it's

used to provide an ample supply money in

the unsaved and untimely death so for

example there's lots of reasons life

insurance is used one reason is to pay

down a mortgage when someone untimely

passes away so for example if the

breadwinner and the family dies

unexpectedly and someone owes and they

owe with a hundred thousand dollars on a

mortgage this life insurance plan comes

to life pays a death claim and that

mortgage is paid off entirely so the

surviving spouse and children don't have

to stress about how the bills going to

be made when the breadwinner is gone can

also be used as an income supplement or

income replacement policy so the perfect

example is where a senior couple lives

together and their combined income their

lifestyle requires a combined income but

whereas if they pass away there would be

definite problems with keeping that pace

of lifestyle for one spouse or the other

so a life insurance plan can be designed

to just pay out a death benefit to the

surviving spouse so in that way she can

live off or he can live off of the death

benefit for a period of time in

transition from where they were

lifestyle was to where it will be a much

smoother basis also life insurance can

be used in the corporate and business

environment we call this keyman

insurance when we

have a rain maker somebody who's very

important to the operation to of a

business if they were to die it would

have major impacts on the business

itself so insuring key people in your

organization in order to pay the

business a death benefit if something

happen is also an intelligent way to

ensure the integrity of the business if

that key person were to go away and then

lastly what we're just discussing also

to pay for funeral expenses and final

expenses why because people die and they

cost money to be put away and so life

insurance policy can provide the

proceeds for that so bottom line life

insurance can pay for anything the

beneficiary wants to pay off all of

these things mentioned and more or

something that can definitely be used

and the thing is with any life insurance

policy it's normally understood well in

advance what it would be used for under

certain circumstances so for example if

you're looking for a life insurance plan

to pay for your burial costs many times

people sit down with their kids explain

to them what they what's gonna happen do

they know what to expect when the time


so let's transition and talk a little

bit about what pre-need life insurance

is so pre needs a unique form of life

insurance it's typically sold at the

funeral home and it's designed to pay

for the full cost of the funeral and

what happens is that's what makes it

unique is the following so first of all

one of the biggest selling points that's

used is that it locks in and covers the

price of final arrangements so the for a

funeral cremation so when we say the

price points of final arrangements when

I'm referencing is the actual item on by

item elements of the funeral so if we're

buried we have the casket the hearse the

opening and closing fee the service fees

embalming so on and so forth so in

exchange for buying one of these plans

the benefit to you is that in the

funeral home agrees to lock those prices

at that rate so that they'll never go up

so and then on top of that it acts as an

insurance program so if for the period

of time you pay on the premium plan if

you were to die prior to that again and

in a timely fashion you have the

assurance of the policy pay up what is

required to the funeral home so there's

no denial

servus so it gives you the peace of mind

knowing you are insured and it can

provide payment flexibility for those

that cannot pay in one lump sum or over

a small period of time so what a lot of

these plans are first offered what we

call single pay plans where you pay a

lump sum up front or you pay for example

a a two or three-year plan payment plan

just like paying off a car it's best way

to describe it now there's some that go

five plus years out to ten years and

we'll talk about those a little bit

later and why no those aren't so hot but

we'll save that for the later portion of

this presentation so now let's talk

about why people buy life insurance for

final expenses we're gonna talk about

the pros and the cons because again what

you're trying to do here is compare

should I get a life insurance policy

policy for funeral expenses or should I

buy pre neak plan so let's talk about

the benefits so first of all with a life

insurance plan you have full of control

of deciding who you want your

beneficiary to be if you want to entrust

somebody that's close to you like a

daughter or a spouse you decide that

money goes to them with preemie plans as

will see later that's not the case

also the premium sizes are much better

priced with a life insurance plan than a

pre-need of the same value so what I

mean by this is that many times they say

a ten thousand dollar life insurance

plan is usually a third of the price

maybe no more than half the price less

than a premie plan so for a

budget-conscious person a final expense

life insurance plan usually is much less

expensive and while providing the same

advantages and benefits the proceeds can

be used for something other than a

funeral one big motivation buying a life

insurance plan is not just to cover

final expenses but it's also to do a

combination of other things such as

mentioned before namely to replace

income or pay down other debts with the

pre-need plan it's as you'll see it's

just for the particular funeral they're

scheduling there's better underwriting

flexibility this is very big a lot of

people as they think about these kind of

products are in the life period of their

life where they've had health problems

or maybe minor or major and so final

expense life insurance companies provide

lots of flight

stability on underwriting you can get

all sorts of conditions that normally

people would think huh that's

uninsurable but end up being totally

fine atrial fibrillation COPD pass

history of cancer heart disease smoking

diabetes these are all insurable

conditions that are easily accounted for

with many life insurance products that

do final expense coverage let's talk

about some drawbacks now so if you were

to get a final expense life insurance

plan probably the biggest drawback is

that there's no pre-planning element to

it it simply is life insurance contract

that's designed to pay a death benefit

to whomever you want but what you get in

your funeral and how you want it to

proceed is not a part of that plan

that's something you're gonna have to

sit down and either go to the funeral

home yourself and plan it out or just

sit down and write and involve a loved

one in so that they know that what your

wishes are or done the right way also

purchasing the wrong kind of life

insurance may cause irreversible damage

and what I mean by this is there's some

plans out there that are designed to go

up in price they're designed to cancel

at a future date say at 80 and some are

even forcing a period of time where you

have no coverage even as you pay on it

it's like paying for the car that you

can't drive so it's a you have to be

aware that it's really good to work with

an expert when it comes to looking at

life insurance because a lot of the

stuff that comes through the mail that

you see on TV there's strings attached

and so many people just miss it because

these companies are smart and they know

how to kind of not hide it or even

deceive but bury it in the fine print a

lot of people miss it now many of not

all of final expense life insurance

plans are paid for life so while their

premiums are lower life insurance plans

or final expense life insurance plans

typically stretch out for the entirety

of your life so if you take out a plane

at 60 in the diet 90 you have to pay

until you die whereas with a paid-up

plan it can be what we call a paid up

within five to ten years generally

speaking so you don't have permanent

payments the rest of your life

some people hate payments now I say not

all final expense plans do that because

you have paid up policies that you can

go after and this is something I can


- in more detail if that's something

you're interested in okay so let's talk

about the pros and cons a pre-need

funeral insurance so one of the biggest

things I like about a pre-need plan is

there's definite pre-planning in place

so a person who is really concerned

about making sure that each item of the

funeral is done the way they want it a

preemie plan provides for that option

you name exactly the items you want at a

stated price and and you get it and

there's no question who's gonna get paid

sometimes people feel weird about

writing up a life insurance plan with a

beneficiary that may be not one of the

kids that really wants it there's a lot

of questions gotta ask about who do you

really trust with a premie plan you're

naming the funeral home has a

beneficiary they received money and

because you're setting the prices up

with them so you don't have to worry

about who's gonna split the money and

who's gonna have hurt feelings or

anything like that also with the fact

that you select the items you want you

also fix the prices to be the same they

don't go up so there's inflation

protection so if there was ever a huge

inflation prior to your death you know

that you've got everything locked in

place as to where it should be so

whatever it is it is what it is the

policy is portable this is very

important for seniors especially who are

snowbirds I live in Michigan in the

summer live in Florida in the winter and

new who knows where they're gonna die

and so these policies are very commonly

accepted at all sorts of funeral homes

and so you don't have to worry is this

good in one state or another

disadvantage is the plan probably the

biggest disadvantage desplaines I really

like this plan I think it makes a lot of

sense for some people but the biggest

disadvantage is just very expensive

and a lot of people just don't really

just get turned off by the fact it's so

expensive and how much you pay into it

it's such a tremendous multiple of the

value that you get and in many cases

what we're talking about is a double to

triple the amount of a final expense

plan so if you get a $50,000 final

expense life insurance plan for $10,000

in coverage $50 monthly and you expect

to pay hundred twenty-five 150 for the

same thing through a premium plan for

ten years not even to mention if we go

to seven five or less the

start to tweak up a little bit and again

there's s advantage with these plans as

the funeral home is have beneficiary if

you have other ideas besides a premium

plan as to what you want any sort of

death benefit to pay well you can't

really use this plan you're gonna have

to get a life insurance plan for

something else other than that

so let's do some cost comparison real

quick so pre-need is broken down into

the following you've got single pay

plans multi-year play pans plate pay

plans and what that means is usually two

three five seven and ten year pays and

usually what happens is when I say the

higher the plan the higher the total

cost or longer the plan the higher the

total cost what I mean by that is if you

add up all the premiums in a ten-year

plan the total totality is a lot more

than say a two or three year plan and so

what happens is while the plans are

gonna vary what I have seen in my

experience is the seven ten-year plans

were a lot of people who are on a fixed

income go that aren't necessarily making

a killing and retirement and for those

in their 50s and 60s that start these

plans you're looking at 125 to 175 a

month each out the door and that's

something you're gonna pay for seven to

ten years so a lot of people don't like

these plans as much as there are great

benefits to them because the premiums

are very high and when we're talking

premiums like this a lot of people kind

of balk at it so let me show you a case

study once I saw sighs I met a lady who

was paying a hundred and fifty months

and her plan was a ten year paid uh plan

with the funeral home for a ten thousand

dollar burial and what happened was when

he started to add the premiums obviously

a hundred fifty a month for 12 months is

eighteen hundred dollars for ten years

is eighteen thousand dollars in total

premiums paid however for an eighteen

thousand dollar premium paid and she

only got a ten thousand dollar value

burial so we have to do the math on this

and ask is it worth it is it worth

paying eight thousand dollars more into

it to plan out your funeral to protect

against the potential for inflation

which to me is overstated whereas you

could get and save tremendous amounts of

money paying a court or paying half of

this at least and get more coverage if

not the same and not have your money go

all to the funeral home but leave the

extra behind through a life insurance


see so it's me the way I describe it

it's like running down to a funeral home

it's like running down to a car lot

finding the best car you love and then

overpaying it by $18,000 it's kind of

silly so in my mind I'm skeptical if

it's really worth it when you're looking

at the seven and ten year pay plans

which a lot of people go to now there's

some people with the means that can do

it in one to three years and the

difference is negative negligible and

they may not need life insurance because

they've got other stuff set up to where

that's not a concern but for me in this

particular situation you got to ask

yourself is it worth overpaying to that

extent for the benefits that you get if

you're not sure life insurance becomes

more of a good idea and let me kind of

show you what you can do price-wise

we're going to look at 60 year olds and

70 year olds for a ten thousand dollar

life pay plan so hang with me I'm going

to pour you over to my screen where I've

got some quotes and so you can take a

look for yourself so what we're looking

at here are a 60 year old male nonsmoker

$10,000 rate as you can see you're

looking at the upper 30s to the mid 40s

for $10,000 in coverage and again keep

in mind you're looking at about a

hundred and $25 a month a comparison

with a pre-need plan on a seven to ten

year basis for 70 year old $10,000

non-smoking male you're looking at

somewhere between low 60s to mid 70s and

for a 60 year old female $10,000

nonsmoker life pay plan you're looking

at upper 20s to mid 30s and for a 70

year old $10,000 nonsmoker female rate

you're looking at upper 40s to mid 50s

one thing I talk about with people when

it comes to talking about getting the

best plan I always like to make sure

that my clients understand that there is

the life insurance qualification is a

two-sided coin first of all you

certainly want to get something that is

a good use of your money a good value a

good premium but on the flip side you

also want to make sure whatever it is

you're qualifying for you can actually

qualify for so you have price and you

have underwriting both of those have to

be satisfied in order to get a good deal

or to get the best deal as we would say

so all else equal life insurance

products when compared to preemie plans

offer more flexibility and under

let me give you some examples on

conditions that a life insurance plan

can cover if you've had a history of

cancer heart problems if you've had

neurological problems like Parkinson's

multiple sclerosis if you've had

behavioral health problems depression

bipolar schizophrenia it's the stuff

like COPD kidney problems diabetes I

think I mentioned all of these things

and most circumstances can be fully

approved for for first day full coverage

my experience with pre-need plans is

that because there's not as much

competition out there the the client is

not exposed to necessarily the best

value for what they would afford to pay

because many times these preemie plans

they're underwriting for the insurance

side is very strict I have seen people

who were rated into a two-year no

coverage period of time just because

they had depression that affects like

20-25 percent of the nation there's a

lot of people who take anti-depression

pills that just have short term anxiety

or they've got diabetes which a lot of

people have as well so what happens is

you end up paying more over the length

of time that you apply for and then you

don't have coverage for a period of time

so it's not a good deal and so that

flexibility may be a concern if you're

in the shape is not perfect and you need

flexibility that is the problem with

pre-need insurance underwriting you're

just not going to see the same kind of

underwriting flexibility but you would

with life insurance and it could cost

you tremendously so for example if you

had one of these issues that prevented

you from getting coverage with a premium

plan and you died within the first two

years and there was no coverage provided

then is it really worth all that effort

and going and on the premium we paid

because you're not fully covered in the

funeral is not probably paid for if you

could have gotten it through a life

insurance plan it's a question you gotta

ask yourself and that's why I think life

insurance is really good especially if

you've had any kind of even minor health

issues it's worth taking a second look

at to make sure you're gonna get the

best deal so let me give you my final

thoughts on pre-need life insurance and

versus regular life insurance I think

pre-need life insurance is a good value

when you don't really have a

issue if you can pay for the sing in one

or two or three years it's probably the

best deal you're gonna get especially if

you really value the pre-planning uh

setup so a lot of people have lost loved

ones and they're forced in a position

where they've got to pick out the casket

they've got to pick out the dress and

flowers and they don't want to do any of

that because they're trying to mourn

their dead and it's very difficult on a

family member to have to make these

decisions so they're very adamant people

that really like these plans and doing

these because you get to take care of

that so your kids don't have to your

spouse doesn't have to so if you really

think pre-planning is really important

and budget isn't so much this is a good

plan to consider and bottom line if you

appreciate having a policy 100%

dedicated to paying off the funeral home

for these expenses then this is a good

plan whereas most life insurance people

who go the life insurance route

typically are a little bit more budget

conscious they may look at one hundred

and fifty dollar premium for the burial

plan and just kind of scoff at it and

cringe because they can't afford it

Raz it may be a 60 70 $80 a month deal

with a life insurance plan that ends up

giving them even more coverage than what

the preemie plan they'll take that all

day because the value proposition is

there and plus the premium is nearly a

thousand dollars less see a year and

that goes a long way for some people

also when the insured wants more than

just a policy to pay for funeral costs

it's a smart idea to get a life

insurance policy many of us have more

than one goal with a life insurance plan

at least that's my experience with my

clients so if you don't want to just

have a premie plan or a funeral related

payment plan and you want to add into

that plan the ability to give money to

your spouse or loved ones or pay off

debts a life insurance plan is a better

combination package and bottom line

people who like life insurance

appreciate the flexibility of deciding

on beneficiaries and and they like the

control to it and I will say this a lot

of people buy life insurance and for

burial reasons and they don't go to

funeral home because they're skeptical

I'm not validating any of that the

funeral home business has an element of

used car salesman aspect to it I can

tell you I don't feel that way

personally I think for your homes do

great work especially at some of the

most emotional times in people's lives

my experience has always been positive I

think back when my grandmother died back

in Michigan the team at that particular

funeral home was great they did a great

job of showing her it was very

professional they were ready to help

when asked and they weren't lording over

you at the same time they allowed you to

have your privacy so I think highly of

funeral directors but some people just

have really bad experiences and and

don't want to do anything with them

until the very end so let's talk about

how to qualify if you're interested in a

pre-need plan I'll leave you with this

before I tell you about what I can do

for you and with a premium plan go to

the funeral home of your choice and tell

them you're interested in a pre-need

plan most the way the preemie plan is

set up the work is that you contact the

funeral home and they offer you the

insurance I can't offer it to you

because I'm not a funeral director most

states you got to be a funeral director

to do that however if you're interested

in a life insurance plan and you think

those benefits of that plan or more in

your line of what you're looking for the

application process is simple you'll

want to get an agent you want to work

with which all of course nominate myself

and after you and I have a conversation

I'll draw up a quote show you what I got

and we can do everything over the phone

or over the internet there's no personal

visit necessary these days there's no

exams either with most of these products

and usually get a decision within

several days two weeks and then within

that same period of time you get your

policy mail and it's it's very simple

very straightforward just do as you're

told and go through the process and you

get life insurance covering and taking

care of things and giving you peace of

mind fairly quickly so final steps if

this is something you want to do visit

my website it's buy life insurance -

burial com you can request a quote

easiest by going to the contact box at

the top sending me a message that way or

there's a pop-up box at the bottom of

the screen you can just in a message

that way otherwise called me a triple

eight six two six zero four three nine

you can speak to me live that way and if

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make sure you subscribe I do a lot of

videos like this all the time my name is

David do for dat buy life insurance for

burial calm thank you so much for

watching thank you