Term Life Insurance

There are two advertisements that appear frequently on television that I find more annoying than most simply because they are so misleading.  You’ve seen them both if you ever turn on your television during the day.  One starts with a woman asking another how she is doing after the recent loss of her mother.  That woman responds that she is okay because she had just received a check from her mother’s life insurance policy that enabled her to pay her mother’s bills and as a consequence that relieved her of all kinds of financial  responsibility.  What annoys me most is that there is no law that automatically makes the daughter personally responsible for the debts of the mother.  The one expense that cannot be avoided is that for funeral expenses.  The advertisement, which is AARP sponsored, ignores other, and possibly less expensive alternatives, to pay funeral expenses such as a term life insurance policy from another less advertised insurance company.  You should know that really is what you are purchasing, but the ad gives you the impression that the product advertised is something unique because it’s from a company approved by the AARP and has a well known spokesperson.  Unfortunately, it means only that the AARP and the spokesperson are getting a piece of the profits at the expense of you, the purchaser.  This highlights the fact that what you are purchasing is an expensive term life insurance policy.  If you fail to make the payments, the policy will lapse and be worthless.  Another alternative available to pay for those funeral expenses is a prepaid funeral from a local funeral home.  This alternative may “freeze” the cost and also enable “mother” or the deceased, to specify the arrangements that she wants and not those that the children and/or grandchildren can possibly argue about.

 

The third alternative to the advertised product is not incurring debt, paying off your mortgage and start saving as soon as your children are out of diapers so you don’t burden them in your old age.

 

I’ll let you guess my choice for the second most annoying advertisement directed at the elderly until my next blog, but in the meantime don’t get sucker punched by a slick television ad.   Before you buy anything, ask yourself why a product that so benefits the company selling it is being touted by the AARP, an organization that pretends to protect the elderly but apparently is more interested in earning a profit for itself, and check out the alternatives outlined above.  If you have trouble finding an acceptable quote from an insurance company or funeral home, call our office and we will be pleased to provide you with some phone numbers or websites.

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