Ask Terry Questions life insurance

life insurance

By Terry Savage on June 30, 2015 | Financial Planning / Retirement

Hi Terry,
Read your 5/10/15 article in the Chicago Tribune “5 things to know about life insurance”. Here’s my question..I’m a 66 yr old female, recently retired, single with no dependents, condo paid in full. I have a nephew that is my beneficiary. I don’t want him to have any out of pocket expenses when I pass. Saw a commercial on TV advertising for “final expense life insurance”. Would it be a wise decision to purchase this type of life insurance or any type of life insurance? I would greatly appreciate your response. Thanks. Eileen

Terry Says:  I’m assuming your nephew will be grateful for any money you leave him through life insurance.  But have you made a will, and created healthcare power of attorney and business power of attorney to make sure that he is empowered to handle all the decisions you would like him to make?  Have you discussed this with him?  And is he willing to assume all those responsibilities?   You should have the discussion now — as you update your estate plan.  And ask him these questions BEFORE you let him know that he will be beneficiary of life insurance.  In fact, you might just leave that as a surprise for after your death!

You might want to purchase pre-paid funeral expenses and a cemetery plot — or just assume there will be enough money to bury you appropriately at the end of your life (which is likely to be at least 20 years from now, according to actuarial tables).  But there’s no reason to waste money on additional insurance to cover  your final expenses.  That’s the one thing you surely won’t be around to enjoy!

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