You have all seen the ads, low-cost, guaranteed permanent life insurance regardless of your medical condition for only $9.95 a month per unit. Ah, the great unknown, what the heck is a unit?
Well, if you are one of those seniors looking at this good deal to help pay final expenses as they say, look closely. If you want to pay for an average funeral, you are going to need a heck of a lot of units. That’s because a unit is equal to $717 in insurance benefit. So if a funeral cost say $8,000 you have to buy twelve units at a monthly cost of $119.40 Oh, by the way, if you want that benefit to be paid, you have to live at least two years after the coverage is in effect, not that living another two years is a bad idea mind you.
So the next time you see Alex, say to him “$717” and he will reply, “What is a unit of coverage?”
This helpful hint should get you reading this blog on a regular basis, the per unit cost is zip.
And here is another hint, don’t wait until you are old and cranky like me to buy the life insurance you need. Only 44% of American households had life insurance in 2010, in 1960 that number was 72%. Who do we blame for that?
Source: LIMRAs Trends in Life Insurance Ownership study.