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Friday, August 21, 2015

Easiest Way to Prepare for Funeral Expenses

I came across this article "Even in death, no escape from rising prices" and I was surprised that the funeral expenses skyrocketed so much that people have to rebury as many as three of their dead in a single grave! Isn't that shocking? According to the article, if you choose to bury, the whole funeral expenses could cost up to RM50,000 on average. Even for cremation, it could easily costs above RM10,000!

For Chinese, we always use the word "棺材本(coffin cost)", which some refer it as pension fund or retirement fund. But literally, the word itself would mean the funeral expenses, which many of us would have missed out in planning and preparation!  

In fact, nobody wants to think about it, but eventually someone has to pay for it. Like it or not, death is one of the inevitable life event. Hence, funeral planning is something that must be done at some point. So I have written this post to share on the easiest way to prepare for funeral expenses, be it for your own or the elderly. It's straight forward but many are not aware the usage of it!

Hence, to prepare for the funeral expenses, go for those Personal Accident (PA) plan for senior citizens may just solves it all! 

What's good about it?
Basically, the first main feature would be the 100% Guaranteed Acceptance and No Medical Checkup Needed. So for those that been rejected by insurance company, this is the last chance! Besides the sum assured, if death by accidental, the benefit would be multiply up to 5 times according to the age range! 

How does it works?
Unlike the typical insurance, the insurance premium of these plan are fixed and it does not increase with age. It is sold by units which is RM50 per unit and minimum 1 unit per month. So the sum assured can be easily calculated by multiplying the number of units you bought. Here's the sum assured table! 

Who should buy? Any example for better illustration?
To make it easy, here are few scenarios for the best illustration.
Scenario 1 : Mr Tan Age 50 Bad Health
Main Attractive Point : 100% Guaranteed Acceptance, No Medical Checkup
As Mr Tan was rejected by all of the insurance companies due to his bad health condition, this is his last chance as no medical checkup is needed! Be it to leave as estate for his next of kin or the preparation for funeral expenses.

Scenario 2 : Mr Lim Age 50 Low Income
Main Attractive Point : Low Premium (RM50 per month)
Even though Mr Lim is healthy but due to the low income, he could not afford any other insurance. In this case, he can take advantage on the low premium of RM50 per month, to at least, prepare for his own funeral expenses without adding burden to his family. 

Scenario 3 : Mr Ng Age 75 Old Age
Main Attractive Point : High Entry Age (Max Age 80)
At the age of 75, Mr Ng is unlikely to get any insurance without being charged with expensive premium. So again, he can takes advantage on the high entry age even though the sum assured is lower relatively. But it would be sufficient for funeral expenses!

Scenario 4 : Mr Cheah's Son buy for Mr Cheah Age 60
Main Attractive Point : Children buy for Parents
Another great thing would be children buying for parents as the policy holder could starts from age 18 and above! In most of the cases, children would usually buy this as a funeral planning for their parents as death is an inevitable life event, so that the funeral arrangements could be done according to their parents' wishes

Great! I'm interested! Any company offering this?
As far as I know, company G used to offer this plan with the name of Great Senior Care. But now left with company Z with SeniorGold and company AI with SeniorCare. Here's the side by side comparison that you can check it out! As these are just for illustration, do contact #yourfinancedoctor to find out the full details. 

To cope with the rising price of funeral expenses, one should really need to plan for it. Not just the arrangement of the funeral but also the expenses. (Take note that to estimate the future value of the funeral expenses, inflation should be taken into consideration) Do it for yourself or at least help to lift the burden of those you love. Money should be the last thing to worry about while mourning for the loss of a loved one. 

If you are interested, feel free to contact #yourfinancedoctor (Click here!)
p/s: All the above are solely my personal point of view, if there's any mistake feel free to let me know. ;)

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