Life insurance is NOT the answer for a funeral.


“Can you donate to my baby daddy MC Louis V’s go fund me campaign? We’re in a bad position with his death after he fell off his motorcycle.”


Ok, so how do you get your image not to end up on a Gofundme page after you die?

*Stop buying stupid sh*t and re-direct at least some of that money to helping your family.*

ESPECIALLY if you are leaving behind a significant other and kids – both who were dependent on your income. Here’s what to do and what not to do:

1. Life insurance is NOT the answer for funerals. Most funerals take place within 3-7 days after death. Even most quicker life insurance payouts will take 10 days (most states life insurance companies have 30 days legally. If you died within 2 years of getting your policy, insurance companies could legally postpone payout to 6 months)

Buy life insurance to replace income for your dependents AFTER the funeral. NOT for funeral costs.

2. Burial insurance is NOT the answer. These are expensive policies they created to hustle black people out of their hard earned money since the early 20th century. When compared side by side, the premium on burial insurance can be 10 times the comparable premium on a term policy. Affluent people know the truth –>>

Burial insurance doesn’t even pay out in time to do what it’s supposed to do anyway.

3. Assuming your “loved ones” will just put it on credit cards is NOT the answer.  Using credit cards to pay for funeral expenses and hoping you receive a life insurance payout before the grace period – this is the quickest way to turn the 2nd most tumultuous time in your life into the 1st. Same thing for promising to pay funeral homes later or on credit. Most funeral homes won’t let you defer payment because they don’t want to have to try to collect later

You thought you were sad now. Just you wait until the insurance company starts playing games with that policy payout and you find out the only one who doesn’t play games is your credit card company.

4. What you SHOULD do:

-Use savings accounts earmarked for every short term situation that could/will come up in your life. General emergency fund, car repair buffer fund, vacation buffer fund etc AND A FUNERAL EXPENSE FUND.

This can be done in two ways:

A. create a savings account that has a Payable on Death feature, name a beneficiary and upon your death that money held in savings will go straight to them bypassing probate. But you have to be smart about your overall estate plan (another reason why you shouldn’t have debt ever in life)—>>

B. Keep that same savings account but add a family member or you task with managing the funeral directly on the account and communicate this with them. Refer to the “Relationship and Family Finance section in Brass Knuckle Finance to apply these potential costs to the correct bank account. Here you will learn how to structure your joint checking/savings accounts within a marriage or MWS.

-OR use a Trotten trust, which is payable to a beneficiary without going through probate. –>>

-OR use a prepaid funeral plan, known as an irrevocable funeral trust, which you generally buy from a particular funeral home.

We need to not shy away from this taboo subject any longer. Figure it out now so you wont have to scramble and figure it out later. Always keep important information in a place where everyone in your family can access it.

But please stop responding to funeral fundraiser posts with “why didn’t you get life insurance” when most everyone reading this would leave their family in a precarious position in the event of their untimely death. Life insurance or not.

And for the love of claud, please stop showing your wealth in public and keeping single digit bank account balances and no succession plans in private.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s