William Penn Life, 2017 (52. évfolyam, 1-12. szám)

2017-01-01 / 1. szám

Moneywise with Bob Bisceglia, National Sales Director

Resolve to be prepared

Proper planning will make things easier for your loved ones

HAPPY NEW YEAR and welcome 2017!

This is the time of year for resolutions. According to Nielsen surveys, the most popular New Year's resolutions are to get in better physical shape and lose weight. But, most such resolutions are short-lived, and people typically revert to old habits within one month. The third most popular resolution is the easiest to maintain: to not make resolutions at all.

You have to go pretty far down the list of resolutions before coming across ones that involve getting in better financial shape or taking some time to properly plan for your and your loved ones' financial future.

In 2016, we all lost friends, relatives and loved ones. Recently, one of my associates attended the funeral of a close friend, and she told me how shocked the family was at the total cost of the funeral. She recommended I write a column regarding the preparation and costs associated with your average funeral.

So, in the spirit of helping our members "resolve" to make better plans in the coming year, I'd like to share some interesting data with you.

Many times you'll hear people say that the average funeral costs around $6,000. That estimate, however, is typically based on old figures. Basic funerals today typically cost anywhere between $8,000 and $12,000 and like everything else, the costs go up annually due to inflation. While cremation is gaining in popularity, the traditional funeral is still the most popular choice.

I lost my mother-in-law last year. Her instructions included a request for a simple cremation rather than a traditional funeral. She was very proud of the fact that she had purchased a "pre-paid" plan and always told us that "everything was taken care of." After she passed away, the funeral director told us her plan was valid only at that particular funeral home, which was in Florida where she had resided for many years. She purchased the plan there before returning home to New York to live out her last years with family. After tallying all the fees and other costs related to the funeral, our expenses exceeded $7,000 - not including the cost of hotel rooms and meals while the family was there. We did, however, (after a lot of screaming and yelling) receive a small refund of the premiums she pre-paid to the funeral home in Florida. That was one great learning experience for us all.

While it's important to realize that costs can vary considerably between funeral homes and geographical areas of the country, here's a ballpark estimate of the main costs associated with a funeral today:

• Funeral director's services - $1,500

• Casket - $2,300

• Embalming - $500

• Funeral home services (viewing) - $500 to $1,500

Ordinary Life Senior Special

ISSUE AGES: 56-90 NO CERTIFICATE FEE

Issue

Age

Face Amount for $200 Annual Premium*

Face Amount for $400 Annual Premium*

Male

Female

Male

Female

56-60

$6,000

$8,000

$12,000

$16,000

61-65

$4,900

$6,800

$9,800

$13,600

66-70

$4,100

$5,600

$8,200

$11,200

71-75

$3,300

$4,700

$6,600

$9,400

76-80

$2,500

$3,800

$5,000

$7,600

81-85

$1,700

$2,900

$3,400

$5,800

86-90

$1,200

$2,000

$2,400

$4,000

• Grave site - $1,000 to $2,000

• Grave site services - $600

• Grave liner/container - $1,000

• Headstone - $1,000 to $1,500

In this example, total costs would be between $8,400 and $10,900, and that's just for the main items. There are additional charges for things like flowers, clergy, musicians, a post-funeral reception or dinner, and placing an obituary in the local newspaper. There are also costs that many don't anticipate, such as travel, meals and (possibly) hotel rooms for out-of-town family and guests.

Speaking again from personal experience, I lost my mother four years ago. She passed away in Florida but wanted to be buried in the Pittsburgh area. Our entire family flew to Florida to be with her when she passed; then we held services in Florida before having her transported back to Pittsburgh, where we again held services and the actual funeral. Although this isn't the norm, that experience is not uncommon and certainly illustrates how additional expenses can be incurred when your family is spread out like ours was.

Here at William Penn Association, we are often asked

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4 0 January 2017 0 WILLIAM PENN LIFE