funeral plan and life insurance at 21?

[DisneyExplorers]

Am I being crazy in sorting out a funeral plan and my life insurance already at the age of 21?

I have already made a will due to owning property so I just figured it would make sense to have the other policies to hand also?

I have just had a call back from two companies as they were confused by my date of birth and many surprised that I am sorting this out at such a "young" age. Am I being to keen on sorting things out?

I don't have any children and i'm not married although I have a partner who has brought two twin girls (whom are heavily featured in my will) and I just don't want anyone to have a burden should anything happen?

One company even told me to hold off a couple of years as it's silly to think of something at this age.
So my question is, if you were in my shoes, what would you do?

[hideinpockets]

I didn’t have life insurance at 21 but I had to get it at 25 due to buying my house, so I would say that life insurance for sure is something you should have especially if you do have a house.

I don’t have a funeral plan and I must admit it’s not something I’ve really thought about but if you want to think about it and consider it I don’t think your age should really matter! After all death doesn’t just happen to those above 80!

[Guest]

I would get a term life policy to pay off the mortgage should you expire.

But otherwise no and definitely not the funeral plan, you start that now and the odds are that you will pay for dozens of funerals before you actually require one.

[Omega1]

Originally Posted by Claudette

I would get a term life policy to pay off the mortgage should you expire.

But otherwise no and definitely not the funeral plan, you start that now and the odds are that you will pay for dozens of funerals before you actually require one.

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Agree - if you are worried about funding a funeral put a small amount per month in a savings account.

[400ixl]

If you own property and it is mortgaged then you should have term life cover for that, or is the mortgage in your partners sole name?

Having life insurance for other purposes should not be age dependent, but down to personal choice and how that fits into your life. So no reason you should not have that in place. One thing to check is do you have life cover through your employer or can get it through them. Can often be quite effective.

As for funeral, I guess for me it would be down to what hardship would it cause in the short term should your partner / family suddenly have to cover those costs? Presumably for a short term until the life insurance paid out. If the answer is not really an issue, then I wouldn't bother. If it would then its worth considering, but given the likelyhood at your age, you could just start saving into a rainy day account.

[Dinglebert]

Would not have a funeral plan. As others have said if you are worried about cost of funeral small amount each week away.

If you are looking at life insurance then I would recommmend Cavendish Online. They charge a small upfront charge instead of a very large charge hidden in the premium which goes to the broker. Take whatever quote you get from a broker with whatever company they offer and then price that exact same deal up with Cavendish. You will get the same deal far far cheaper.

No I don't work for them or have anything to do with them other than taking out my Mortgage life cover with them about 15 years ago. It saved me a small fortune in premiums.

[Jan]

To me, a funeral plan is just another way of saving. A funeral is something that has to be paid for one way or another, either with money from your estate ultimately or from someone else’s pocket. So you would be saving money for someone else. Not a bad idea in my book.

[PPM]

Life insurance yes.
Funeral plan... no. It’s just a savings plan you can’t touch. Your life insurance would pay out anyhow.
When my father passed our Solicitor paid everything and charged back thro the life policy. We didn’t see any bills ourselves.
A bit gloomy for a Friday PM and a21 YO

Me ...no funeral plan... no life insurance... Mrs PPM is going to roll me in an old blanket and stuff me in the wheely bin. She would do it now, but I’ve not passed yet

[Mel49]

I think it is very sensible to think about these things at a young age as could save your family heartache and financial problems at a future date but not something many 21 year olds think about.

My son is 23 and in rented accomodation but I suggested he take out Life Insurance as he has a 6 month tenancy with his girlfriend (my DH is guarantor) and she does not earn enough to stay in the flat if something happened to him so it is piece of mind for her. Hopefully it will never be needed but only £5 per month as he is young and healthy and as and when they buy a property he will take out additional cover.

If you take out life cover and include the antcipated costs of a funeral then that safeguards this side too without paying into a funeral plan for many years. You can prepay your funeral with some companies but you would need to look into the ins and outs to see if they go bust, change hands etc that you are still covered.

[Mr Tom Morrow]

We haven't done these funeral plans and haven't really looked into them

What would worry me though with both the ones you pay monthly or the fully paid up ones is the financial outlook and stability of the company concerned.
Who is to say they wont go bust?

Maybe there are safeguards I dont know. Personally as others have said maybe a regular savings account in a Building Society or suchlike.

It does depress me though they keep giving me leaflets for them in our local Building Society