That money is not maximizing the death benefit your heirs could be receiving…
If you have socked away $10,000 to cover the cost of your own funeral in a CD or Savings Account, congratulations for planning ahead. It’s a very nice and honorable thought for you to help out your relatives during an emotional time.
Here is the bad news.
- Either of these accounts WILL get held up in probate to be determined by the court on how it will be distributed. It may take months (if not a year) for your relatives to get their hands on the money to pay for your funeral. In the meantime, they will have to pay for the funeral out of pocket. Their pocket.
- You’re not maximizing your money in potential value. You just have $10,000.
It’s 2020, if you have money sitting in a CD earning 0.34% (3 month CD) or even 2.0% (5 year CD), you aren’t maximizing the value of that money. If you have an example CD or Savings Account earning 1%, it would take 72 years to double your money. 36 Years to grow to $15,000. Yikes.
Insurance can help this scenario.
- Money provided by the death benefit of an insurance policy to your beneficiaries is provided tax-free and bypasses probate. The money is paid within days of a death.
- Buying a policy with a single premium (the $10,000 you put in savings or a CD) will provide a death benefit larger than the amount you put in.
Here’s an example in 2020. James is a 65 year old male, non-smoker, average health. He puts $10,000 into a single-premium whole life policy. Immediately from day 1, his policy will pay out $15,113.95 if James dies the very same day the policy goes into effect.
That’s an additional $5,113.95 that your heirs can use as they see fit. That’s a nice legacy to provide.
Give me a call at 843-936-0632 or send a message to see what value I can provide for the money in your savings or CD.