February 26, 2010

Buying a Memorial Plan

Posted in personal, planning at 2:01 am by kimsan23

Dying is a fact of life….

When a person dies, it’s not just about ceasing to live and getting buried but also about preparations for a wake, getting permits, looking for a mortuary, buying a coffin, as well arranging a burial or cremation.  These processes cost money and could be quite expensive if spent on one at a time during the time a person dies.

The practical thing to do nowadays is to invest in a good memorial plan.  It doesn’t have to be a very lavish or expensive one, a simple one works too as long as all the basic services are there.

Last week, I bought a basic memorial plan to prepare for my own demise.  No, I do not plan to die soon— I just want to make sure that when the time comes, no one will have to worry about where to get the money for all my expenses as well as how to go about the various arrangements (permits, venue, religious services, cremation etc.)

I paid for a plan over 100k in full and am totally happy about the package I got.  The nice thing about the plan is that it starts earning money next year because I paid in full.  If I had paid in installments, it only starts earning after 5 years.

The plan comes with all basic mortuary services and a cash/insurance benefit as well.   There will be money for my legal heirs as well as enough for me to get any additional services like a cremation.

In short, the investment can grow and the great thing about it is also that I could sell or transfer the plan to absolutely anyone.   Selling the plan immediately guarantees an interest over what I initially paid.  Transferring it to a friend or family member ensures that they do not pay ridiculously high fees for funeral/mortuary services.

Of course, buying the plan put a huge dent in my savings but hey it’s considered a good investment, one that also earns over time and will relieve your loved ones of having to panic if and when it’s your time.

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1 Comment »

  1. Rex said,

    I think it was wise for you to buy a vehicle that makes money however you are accepting the following:

    1) If you die at 60, will the company still be around?
    2) If you were to take the 100k and just invest it yourself say in risk-free government t-bills (5% interest) – couldn’t you afford a memorial by the time you are 60? At 60 it would be about PHP 430,000 (or around PHP 180,000 inflation adjusted)


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