Who will get the prize? Get out a small scratch piece of paper…..

What is the average cost of a funeral?

Whoever guesses closest will win a piece of candy!

$6,560

Funeral Costs• fee for the funeral director’s services: $1,500• cost for a casket: $2,300• embalming: $500• cost for using the funeral home for the actual

funeral service: $500• cost of a grave site: $1,000• cost to dig the grave: $600• cost of a grave liner or outer burial container:

$1,000• cost of a headstone: $1,500

Life Insurance

Purposes of Life Insurance

• Cover funeral expenses• Replace lost income

Important Terms

• Beneficiary– The person who receives the money when

someone dies

• Coverage– How much the person’s insurance is worth• How much the beneficiary receives upon the death of

the insured person

Types of Life Insurance

• Term Insurance– Insurance protection only for a specific period of time– Low cost premiums– Must be renewed at the end of each term if you want

to keep the coverage– Premiums almost always go up

• Permanent Insurance– Protects a person for their whole life– Higher premiums– Premiums usually never change

Factors Affecting the Cost• Health– Poor health = higher premiums– Smokers = higher premiums

• Family Health History– History of health issues = higher premiums

• Occupation/Hobbies– More dangerous activities = higher premiums

• Gender– Women have lower premiums than men

• Age– Older = higher premiums

Quick Review1. What are two reasons why people buy life

insurance coverage?

2. What is a beneficiary?

3. What is the difference between term and permanent life insurance?

4. What factors will increase your premiums?

Replace income loss, cover funeral expenses

Someone who receives the life insurance money

Term is only for a specified time period; permanent is for your whole life

Poor health, bad family health history, dangerous occupation, male, older age