Life - and death

How many of you wonder about those annoying life insurance and funeral plan insurance adverts on tv? I get sick of being bombarded by ad's that take up my valuable viewing time, and I really wonder whether the ad's are effective or not.

How many of you have actually bought insurance from a tv advert? I know I haven't. When I have bought insurance of any kind, I thoroughly researched what I was after and then got quotes from various different companies.

I have insurance for the following things -

• contents (I rent)
• car
• cat
• dog
• life insurance (with both my Superannuation fund and with a different company)

I assume that I am like most Australian's with the insurance I have. Sometimes I do wonder whether I need more or less insurance, whether I'm getting bang for my buck, whether I could get rid of the insurance for the dog and one of the cat's. That would save a nice $60 a month or thereabouts. Then knowing my luck, the dog would get hit by a car and I'd need the insurance.

The only insurance that I'm considering at the moment is funeral insurance. I guess that being bombarded with all those funeral plan advertisements on tv are having some effect after all!

I investigated one day, and found out the following...

If I were to get insurance for a funeral plan at my current age (27) for $143.28 a year for a benefit of $8000 and I kept the insurance until I passed away in say, 30 years I would pay a total of  $4298.40 over the 30 year period.  This of course, doesn't take into account the increase in premiums as I age.

I just can't wrap my head around spending that kind of money over that time frame, when if I put that money in savings, it could a) be used for other things and b) be used for my funeral if I passed away. Of course, I might have to supplement the $143.28 to make up the $8000 I was quoted on.

Of course, having funeral cover would really help out if I passed away in the first couple of years of holding the insurance. I'm really going to have to give the whole funeral insurance thing a whole lot more thought.

Remember - I'm not giving advice relating to your circumstances, I'm simply discussing my thoughts on the funeral plan idea. Please seek advice that is appropriate for your circumstances and financial situation.