Recent reports like this one  from a prominent investors website have highlighted the current reality, that half or more of Americans can’t afford to write a $500 check for an unanticipated expense – even people earning more than $75,000 a year, a third more than the typical household earns in most parts of the country.

The article in question is related to recent reports indicating that after a decade or more of offering cell phones free or for a nominal charge in exchange for a multi-year commitment on a  service contract, phone carriers are now moving to eliminate the practice, and will now be requiring customers to purchase their next cell phone at full retail prices.

Maxed Out

With the average smart phone today running anywhere from $300 to $900, that’s more than the average American can afford to pay out of pocket after regular monthly expenses like rent, utilities, car payments, groceries, and gasoline.

And its not just one cell phone per household, either. Typically today EACH person in a household carries a cell phone, and even with multi-phone family plans, that can easily add up to hundreds of dollars a month, NOT including the cell phones themselves.

With more and more people totally dependent on their smart phone, cell phone insurance is an increasingly hot item. Unable to pay for a new phone out of pocket in the event of loss, theft, or breakage, consumers often end up paying far more in insurance premiums per year than the retail value of a new phone. In spite of this, fully two thirds of Americans say they would not be willing to cut back on their cell phone plans to save money.

While for many credit cards continue to provide a buffer against unexpected expenses, the reality is that many people are maxed out on their credit cards as well, and are paying a small fortune each month in simple interest charges on the carried balances.

Sudden Death

If a large percentage of Americans today cannot even afford to replace a simple $500 cell phone, then what do you imagine is the impact of a sudden death, requiring an up-front expenditure of $3,000 to $10,000 for a funeral and burial or cremation that has to occur within a week of death?

Balances in savings and bank accounts of the deceased may not be available for weeks or months, and even the proceeds from a simple funeral insurance policy may not be received until well after the funeral. Most funeral homes on the other hand require payment in advance of services being provided.

Avoid Debt With Funeral Pre-Funding

By pre-arranging and just as importantly pre-funding your funeral, you can save your family and loved ones from having to go into debt for your funeral when that time finally comes.

Perhaps you are in good health now, and looking forward to traveling in your retirement, or relocating to a warmer locale.  Maybe you don’t know where you will be in a few years.

By pre-planning you don’t need to be tied to one funeral provider. Fully portable pre-funding plans are now available that will ensure your funeral and burial are paid for, no matter where you are when the time comes.

Also by pre-funding your funeral now at a time when you hopefully have more assets available, you are preparing for a possible future where you may not have as many assets or income, or perhaps will have had to draw them down to qualify for long-term care under Medicaid.

Pre-arranging and pre-funding your own funeral is a gift of love to your family.  Contact us today to learn more.


Jamie Allar
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