AARP/New York Life Informative - AARP/New York Life
New York Life insurance company is currently running a TV ad that is obviously designed to scare the elderly into buying their life insurance. They are suggesting that if you have outstanding debts such as medical bills, credit card balances and funeral expenses they may fall to relatives to be paid. This is tactic is despicable.
No relative is responsible for any medical expenses or credit card balances beyond the ability of the deceased estate to pay. This assumes the deceased is to only one on the account.
Funeral expense are a different issue. They should be paid from the estate if at all possible. However the contract for payment is usually someone who is living. Whoever signs it IS responsible.
Purchasing enough life insurance to cover funeral expense may be a good idea if you can do it with hurting yourself financially. But do not be suckered into buying enough to cover all of the other items based solely on the idea that your son or daughter may have to pay them out of their pocket.