Rowena admits it was a TV ad that convinced her to buy funeral insurance. She'd be happy with a "no-frills" send-off but says she feels trapped in the arrangement, which will see her pay $40,000 by the time she's 90.
The way they present everything is very predatory and designed to confuse people wiith poor financial literacy. They prey on peoples emotions about not wanting to be a burden to their children, and it is presented in a misleading way. A lot will offer the full amount of your premiums back, which makes it sound like you can’t lose. But in effect people are being conned into providing a no-interest loan, which can’t be retrieved if another need arises and if you can’t or don’t continue the payments you lose the lot.
The way they present everything is very predatory and designed to confuse people wiith poor financial literacy. They prey on peoples emotions about not wanting to be a burden to their children, and it is presented in a misleading way. A lot will offer the full amount of your premiums back, which makes it sound like you can’t lose. But in effect people are being conned into providing a no-interest loan, which can’t be retrieved if another need arises and if you can’t or don’t continue the payments you lose the lot.