Inflation for Funeral Costs

Discussion in 'Final Expense Forum' started by Jack B, Aug 11, 2017.

  1. Jack B
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    Jack B Well-Known Member

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    Someone asked me to give her how much a funeral for $10,000 would be 10-20 years down the line, with inflation.

    Can someone link something which has those figures, I know I saw it with some companies literature.
     
  2. NSRH
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    NSRH Well-Known Member

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    I Googled it real quick and got this. Looks pretty good, but I only skimmed over it.

    http://eebrokers.com/wp-content/uploads/2015/02/Projected-Funeral-Cost.pdf

    I have seen some that are age based that overly inflate the inflation number so the cost of a funeral doubles in 10 years, I personally wouldnt use those.
     
  3. Jack B
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    Jack B Well-Known Member

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  4. alphawave2k
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    alphawave2k Well-Known Member

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    Instead of using a link, or formula you can easily come spitting close to a figure using the "Rule of 72" thanks to Einstein. You just need to have agreement from your prospect as to what the inflation rate may average into the next 15-25 years.
    According to the Rule of 72, the length of time anything takes to double, be it an investment or future cost of anything can be easily calculated by dividing 72 by the average % increase annually. So, if the average funeral is whatever it is we all say $7-$8K today, and we claim an increase of 3% average annual increase, it would work out to 24 years. (72/3 or 24).
    The part again that is hard to pinpoint is the average % increase....if we believe the Govt, we are not even running at 2% average inflation rate now. We know some things have been increasing at a higher rate while others have been increasing at a lower rate. If anyone has more specific funeral costs inflation rates, plug that sucker in!
     
  5. KRobby
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    KRobby Well-Known Member

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    Get the one from the US Government Social Security Administration, with the logo. It has male/female, age, life expectancy, and estimated funeral cost at death, based upon life expectancy.
     
  6. Newby
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    Newby Well-Known Member

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    There is no way you can predict what anything will cost in the future. You can only guess based on past history.

    Tell them based on past history, things double every 15 to 20 years. That's about as close of an answer as they are looking for.
     
  7. dabulls
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    dabulls Well-Known Member

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    Just tell them to get the most coverage they can afford... to be safe
     
  8. KRobby
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    KRobby Well-Known Member

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    Big mungia uses the inflation sheet with every appointment. Not sure if the rest of his boys do or not. I like the one YIG uses in their turnkey system.
     
  9. Todd King
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    Todd King Well-Known Member

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    I know when I first came into the business everyone around me said that it doubled about every 10 years. You can find stuff written that says the same thng and many other uplines say it too. It wasn't long before I realized that wasn't true. I think your figures are much closer.
     
  10. Newby
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    Newby Well-Known Member

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    There are 10 year periods where it has doubled. But on average it's 15.

    But I think over the next 15 it probably won't. Inflation is too low right now for that.

    Guessing at these things is really pointless. Even though there are averages it's up and down decade by decade. Averages aren't what is going to affect us. Real numbers are.
     
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