Many years ago, I encouraged my Mom to set aside enough for a CD. I think it was $8,000. instead of buying a policy for $10,000. which was going to cost her a lot more than what she would have earned on the money she had in a money market. She just had a 1 year CD and allowed it to renew automatically at the new rate. At the time, the rates were higher. A few years ago when her health declined, the CD was cashed and she pre-paid her funeral and plot expenses. She passed away in December of 2009 and that decision turned out to be a very good one.
Her CD in the end kept her from qualifying for certain benefits so it was better for her in the end to just make her will, and pre-pay her expenses.
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