Law week 6

Understanding Preneed

  • Difference in Textbooks: Mortuary Law (Chapter 10) vs. Fundamentals of Funeral Directing (Chapter 13) - focus on highlighting more information from Chapter 13.

  • Goal of Selling Preneed:

    • Increase market share.

    • Selling preneed leads to at-need business creation.

    • Previous service increases likelihood of return.

    • Approach survey-based follow-up delicately.

  • Challenges in Promoting Preneed:

    • Decrease in brand loyalty due to family mobility.

    • Increased competition from various sources (discount providers, internet, retailers).

    • Preneed ensures consolidated services at a single location.

  • Cost Concerns:

    • Preneed payments reduce last-minute cost-based decision changes.

    • Helps avoid bad debt through payments made in advance.

  • Family Benefits:

    • Provides a positive experience for survivors carrying out final wishes.

    • Aids informed decision-making without emotional pressure.

    • Financial burden relief for survivors; options for Medicaid eligibility.

  • Preneed Fulfillment Metrics:

    • Aim for a higher percentage of new preneed contracts written compared to those fulfilled.

    • Evaluate growth in new preneed contracts against trust withdrawals.

  • Unfunded Prearrangements:

    • Written requests must be financially supported to be valid.

    • Families are more inclined to follow through on wishes that have been paid for.

  • Choosing Insurance for Funeral Homes:

    • Company fitness is paramount.

    • Ensure growth rates and payment structures are regularized and dependable.

  • Trust Considerations:

    • Familiarity with varying state laws on trusts is essential.

    • Understand refund policies, percentage compliance, and tax liabilities for trusts.

  • Selling Preneed:

    • Regulations differ by state regarding who can sell preneed arrangements.

    • Compensation structures for funeral directors and independent contractors vary.

  • FTC Compliance:

    • FTC Funeral Rule applies to all providers of prepaid services.

  • Marketing Strategies for Preneed:

    • Aggressive marketing tactics like direct mail, ads, community sponsorships.

  • Financial Health of Preneed:

    • Ensure more money is deposited into trust accounts than withdrawn.

  • Final Considerations:

    • Preneed may not suit all families or funeral homes based on financial or community factors.