People are hurt when they do not get what they paid for in the death of a loved one.
When writing about Funeral $$ it becomes easy to forget that there are faces behind those funeral dollars. The bigger the numbers the more people are involved. So how will the folks be notified of losses in the funds they prepaid for funerals?
People are terribly hurt at the time of death when they discover the prepaid funds are not there.
“There must be an effort to notify individuals of their investment’s status and exactly what will happen when funeral bills arrive.“-the State Journal Register newspaper.
“A question was asked on a blog.“John Duggan has a point, and that’s what concerns regulators in Illinois, Missouri and Texas. Who will be blamed when the consumer does not get the benefit of their preneed contract?”
The Illinois Funeral Directors Association and the Comptroller in that State say that the Funeral Home must cover the losses. But what happens to those non guaranteed policies where the folks lost money?
Many Times folks in Illinois were told not to worry about the non guaranteed policies because the IFDA was paying a good interest on their policy. Well misappropriation and abuse sent that out the window. Who will notify these folks of their losses?As reported here, in the State Journal Register and the Chicago Tribune Lynda Canger of Lake Zurich did not get notified.
Who will notify folks of their preneed losses before the time of death?
Funeral Industry Funeral Costs Blog by Your Funeral Guy
In a November 2008 meeting at the State Capitol with an audience of State Senators and representatives of the Illinois Office of the Comptroller and about 45 funeral home owners from central IL. a verbal edict was given to the FH owners that “NO CONSUMER IS TO BE HURT / INJURED FINANCIALLY IRREGARDLESS IF THE CONTRACT WAS GUARANTEED OR NON GUARANTEED”. IT IS UNDERSTOOD THAT A NON GUARANTEED CONTRACT IS WRITTEN TO ACCOMMODATE THOSE FAMILIES MAKING INSTALLMENT PAYMENTS, PLACING LUMP SUMS OF MONIES IN A TRUST WITH NO MERCHANDISE OR SERVICES SELECTED, OR ASSIGNING A LIFE POLICY OVER TO THE FH. AND ADDING ADDITIONAL CASH TO COVER MISC. ITEMS.
Here is where funeral home owners need to step up to the plate and become men / women of their word and deliver the services and merchandise paid for on the funeral home side of things. Cash advance items that the FH has no control over or doesn’t profit from. Every family that I worked with understands this concept and has been in a position to pay for the overages of those items allowed for. A suggestion for my colleagues it to place on their preneed contracts for cash advances is “Allowances for flowers$…., Clergy$….., Grave opening $…, etc. In regards to guaranteed contracts, FH owners need to honor them in full as bitter of a pill as that is to swallow. (34% write down)
This whole deal is far from over. The derivative lawsuit filed by Calvert, et al, still has to be played out in court. The bottom line with that is to make all the accounts whole again, including the ones that have been paid out.
Funeral Homes need to do the right and ethical thing and stand behind the contracts they wrote or acquired by acquisition of another firm they’ve purchased. The Illinois consumer is not be hurt during this time.
We have made a solid attempt to notify our families affected with both the NPS and IFDA Tax Exempt trust accounts. Fortunately, they are few, as most of our trusts were in the taxable trusts, and relocated before write downs appeared. Most families have been very understanding and aren’t surprised with economic conditions. (an unfortunate saving grace for us.)
You sir are to be commended. I am thankful that you have made strong efforts to contact your NPS and IFDA Tax Exempt accounts.
However just because 45 Central Illinois Funeral Home owners receive an edict from the comptroller in front of legislators may have little effect on the actions of Funeral home owners.
My political science education and experience as lobbyist- activist brings this home.
Folks who have had their policies devalued need to be notified about what is there in their policies, what they have lost in terms of interest and what will be covered by their funeral home.
A third party needs to make this happen.
With the loss of integrity in this Scandal that is the least that should be done.
Your Funeral Guy