Wall Street Bundling Life Insurance to hurt Funeral Industry-YourFuneralGuy

The sale of life insurance policies will hurt the funeral industry

Because of the severity of the recession banks have been buying up life insurance policies. Some of the big banks are bundling them together just as they did debt before the Wall Street Crash a year ago. These  Wallstreet banks are selling them as bonds.

This is a risky investment scheme. This will hurt the funeral industry because in the majority of cases life insurance is the vehicle that folks pay for a funeral.

This is another bad sign for the traditional funeral industry in the USA.

From the New York Times:

“The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.

The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money.”

This  will mean lost income for the Funeral Business.

Funeral industry|Funeral Blog by Your Funeral Guy.

The Funeral Industry takes another hit

Now is the Time for NFDA Board Members to weigh in on Randal L.Earl.-yourfuneralguy

The NFDA Executive Secretary is a key player in Illinois Funeral Scandal. He HAS SHOWN NO REMORSE.

The NFDA Executive Secretary Randall L Earl is closely tied to the Illinois Funeral Directors Funeral Scandal. He was IFDA President when the decline of the IFDA Preneed Trust Began. Earl has been mamed in every lawsuit in the Illinois Funeral Directors Association scheme where nearly 100 million has been lost, misappropiated.

Randal L Earl   is the  named in four IFDA Lawsuits. He may well become an albatross around the neck of the National Funeral Directors Association. His involvement in the transfer of IFDA Preneed Trust funds  to the Defunct Illinois Funeral Directors Association needs to be addressed.

Randall L Earl is speaking this week at the Illinois Funeral Directors Asosociation Convention. This is evidence that the IFDA does not want to change and address their Scandal. It indicates an unwillingness to move to an honest Funeral Directors Association in Illinois.

It is time for NFDA Executive  Board members to weigh on te NFDA secretary who is involved in a major funeral scandal.

Some NFDA Board Members-Source nfda.org

John D. Reed Sr., CFSP, CPC
2008-2009 President

William C. Wappner, CFSP
2008-2009 President-elect

Patrick E. Lynch
2008-2009 Treasurer

Michael R. St. Pierre, CFSP
2008-2009 Immediate Past President

Christine Pepper, CAE
NFDA Chief Executive Officer

Hopefully the Executive board of the NFDA will weigh in on Randall Earl and ask him to resign.

Funeral Industry| Funeral Blog by Your Funeral Guy.

Revealed Differences between Funeral Preneed Insurance Scandals-YourFuneralGuy

Best not to purchase preneed,too much behind the scenes SHHH and Scandal

Preneed  or Prepaid  funerals has had major disasters. In 2008 the NPS  disaster took place came to a breaking point on September 22nd 2008.

In 2oo9 the Illinois Funeral Directors Association Historic Preneed Scandal came to ahead with the revelation of Lawsuits and major press coverage around February 1st.

NPS  and IFDA losses are estimated to be between 1 Billion and 1.6 Billion. The Funeral industry is often quoted as being a 15 billion dollar industry. So the loss in at National Prearranged services and IFDA s Preneed Trust is close to 10% of the funeral industry’s income.

Both the NPS and IFDA had ponzi like insurance scams. There are  main differences between the two is size. NPS lost over 1 Billion+ and the IFDA 59+million.

The IFDA used special key guy insurance life insurance policies. NPS used whole life and term insurance policies.

At NPS there was state investigations going back 10 years and more. Sure hope the IFDA mess investigations does not carry on that long.

In the NPS scenario it was known who the major players were and they were named often. This is not true of the IFDA Preneed Trust mess.

A good summary of the National Prearranged Services Scandal appeared in the State Journal Register over the Weekend.

“Consumers would buy funeral contracts from NPS that were funded with life insurance policies that paid out to funeral homes upon death. Under state laws, funeral homes that agreed to do business with NPS were obligated to pay for funerals if something went wrong. And things went horribly wrong last year…..The insurance policies were issued by two Texas-based companies affiliated with NPS. At some point, regulators say, policies were switched from whole life insurance, which has some value so long as premiums are paid and remains in force until death, to term life insurance, which expires after a set period of time and has no value unless someone dies. Financial ruin ensued.“

Any time funeral funds are misappropriated some one has to pay. It is usually the Funeral Director and the Funeral Consumer.

Sadly these events have moved the public away from trusting funeral professionals.

Funeral Industry|Funeral Costs Blog by Your Funeral Guy