It does appear that consumers(the public) seem to be lowering their Funeral Cost by turning away from preneed. The economy seems to be the cataylst.
People are watching how their cash is spent. The Latest SCI figures show a deficit in cemetery preneed sales. SCI (Service Corporation International) is the largest Corporate Funeral Home Provider in the United States They had to change their future financial forecast due to diminished Preneed Sales.
Funeral directors need to be very cautious and show due diligence before enlisting a customer in a guaranteed or non guaranteed preneed contract.
This according to deathcarelaw.com
“Has the economy caused consumers to put preneed on a back burner? Perhaps, but funeral directors can anticipate an increase in spend down inquiries. It is hard to turn prospective business away, but funeral directors need to consider how these transactions do not lend themselves to insurance funding or the conventional guaranteed preneed contract.”
The bottom line is that preneed-prepay might not be good for the Funeral Director or the consumer especially now.
In light of the combined Funeral Industry Loss of National Prearranged Services and the Illinois Funeral Directors Association(IFDA) of 1.6+billion dollars due to preneed scandal, if you go to a funeral home and they try to pressure you into a preneed agreement, please do not participate.
I strongly advise the public not to prepay or do preneed insurance, guaranteed, or non guaranteed.
Funeral Industry/Funeral cost blog by your funeral guy.
You can follow up on due dilegence here
SCI FACTS at Yahoo News
Disclaimer: This blog post assumes the figures at KansasCity.com are correct.