Today it was revealed that IFDA members got free life insurance policies. It is another piece of evidence that some who where involved in the IFDA Preneed Trust fund paid themselves with a bunch of fancy perks.
It is a word of warning for those who turn their money over to funeral directors for their final expenses. They might just spend it on themselves. As in the case of the IFDA Trust they can keep some of the money for themselves. According to the Chicago Tribune April 7th 2009 on the “IFDA Preneed Trust”
“Funeral directors could keep a cut of the interest earned on the accounts.”
Who got the perks? Were their other perks? Did IFDA leaders get free life insurance policies?
Did the Current NFDA(National Funeral Directors Association) Executive Secretary Randall L Earl get perks? He is not talking.
What was the funding vehicle or how/if funds were transfered out of the trust were used to pay for the policies is not known. The likely candidate is IFDA Services, INC. Again from the Chicago Tribune.
“One type of policy used individual funeral directors as the insured. Schainker allegedly solicited funeral directors by offering them a free $25,000 life insurance policy that would be funded by the IFDA, the complaint said.
It’s not clear from the complaint whether consumer deposits were used to pay for the $25,000
The secretary of state charges that the solicitation violated the state’s insurance laws and constitute illegal payments.”
Does this mean that the IFDA made Illegal Payments?
THE LESSON FOR THE CONSUMER IS DO NOT PREPAY YOUR FUNERAL TO THE FUNERAL DIRECTOR.
Funeral Industry|Funeral Costs Blog By Your Funeral Guy. Funeral Director, Illinois and Virginia.
Corruption Starts here pic from flickr