Funeral homes selling Preneed As a Good Investment|are lying|Your Funeral Guy

14 Jun

Funeral Homes selling Preened as an investment are lying.  To prepay a funeral today, “LOCKING IN TODAY’S PRICES FOR YOUR FUNERAL TOMORROW” is a lie. The current economic environment in the world makes that statement a falsehood.  No Investment vehicle can be guaranteed that since the Wall Street Crash of September 2008.

Firstly, Prepaid funerals or(preneed) has always been  a purchase of funeral goods and services.In the past and many times the funds are placed by the funeral home, funeral director or insurance company in a special bank account.

Depending on the pre need Contract and state regulations the funds used to purchase sometimes can be placed in an investment vehicle. The Track record of indivudual funeral homes and others doing this though is not good.

When this has happened there are examples of bad outcomes—the local funeral home in the news, funeral associations(example- IFDA Illinois Funeral Directors Association preneed trust ponzi scheme) and funeral insurance companies(-Example-NPS-National Prearranged Services)

Funeral industry|Funeral News Funeral Blog by Your Funeral Guy

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2 Responses to “Funeral homes selling Preneed As a Good Investment|are lying|Your Funeral Guy”

  1. Travis August 12, 2011 at 5:04 pm #

    I wouldn’t accuse a funeral home of lying because they are trying to build future business for their company. From your short post it seems to me like you think that the funeral homes/insurance companies are trying to deceive potential customers. While it is true that the owner of the policy did not lock in today’s rate technically, what they do have is a service that is completely guaranteed by the third party insurance company. Even if the funeral home that the customer made arrangements with is no longer in business, the policy is completely transferrable nationwide. There are many benefits that I have personally seen and witnessed by those that choose to plan ahead. Emotional/over spending is perhaps one of the most important of these. If you disagree with pre-need, that is completely fine and your opinion, but please don’t make it sound like agents who sell these policies are trying to deceive and lie to customers, because that is completely false.

  2. Tami Edwards October 24, 2011 at 8:31 am #

    The funeral home you pre-pay through is taking the risk of investment. In todays economy funerals increase in price 4 – 6 % annually. Where else can you get 4 – 6 % dividend on your money that is tax free? The “locked in” phrase should never be used. The monies must be placed in a third party investment that accrues dividends, it is the funeral home hoping the dividends will keep up with inflation to the time of death. The person responsible for finalizing the funeral is guaranteed no additional cost for FUNERAL HOME expenses. The funeral home accepts whatever has accumulated in the fund as payment in full for FUNERAL HOME expenses. There are “cash advance items” which the funeral home can not guarantee because they are not funeral home costs; opening/closing of grave, obituaries, outer container delivery, death certificates, etc.

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