Tag Archives: life insurance

At Your Funeral, “the guy or gal” is important, Not the resume

30 Aug

At your funeral your work history is not all that important. Every heard of  the deceased’s resume being passed out at Funeral? Will your company buy your tombstone?Yes maybe you get life insurance through work. People from work may show up at our funeral. But what is really important is how you are remembered.

Think about what people are going to say at your funeral, assuming anyone shows up. If you are too busy working to be a family man, or at least spend time with people, what is the point? Your family loves you and your  friends want to have some fun and let loose every so often, so why are you still at work? Do you enjoy living a boring life, or risk having your tombstone bought by your company for 78 years of service?

Funeral industry|Funeral News|Funeral Blog by Your Funeral Guy

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Another Funeral Scandal Indictment(NPS)-YourFuneralGuy

16 Oct

National Prearranged  Services pulled off their frauds with Life Insurance policies.

National Prearranged Services pulled off their frauds with Life Insurance policies.

The National Prearranged Services Scam, will cost between 600 million and 1.6 billion dollars according to different estimates. It is by far the largest funeral Scam in the nations history.The indictments will continue finding their way to the founding Cassidy Family(owners). This preneed insurance  scandal went on for decades.

The tragedy here is three fold. 1)Funeral directors have to complete paperwork to get paid for these contracts from State Assurance Guaranty Agencies. Sometimes the reimbursement is not complete. 2)This is a massive taxpayer expense to pay on these contracts. These Costs get passed on to the consumer and the cost of traditional Funerals is raised.

And (3) The distrust of Funeral Directors and the Funeral Industry multiplies exponentially.

From St. Louis:

In August, NPS chief financial officer and director Randall Sutton, 63, of Chesterfield, was indicted on mail fraud, money laundering, and wire fraud charges.

Thursday, Sharon Nekol Province, 65 of Ballwin, was charged in a superseding indictment with five felony counts of mail fraud.

Province was president and office manager of NPS and held a position with an affiliated company.

NPS marketed the prepaid contracts as a way for consumers to ensure that they would not burden heirs with the cost of their funerals. The price they paid for a contract was used to fund a life insurance policy that would pay the actual funeral costs. But the indictment says that company executives and others knew as far back as 1998 that the anticipated costs were exceeding the anticipated insurance income by $98 million.

via www.stltoday.com

Funeral Industry|Funeral blog by Your Funeral Guy.

Merrill Lynch Broker “GETs OUT OF JAIL FREE” in Illinois Funeral Mess-YourFuneralGuy.

16 Sep

In the Illinois Funeral Directors Scandal many folks are involved. This post is about only one.

In the Illinois Funeral Directors Scandal many folks are involved. This post is about only one.

An  ex Merrill Lynch Insurer Broker has given up his insurance license in the Illinois Funeral Directors Association  Ponzi Scandal. This is in return for NO MORE CHARGES and NO  ADMISSION OF GUILT.

Key Guy Life  Insurance policies were a key element in the IFDA Preneed Ponzi Scheme. Current losses are over 100 million in that scheme. At the end of 2008 losses estimated in the preneed trust fund  were found to be 59 Million. In February 2008 loses were 40 million . Keep in mind this is all the people of Illinois Funeral Trust Money.

The Insurance Broker, Edward Shainker, and his attorney cut this deal with the State of Illinois,Department of Insurance.

Snippet:

From the Chicago Tribune:

“A former Merrill Lynch broker in Springfield has agreed to surrender his insurance agent’s license and pay a $100,000 fine to resolve state allegations that he provided bad investment advice to the Illinois Funeral Directors Association.

The Illinois Department of Insurance announced the disciplinary action Wednesday against Edward Schainker, who had worked at Merrill Lynch since 1983. Online records at the Financial Industry Regulatory Authority Inc., which regulates securities firms, show that his employment ended in July.

As part of the settlement, Schainker denied any wrongdoing. His attorney, Phillip Stern of Chicago, said, “We don’t believe Ed violated any insurance laws but we felt a settlement was in his best interests.”

In a mysterious turn of events that no one not even  the Press is talking about  is that Merrill Lynch is no longer to be the Trustee of the IFDA preneed Trust.”

Funeral Industry Funeral Blog by Your Funeral Guy.

Wall Street Bundling Life Insurance to hurt Funeral Industry-YourFuneralGuy

7 Sep
The sale of life insurance policies will hurt the funeral industry

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

The Funeral Industry takes another hit

Largest Funeral Corp Partners w/another Insurance -YourfuneralGuy

18 Aug

3017751065_3596eafc03The worlds largest funeral corporation Service Corporation International(SCI) has partnered with yet another insurance company.

SCI’s numbers have been in almost a free fall for Fiscal 2009 and they have joined another Insurance Company at the hip to stop the decline. Insurance Companies have been hurting dramatically due to the recession and so have the Funeral Corporations. The latest Company SCI has partnered with is United Home Life Insurance. Previously the have partnered with SLAICO and MATRIX DIRECT.

From PR Newswire:

United Home Life Insurance Company and Service Corporation International (NYSE: SCI) announce the creation of a partnership to enhance the products currently offered by United Home Life for agents. Through the partnership, independent agents can utilize the Dignity Planning(TM) tool to increase their profitability by offering clients the ability to turn their policy into a complete end-of-life plan. Dignity Planning is unlike any other end-of-life planning tool in that it was designed for financial service professionals and provides agents with real-time needs analysis and pricing, as well as inflation and aged-based life expectancy costs of specific elements rather than generic national averages.

Be sure to keep control of your own life insurance policy and do not turn it over to Dignity Planning

Funeral Industry|Funeral Blog by Your Funeral Guy

Dignity Logo Pic on flickr under the creative commons license  at

Jeremy Brooks’ photostream

Merrill Lynch Holding “Fire Sale” in Illinois funeral mess-YourFuneralGuy.

16 Jun
The Illinois Funeral Directors Association preneed scandal has brought great grief to the folks in Illinois.

The Illinois Funeral Directors Association preneed scandal has brought great grief to the folks in Illinois.

Merill Lynch(MLBT) is holding a “Fire Sale of IFDA Preneed Trust Life Insurance Policies.”  This is another factor in the demise of the Illinois Funeral Directors Association.  As the trustee of the assets of the IFDA Preneed Trust, Merrill Lynch has  the right to do thi:. Hold the fire sale and cash out the life insurance policies involved.

The more the Illinois Funeral Directors Association preneed policy mess spirals out of control the more the consumers will pay in raised funeral prices. New problems for the going to the grave IFDA appear each week.

According to the State Journal Register 06.15.09.

“Rather than risk getting no money at all, the trustee{Merrill Lynch} for a troubled pre-need funeral fund is surrendering life insurance policies for cash value, worsening already steep losses in a fund that’s supposed to pay for funerals for more than 40,000 people in Illinois.”

In it’s amended lawsuit the six Illinois funeral directors suing the IFDA named some of the insurance companies whose policies are being written down. The argument here is that there is no insurable interest for the IFDA in the lives of the funeral directors lives covered. Insurable interest is the responsibility of the the insurance company selling the policy.

The Illinois Funeral Directors Association Scandal Continues to bring great loss and grief to the State of Illinois.

Your Funeral Guy

Life Insurers offer Funeral Biz Services-Your Funeral Guy.

20 May
Wall Street Journal refered points out life insurers are entering the funeral biz.

Wall Street Journal points out life insurers are entering the funeral biz.

According to the Wall Street Journal several Life insurance Companies are now offering funeral industry related services. This was made apparent Monday when immediately after receiving a federal bailout the Hartford Insurance Company announced it was teaming up with EVEREST -a  funeral concierge and planning service.

Snippet: from the  May 19th Wall Street Journal Article:“Legal help for probate and professional help for funeral planning are among the services being bundled into group-coverage packages by a growing number of companies. Hartford Financial Services Group Inc.; Prudential Financial Inc.; ING Employee Benefits, a subsidiary of ING Groep NV; and MetLife Inc. are among those joining the trend.”

There is a new emerging funeral industry as the traditional funeral business is buckling under economic pressures and life insurance companies  are taking a role in funerals is just a small part of this. Many time times the life insurance company refers to this as end of life services.

Funeral Industry| Funeral Blog by Your Funeral Guy.

Sources:

Details are at the Wall Street Journal online. The life insurance companies always have been closely associated with the funeral industry in that cashing in a life insurance policy is how many funerals are paid for. More information on the Hartford-Everest team up  can be found here.

Wall Street Journal pic from flickr under the creative commons license from

Enrico Fuente’s photostream