preneed funeral planning where to start?????
DESCRIPTION
Preneed Funeral Planning Where to Start?????. Kevin Hazlip, CFO Hiers -Baxley Funeral Services Highland Memorial Park Cemetery. Definition of Preneed. Why people prearrange. Who are the ones prearranging. How do you prearrange. What is the definition of Preneed??. The answer is----- - PowerPoint PPT PresentationTRANSCRIPT
Preneed Funeral PlanningWhere to Start?????
Kevin Hazlip, CFOHiers-Baxley Funeral Services
Highland Memorial Park Cemetery
Definition of Preneed
Why people prearrange
Who are the ones prearranging
How do you prearrange
What is the definition of Preneed??
• The answer is-----• It is somewhat unclear
Technical
• Dictionary.com• An adjective• arranged or made available in advance of
eventual requirements
Federal Government
• Funeral Homes regulated by the FTC• 16 CFR Part 453 ---- Funeral Rule• Preneed is not defined
State Government
• Funeral Homes regulated by the DFS• 497.005 definitions• Preneed is not defined• However a preneed contract is defined• Preneed contract means any arrangement or
method, of which the provider of funeral merchandise or services has actual knowledge, whereby any person agrees to furnish funeral merchandise or service in the future. (blah, blah, blah)
Industry Definition
• In our industry we can basically sum it up in two words------
•••••••••••••••••••••••••••••••••• NERVE GAS
Why people prearrange To express their own wishes, known
only to them To relieve their family from the stress of
making decisions/arrangements while in shock and grief
To save their family from an unexpected financial burden at a time when it may be very difficult
To benefit by “locking in” today’s funeral price
Why more people prearrange each year
0
2,000
4,000
6,000
8,000
10,000
1969 1979 1989 1999 2009
Funeral Costs Avoid INCREASING COSTS and relieve FINANCIAL BURDEN
from surviving family
Over 100 things to do or decide
• Doctor• Funeral Director• Banks• Clergy• Unions & Fraternal
Organizations• Newspaper• Friends• Employer
• Coroner• Cemetery• Insurance Companies• Other Financial
Institutions• Relatives• Pallbearers• Singer• Organist
Contact...
To Do...• Provide deceased’s vital statistics• Complete needed paperwork• Provide addresses of people to notify• Answer phone calls and letters• Meet several people to complete details• Greet friends/relatives who come by or call• Prepare house for guests• Arrange other lodging for guests• Prepare funeral car list
Over 100 things to do or decide
• Funeral Service• Casket or Urn• Clothing• Music• Church• Time/date of
visitation• Location
• Burial Space• Vault• Flowers• Catering/food• Time/date of service• Transportation• Acknowledgement
cards
Choose ...Over 100 things to do or decide
Over 100 things to do or decide
• Doctor• Hospital• Medicine/Drugs• Funeral• Interment Fee• Clergy• Singer• Clothing
• Nurse• Ambulance• Cemetery Property• Organist• Florist• Memorial• Transportation• Food/Catering
Arrange to pay for ...
Who are the ones prearranging?
Sex
MaleFemale
Marital Status
Married
Widowed
Not Married
0 10 20 30 40 50 60
Percentage
Ages of people who prearrange
Young
Boo
mers 55
Leadin
g Edg
e Boo
mers 5
5-64
Silents
65
-85
GI Gen
eratio
n 86+
020406080
Percentage
Percentage
Main reasons people decided to prearrange• 3% - Recently prepared/updated will• 4% - Recently worked on planning estate• 4% - Medicaid spend down• 5% - Have serious/terminal illness• 7% - Received call/mail about prearranging• 15% - Finally had money to do it• 15% - Spouse wanted to prearrange• 16% - Finally knew arrangements wanted• 23% - Family member/friend died recently
Reasons for prearranging
• Making decision with spouse• Eliminate financial burden from spouse• Eliminate emotional burden from spouse• Choosing desired arrangements• Locking in Prices• Eliminate financial burden from kids• Fulfilling responsibility• Eliminate emotional burden from kids
How do you prearrange?
How families pay for funerals
• Savings in advance• Savings later• Existing regular insurance• Taking out a loan• Selling assets• Family bears the burden
Methods for paying for prearranging
• Insurance Funded • Trust Funded
Insurance Funded
Advantages• Immediate Coverage• Annual Growth• Portability• Price lock
Disadvantages• Pmt amount on multi pay• Insurance company is go
between• Limited refundability
Trust Funded
Advantages• Managed Portfolio• Price lock on single pay
Disadvantages• Lack of portability• Limited refundability• Price lock on multi pay
Final Thought
Guaranteed Pricing – Is it over ??