Q: What if my heir(s) or designated representative wants to cancel the trust-funded preneed funeral contract? A: More than half of states have enacted a personal preference law, a statutory obligation for survivors to honor the written wishes of the deceased (with the exception of cremation in a few states). Thus, a customer can specify that the arrangements in the preneed contract must be followed. ● If purchasing a trust-funded product, ask how the funds are secured. ● The written contract must state under what terms the contract may be canceled and how much the consumer will be refunded. ● The written contract is required to include to what extent the preneed seller or general provider guarantees the selected merchandise and service prices. If the prices are not guaranteed, the preneed seller should explain who is responsible for paying additional monies that may be due at the time of the funeral. ● Thoroughly consider before accepting an irrevocable agreement (a contract that cannot be canceled). Irrevocable agreements may limit one’s flexibility. ● Keep a copy of the plan in a safe place. Inform a close family member or a friend that arrangements have been made and where these documents are kept. homes may also choose to provide an itemized statement when making these arrangements. Q: What is meant by guaranteed and nonguaranteed prices? A: Some preneed arrangers may agree that certain prices are guaranteed. Some may guarantee the price of the total package. Other funeral homes may not guarantee any prices. Guaranteed prices are those that will not increase at the time of an individual’s death. Basically, this means that the funeral arrangement for those items will be covered by, and will not exceed, the funding and the interest it earns. Nonguaranteed prices are those that might increase or decrease. The nonguaranteed prices may be written in at the time of the contract, with an understanding that the price is an estimate only and may increase or decrease. A settlement to that effect may have to be made with one’s family or representative after his or her death. Q: Can the preneed arranger and I negotiate a projected charge for the nonguaranteed items based on the rate of inflation? A: It is entirely up to the preneed arranger to inform the consumer of the funeral home policy in that regard. Q: Is a casket required? A: A casket is not required for direct cremation. If arranging a direct cremation, a customer may use an unfinished wood box or an alternative container made of heavy cardboard or composition materials. The customer may also choose a canvas pouch.
Q: What if I cancel my trust-funded preneed contract prior to need? A: Once again, it depends on your state. Almost everywhere, purchasers have the right to terminate a revocable contract any time prior to use, and the provider must refund your money within a specified time period. However, in some states the provider may retain some of the money. Consumer tips ● Be certain the funeral home, mortuary, cemetery, or licensed insurance producer is licensed with the state as a preneed contract seller. ● A friend or family member should accompany the consumer when making the preneed funeral arrangements. ● Ask the preneed seller for a detailed price list of services and merchandise before selecting anything. ● Before signing a preneed contract, read it carefully and understand all provisions. Ask questions. ● If purchasing a preneed funeral arrangement, the consumer should receive a copy of the contract that explains his or her rights and obligations, along with a written statement of all services, merchandise, and prices of items that have been purchased. ● The contract must clearly state how it is funded (life insurance or trust-funded), as well as the terms of payment. Pricing Q: How will I know that the prices of items I select are the same for everyone? A: The funeral home maintains a general price list as well as a casket and an outer burial container price list. Your preneed arranger will provide these lists before beginning arrangement discussions. When these discussions are finished, you will be given a copy of the preneed contract on which charges will be listed. Charges will only be made for the items selected. If there are any legal or other requirements that mandate the purchase of any items not specifically requested, the preneed arranger will explain the reason for these charges in writing. A consumer may ask a funeral home to purchase certain items or make special arrangements. If the funeral home charges for these services, the consumer must receive an explanation in writing. The charges for these services may be higher than if an individual or a family purchased them directly. At the time of an individual’s death, the family or estate will be given an itemized statement, which will list all of the specific charges. This is a requirement of the Federal Trade Commission. Although not required to do so, some funeral Caskets and containers Q: Do I have to buy a vault or a container to surround the casket in the grave? A: In most areas of the country, state and local laws do not require the purchase of a container to surround the casket in the grave. However, many cemeteries ask that you have such a container to support the earth above the grave. Either a burial vault or a grave liner will satisfy these requirements if they exist.
EliteLearning.com/Funeral
Book Code: FTX1625
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