It only took 15 months, but the Missouri State Board finally approved a rule to clarify what fees a preneed seller may charge when offering a guaranteed price contract to consumers. Low investment returns from insurance and trusts forced many funeral homes to stop offering guaranteed price contracts to consumers. Funeral homes’ cost increases were… Continue Reading
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A Treasury Market Out of Whack: Preneed Insurers and Preneed Sellers
Posted in Insurance Funded, Investments, Preneed, Preneed Development, Preneed Development, Preneed Shortfalls, Price Protection, Price Protection, UncategorizedIn our last post, we used Allan Sloan’s article on the Treasury bond market to highlight the investment exposures to death care trusts. Today we will look at how the Treasury market is also impacting funeral homes that rely upon insurance for preneed funding. Mr. Sloan’s article alluded to insurance companies being required by statute… Continue Reading
Preneed Turf War: Pennsylvania Funeral Directors and StoneMor
Posted in Cemeteries, Cemetery Development, Legislation, Preneed, Preneed Development, Trust FundedIn an unusual move for a death care regulator, the Federal Trade Commission weighed in on the preneed turf war that has erupted between Pennsylvania funeral directors and StoneMor Partners. At the request of the chairman for a Pennsylvania legislative committee, the FTC responded with a detailed letter warning against various bill proposals aimed at… Continue Reading
The Factors Contributing to Preneed Shortfalls: Investment Return and Operator’s Performance Costs
Posted in Guaranteed, Insurance Funded, Non-guaranteed, Preneed, Preneed Development, Preplanning, Price Protection, Price Protection, Total Return Trust, Trust Funded, UncategorizedWhen the Federal Reserve recently announced the end of the quantitative easing program, it did so with a hint that any increase in interest rates could be a considerable time off. Several global factors may now cause interest rates to remain at unprecedented lows for longer than what the Fed had suggested last December. As… Continue Reading
Another factor in the cremation trend: preneed insurance premiums
Posted in Cremation, Guaranteed, Insurance Funded, Preneed, Preplanning, Price Protection, Price ProtectionOur preneed provides peace of mind by freeing your family from the burdens of rising funeral costs and from making difficult decisions during their time of grief. Since the inception of the transaction sixty years ago, that statement has defined preneed marketing. Even the AARP recently embrace the peace of mind concept. The inflationary protection… Continue Reading