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
guaranteed prices
Installment Payments and Preneed: At the cost of the seller
By Bill Stalter on
A preneed client recently complained about preneed shortfalls they were experiencing on trust funded contracts. We went back to our 2014 blog post (The Factors Contributing to Preneed Shortfalls: Investment Return and Operator’s Performance Costs) and began an analysis of those factors. Since the ‘culprit’ is usually poor investment returns, we started with…