Reasons For Pre-Need
-Make individual wishes known to family
-Make intelligent & informed decisions w/less emotion involved.
-Relieve survivors of financial burden
-Reduce personal assets for medical eligibility (Spend-Down)
A contract which may be terminated by the purchaser at any time prior to the death of the beneficiary with a refund of the monies paid on the contract as prescribed by state law.
A contract for the future funeral services which CANNOT be terminated of canceled prior to the death of the beneficiary.
A contract where the funeral home guarantees that the services and merchandise will be provided at the time of need for an amount not exceeding the original amount of the contract plus any accruals, regardless of the cost of providing the services and merchandise at the time of the funeral.
A contract in which the funeral home only agrees that the amount prepaid plus any accruals will be credited to the balance due. However, the price of the funeral will be whatever the current price is for the services and merchandise at the time the death occurs.
Federal Trade Commission
-Presentation of Price List
-Permission to Embalm
Alteration of Pre-Funded Contracts:
Minor changes in Merchandise or Services
Have no effect on guaranteed contract prices.
Alteration of Pre-Funded Contracts:
Unavailability of Services or Merchandise
Must allow substitution of similar or higher quality services or merchandise
Example of 3rd party beneficiary Contracts
.-Parents of a mentally impaired adult make pre-funded arrangements for a traditional funeral service
-Contract beneficiary is the mentally impaired adult
- Contract will be honored at time of death
-Although contract was made by the child's parents, they are not the direct contract beneficiary upon the child's death.
-Account established by one individual to be held for the benefit of another
-Creates a fiduciary responsibility
-As a method of payment of funeral expenses, money paid to a funeral home for future services is paced in an account with the funeral home as trustee for the benefit of another
Master Trust Account
-monies from all pre-funded arrangements placed in one account with individual record for each account.
-Provides a higher return on investment (interest) and is allowed by law.
-Similar to purchasing automobile or life insurance policy.
-It can be paid in full or monthly premiums may be allowed until the contract price is paid in full. -It is typically funeral specific, with funeral home as beneficiary.
-Best choice for portability
-Similar to a trust account.
-The monies from all pre-funded arrangements are placed in one account and it draws interest. -The interest pays inflationary increases in funeral prices.
Reduction of a dead human body to inorganic bone fragments by intense heat in a specifically designed retort or chamber
Furnace or retort for cremating dead human bodies. The facility which houses the cremation chamber
-The container required to transport the human remains to the crematory.
-It could be the casket used at the funeral or a special rigid leak resistant combustible box designed for cremation.
-The container will be destroyed during the cremation process.
-Placing the cremated remains in an urn or other container in preparation for final disposition. -Placing the urn or container in its final resting place.
-The reduction of the cremated remains to an unidentifiable consistency to facilitate inurnment and or to make the cremated remains acceptable for scattering.
-Depending on the pulverization devise used, very small bone fragments may or may not remain after processing.
-National average about 34-35%, Increases each year
-Highest rate in coastal and western states and Florida
Reason for Growth
-Public acceptance and higher level of education
-Relocation of elderly to the "sunbelt" states
-Immigrants who prefer cremation
Committal at Cemetery
-With a procession from funeral service to the crematory
Scattering Cremated Remains
-Spreading/releasing cremains as appropriate and allowed by law
-With or without cremains present.
-With or without funeral home personnel
-Appropriate and helpful acts of counseling or helping that comes after the funeral and final disposition.
-Also called Post Funeral Follow-Up.
Types of Aftercare
At Families Request:
-Formal or organized activities
-Grief support groups