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42 terms

Mortuary Admin test 3: Pre-Need, Cremation & Post Funeral

Mr.Layton Commonwealth Institute of Funeral Services
STUDY
PLAY
Pre-Planned Pre-Need
-No provisions for funding or pre-pament
Pre-Funded Pre-Need
-Includes provisions for funding or pre-payment
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)
Revocable contract
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.
Irrevocable contract
A contract for the future funeral services which CANNOT be terminated of canceled prior to the death of the beneficiary.
Guaranteed contract
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.
Non-Guaranteed contract
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.
Pre-need Arrangement Conference
Presentation & discussion of services and merchandise.
Federal Trade Commission
Requires:
-Presentation of Price List
-Permission to Embalm
-Mandatory Disclosures
72
Hours of cooling of period consumers have to change their mind and still receive a full refund.
Alteration of Pre-Funded Contracts:
Minor changes in Merchandise or Services
Have no effect on guaranteed contract prices.
Alteration of Pre-Funded Contracts:
Major Changes
Voids a guaranteed contract
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.
Trust Accounts
-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
Individual Trust Account
separate account for each pre-funded funeral arrangements
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.
Insurance
-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
Savings/Passbook Account
-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.
Cremation
Reduction of a dead human body to inorganic bone fragments by intense heat in a specifically designed retort or chamber
Crematory/Crematorium
Furnace or retort for cremating dead human bodies. The facility which houses the cremation chamber
Retort
Burning chamber in a crematory made from refractory bricks
Cremated Remains
The bone fragments remaining after the cremation process. (Not ashes)
Cremation Chamber
The mechanical device used to perform the actual cremation process.
Cremation Container
-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.
Final Disposition
The final resting place for the cremated remains
human Remains
The body of the deceased
InURNment
-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.
Pulverization Process
-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.
Cremation Statistics
-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
Texas Form Requirements
-Death certificate
-Burial transit permit
-Cremation authorization form
Cremation Service:
Traditional
Rites held at time of disposition of human remains with body present
Cremation Service:
Graveside
Service held with the final disposition of the cremated remains
Cremation Service:
Committal at Cemetery
-Like graveside
-With a procession from funeral service to the crematory
Cremation Service:
Scattering Cremated Remains
-Spreading/releasing cremains as appropriate and allowed by law
Cremation Service:
Direct Cremation
Body sent directly to crematory
Cremation Service:
Memorial Services
-With or without cremains present.
-With or without funeral home personnel
Aftercare
-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
-Seminars
-Grief support groups
-Holiday activities
48 hours
-Waiting period between death and cremation
Common Law State
-Texas