As you can read in this recent article from the Insurance NewsNet a plaintiff in Arkansas is alleging that Globe Life “routinely canceled small life insurance policies when confronted with claims”.  The article goes on to say that “The small policies, generally $5,000 to $20,000, are sometimes known as “burial” policies and commonly cover funeral costs, medical and other debts. They are popular in the South and Midwest, where funerals are a strong cultural tradition.”

In more information supplied from an Arkansas law firm the case was described in this manner:

“A class action lawsuit was filed against Globe Life in federal court in the Eastern District of Arkansas alleging that Globe Life routinely cancels or rescinds small life insurance policies—typically ranging from $5,000 to $20,000—when beneficiaries file claims. These “burial policies” are often purchased to cover funeral expenses, medical bills, and other final costs.

According to the complaint, Globe Life:

• Asks vague or overly broad health questions when selling policies.
• Later conducts exhaustive reviews of the insured’s medical history after death.
• Uses minor or unrelated health issues as a pretext to deny claims.

 

The compliant alleges these practices violate Arkansas law, which since 2011 has prohibited insurers from rescinding policies unless they can prove fraud or a material misrepresentation directly related to the cause of death.”

Funeral Director Daily take: From my perspective I’m under the assumption that policies that are known as “Burial” policies or “Final Expense” policies are not sold under the purview of what most funeral homes and funeral directors would label “PreNeed” policies.  That, however, does not mean that those types of policies are not sold by their companies for the purpose of paying for future Death Care expenses by general agents outside of the business of Death Care.

It also doesn’t meant that consumers don’t buy those policies with the idea that they will have their family use at least some of the insurance proceeds for Death Care expenses.

There are some big differences though between what I would suggest as proper PreNeed policies and some types of policies offered by companies as “Burial” or “Final Expense” policies.

In a nutshell I would look for a PreNeed policy to be of the “whole life” variety where it is not canceled because premiums got too expensive as a policyholder’s age increases.  Preferably for PreNeed policies it is my opinion that “Single Premium” whole life policies are best  —  there is no possibility of one of these ypes of policies lapsing for lack of premium payments.

Secondly, I would look to align with a company where once the policy was accepted under the terms of the contract the reason or cause of death would make no difference as to the claim payment.

Funeral Director Daily will watch this lawsuit play out and inform our readers what happens.  In the meantime I think it is imperative that consumers get life-time protection and assurances from the PreNeed policies sold through funeral homes.  It might be a good time to check on the policies and provider that your funeral home teams up with.

Related Article —  Arkansas lawsuit filed over canceled “Burial” life insurance policies sold by Globe Life.   Cision PR Newswire

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According to this recent article from Insurance News Net, an August decision from the U.S. District Court for the District of Montana will allow a 2024 filed lawsuit to proceed for Montana funeral directors who claim a “premium financing scheme cost them millions”.

• Again, according to the article, the plaintiffs operate the Stevenson and Sons Funeral Homes in Miles City, Montana.  The family alleges they were misled into purchasing high-risk financial products that caused substantial financial losses.

• The plaintiffs also believe that had they been advised of what they now believe is a greater financial risk of the policies a financial catastrophe could have been avoided.

• The lawsuit was initially filed in July 2024 and lawsuit centers on the sale of $67.5 million worth of premium-financed life insurance policies. Defendants include MassMutual Life Insurance Co. and Penn Mutual Life Insurance Co.

• According to the article, the debt service on the premiums and the premiums paid have outgrown the value of the policies by $8 million.

• With this recent decision by the District Court judge, the lawsuit continues to move forward.

Related —  There is more information on this lawsuit that can be found, including a very good “Case Overview”, at the Beck, Amsden, and Staples PLLC website that is dated August 27,2025.  You can access that website here

Related — Here is the definition of “Premium-financed insurance policies” as given from Gemini Artificial Intelligence:

“A premium-financed life insurance policy involves borrowing from a third-party lender to pay the premiums for a large life insurance policy, typically for high-net-worth individuals, allowing them to keep their own capital invested while securing the coverage. The life insurance policy itself, and its cash value, serves as collateral for the loan. The borrower then repays the loan with interest, anticipating that the growth of their invested assets or the policy’s cash value will outperform the loan’s interest rate.”

 

Related — Here is the website for the Stevenson and Sons Funeral Homes

Funeral Director Daily take:  I’ll have no comment on the merits of this case on either the plaintiff or defendent side.  I’ve included this information in today’s Funeral Director Daily article simply under the “There’s probably something to be learned from this event” banner.

In my opinion, and I’m a licensed life insurance agent, life insurance in its differing forms, and the methods used to pay for the coverage can be a very complicated business transaction.  It can also be a very useful tool for many financial situations.

Over my life I’ve owned policies and found suitable uses for term life insurance, whole life insurance, universal life insurance, single premium life insurance, and period certain annuities.

Now that I’m aware of this case it will be interesting following it to see how it turns out.  I’m hopeful that I can let Funeral Director Daily readers know how it all works out as the matter proceeds through America’s legal system.

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“A servant’s attitude guided by Christ leads to a significant life”

Grief Dog Lawsuit | FFFW 238

Y’all, it’s May 23rd. This is the only Friday that falls on the 23rd this whole year. So, this is our Jordan day. You only get one shot—so wear your black shoes, stick your tongue out when you’re focused, and make bold moves in the prep room today. Legends aren’t born—they’re embalmed with precision and then handed a clipboard to run the place.

Introducing The Memo by MemoryShare

MemoryShare, the #1 Live Streaming software for funeral homes, has announced a new monthly newsletter.

“The Memo” is for funeral directors to stay updated on the latest tools, pro-tips, video tricks, and technology op-eds in the funeral profession. Subscribers will get exclusive access to early offers, discounts, and feature releases.

To subscribe to The Memo, click the button below.

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Grief Dog Listed as Mascot on Funeral Page—PETA and Labor Bureau Have Serious Questions

Sunset Meadows Funeral Home’s website proudly features Scout, a six-year-old golden doodle, as “Office Mascot, Emotional Support Specialist, and Director of Snuggles.” But what was intended as a heartwarming bio has raised eyebrows with two unexpected agencies: PETA and the U.S. Department of Labor.

“We just want to know—was this dog consulted before being given a job title?” said a PETA representative, noting that Scout’s profile photo features him in a necktie, which they’ve classified as a possible “canine dress code violation.”

The Labor Bureau, meanwhile, has launched a formal inquiry into potential unpaid labor. “If this animal is working full-time hours, appearing in marketing materials, and has a listed role in operations, we need to determine if he’s being compensated appropriately,” said investigator Mark Delaney. “Treats and head pats may not meet federal minimum wage standards.”

A deeper audit revealed Scout has appeared in 42 Instagram posts, 3 funeral livestreams, and a holiday card campaign without ever clocking in. One photo even shows him seated at the arrangement table with a pen in his mouth, which the Bureau is reviewing as “evidence of administrative duties.”

Funeral home staff maintain that Scout enjoys his role and is “free to leave at any time,” although insiders say he prefers to nap in the casket showroom and refuses to go outside during rain.

For now, Scout remains on the payroll—emotionally, if not legally. Labor officials say a decision is expected soon. PETA, in the meantime, is offering to rehome him to a “less emotionally taxing position in a candle shop.”

Trivia

Choose the correct answer and you’ll see a puppy. Get it wrong and you’ll see someone hurting themselves.

Which U.S. state had the lowest age-adjusted death rate per 100,000 people in 2023?

A. Hawaii
B. California
C. Utah

You Otter Be Proud

Here’s some good news going on in the profession.

1.  Unique Program Recycles Pacemakers Retrieved from the Deceased
2. People Magazine Covers Funeral Profession Story
3. Fifth-generation funeral director Jeff Monreal helps families grieve, celebrate loved ones

A British Columbia woman is suing a Port Coquitlam funeral home for failing to properly care for the body of her deceased 91-year-old father.

The plaintiff, Nooshin Mozafar, claims in her lawsuit filed in B.C. Supreme Court, that the wrong body was transferred to a mosque for cleaning and wrapping, according to Muslim rituals, in preparation for burial, according to a recent story in the Tri-City News.

Mozafar claims when she went to the mosque to view her father’s body, she was shocked to find the wrong person had been delivered.

“Upon unwrapping the body, it became abundantly clear to the Plaintiff that the body was not that of the deceased,” the lawsuit claims.

Despite her objections that it wasn’t her father, Mozafar claims in her lawsuit that she was “repeatedly told” that she was mistaken and it was her deceased father, who had died in Lions Gate Hospital on Nov. 4, 2021.

Mozafar was eventually allowed examine the body to show that it wasn’t her father “through identification of specific body parts,” which convinced the mosque that the wrong body had been delivered.

She is suing Vancouver Coastal Health, Heath Transfer Services Inc. and the family-owned Oliveira Funeral Home in Port Coquitlam for failing to properly care for the body of her deceased father.

Oliveira Funeral Home had contracted Heath Transfer to transport the body to the mosque, according to the legal action, and Vancouver Coastal Health was responsible for releasing the body to Heath Transfer to be transported to the mosque.

The lawsuit says Heath Transfer and Oliveira eventually “accepted” that there had been a mixup with the deceased’s body and “advised that they would search for it,” the lawsuit says.

The deceased was eventually located after an “exhaustive search” and was buried at Capilano View Cemetery on Nov. 10, 2021.

Mozafar says in her lawsuit that she had been very close to her father and had cared for him until he died in hospital.

No explanation was ever provided to her as to how the mistake was made, which caused her further emotional distress, she claims, adding she suffered nervous shock, post-traumatic stress disorder and other emotional injuries.

The lawsuit claims the defendants were negligent in failing to confirm the identity of the deceased and keep track of the body, and that the defendants were mistaken when they said Mozafar did not recognize her father after he had died.

The defendants “owed a duty of care to the plaintiff to exercise all reasonable care, skill, diligence and competence in the handling and transportation of the deceased,” the lawsuit claims.

The lawsuit seeks general damages for pain and suffering, loss of enjoyment of life, special damages, an award for future care expenses, costs and interest.

The claims in the lawsuit have not been proven in court. The defendants will file statements of defence to answer the claims of the legal action.