I think that there still is a discussion about “Guaranteed” vs. “Non-Guaranteed” preneed funeral contracts.  Although, I would argue that for the past decade or so the vast majority of preneed accounts sold by funeral homes are “Guaranteed”.  By that I mean that the services and merchandise is picked out at pre-arrangement time and fully funded by a life policy of that face value. As time passes and the account holder dies the funeral provider, who also did the pre-arrangement, provides those services for the value of the death benefit at the time of death with no additional charges to the consumer/preneed client.

That has seemed to work very well, and depending on the state laws where written a funeral director may get more or less than his current charges for the services.  In some states he may not be able to keep any overage and any value of the policy above his funeral statement for services rendered must be sent to the named Seconday Beneficiary.

So, at least in those states, a funeral provider may have to guarantee goods and services that could have a higher value at death than the proceeds of the policy.  That works out as a “discount” by the funeral provider.  On the other hand, the funeral home can never take an overage so over a number of contracts he probably has discounts because of under-inflationary growth that are never offset by gains on the other side.

For most funeral homes that method works just fine and the idea of having a preneed account on the books and the commission it generated when put in place may make up for the number of discount funerals that happen.

In Minnesota where I worked the law required that the beneficiary of a preneed policy be “Any funeral home as their interest may appear” which meant we could only be paid, as primary beneficiary, the amount of our statement.  In essence, we never received an overage but if the preneed policy was “guaranteed” we could be underpaid.

It also allowed the consumer/preneed client a “Bag of Money” that was not tied to a certain funeral home.  That was a handy sales tool when dealing with seniors who may be thinking about moving to a southern state or, as they got older, to the community of their children.  It allowed them a “Bag of Money” in their pre-arrangement account that was “portable”.

Tom Anderson
Funeral Director Daily

Again, as to “Guaranteed preneeds” they generally work very well and are probably not a financial issue unless, like recently, you have a very high inflation rate for a period of time and a fixed low-interest rate growth preneed product.  And, some costs you just cannot control — such as utilities, property taxes, the cost of steel or lumber in casket manufacturing, the cost of concrete in vault manufacturing.  In essence, you can try to control costs. . . .but not all are controllable by you.

So, what does that mean on “Guaranteed” funeral pre-arrangements?  For our assumptions let’s just say a preneed client has a work-up of exactly $9,000 for the services he/she wants to pre-arrange.  Furthermore, we will say for a one-time premium of that amount that the insurer adds $1,000 of face value to that policy.  So, the policy starts at $10,000 of face value and has an annual 2.5% growth rate on the $10,000 face value (which came with a $9,000 single premium).

That policy, in ten years will have an appreciated face value of $12,800.

If you run the inflationary numbers on the $9,000 of merchandise and services (and profit) for the same ten years.  If your inflationary costs went up:

• 3% annually — you would have a cost of service of $12,095
• 4% annually — you would have a cost of service of $13,222
• 5% annually — you would have a cost of service of $14,660

And, at death you provide the services that cost you, including profit, that much and receive the $12,800 in full payment from the policy.

As you can see from our small illustration on one potential account, the average annual inflationary costs probably have to get above 4% to create a loss of margin large enough to worry about.  In our example that 4% is about 1.5% higher than the insurance company is crediting the policy.

Our example does show the importance of receiving some “insurable additional value” to the policy in order to make this work stress-free.  For instance our example case adds $1000 of face value to the $9,000 single premium.  Without that “Bonus” the face value — compounding at 2.5% annually for ten years — would only be worth about $11,520.  The lack of the additional “Bonus insurance”, many times called a “Bump” in the Death Care world, would increase the odds of a deficit between the funeral home’s actual costs and the insurance benefit provided.

By the way, as you can find with this inflation calculator here, in this time of “higher than average” inflation, a purchase of $100 in 2020 would cost $124 in 2025 — which is an annual average inflation of 4.49%.

Do “Guaranteed” funeral preneed accounts work in high inflationary times?  That is truly a question that has to be answered by each Death Care provider owner.  Again, one has to weigh the benefits of securing a future death call with the potential for getting a lower than inflationary return on the sale cost.  And, each individual owner will have their own anxiety levels on the level of discounted funerals they execute.

There is no “right or wrong” decision on operating your preneed department with “Guaranteed” or “Non-Guaranteed” policies.  However, making sure that you know the math and the ramifications of that math is essential in providing the best possible scenario for your funeral home.

More news from the world of Death Care:

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

In today’s world, making end-of-life decisions can be a daunting task, especially when faced with numerous choices and limited information. This is where the advantage of working with a reliable provider for Rochester, NY cremation services
comes into play. A trustworthy cremation service not only simplifies the process but also offers peace of mind during such a sensitive time.

Personalized and Compassionate Service

One of the primary benefits of choosing a reputable cremation provider
lies in the level of personalized and compassionate service they offer. Unlike larger, corporate-run entities, a specialized cremation service takes the time to understand each family’s unique needs and wishes. By engaging closely with families, they can offer tailored solutions that honor the memory of the departed while respecting the family’s decisions and preferences.

Reliable cremation providers employ experienced and empathetic staff trained to offer support through every step of the process. With their expertise, they can guide families through the necessary paperwork, legal requirements, and cremation options without feeling rushed or overwhelmed. This personalized approach fosters trust and ensures that the entire process is managed with dignity and respect.

Transparent and Fair Pricing

Another significant advantage is the transparency in pricing. Families can expect clear and upfront costs without hidden fees when dealing with a trustworthy cremation provider. This transparency helps families make informed decisions that align with their financial situation. Given the rising costs associated with end-of-life services, clearly understanding the expenses involved is crucial.

Reliable cremation
providers offer fair pricing structures and flexible payment options, making quality services accessible to a broader range of families. Their business model often avoids prepayment requirements and provides flexible financing options, ensuring the cost does not become an additional burden during an already challenging time.

Focus on Simple and Dignified Processes

The cremation industry has evolved, with many families opting for more straightforward and dignified end-of-life arrangements. A dependable cremation service provider focuses on creating a stress-free, easy-to-understand process that aligns with the modern trend of minimalistic and meaningful funerals. By dedicating their services to cremation rather than traditional burials, these providers ensure that each step—from the initial contact to the final ceremony—is straightforward and handled with the utmost care.

Families often appreciate the flexibility that comes with choosing a reliable cremation provider. Whether opting for direct cremation or a memorial service, they can rest assured that the service will be conducted professionally and with respect for their loved one’s wishes. Additionally, reputable providers often engage in continued education and stay updated with industry trends, offering state-of-the-art services that blend seamlessly with traditional values.

Customer Support and Community Engagement

Beyond the immediate service, reliable cremation providers are deeply embedded in their communities. They often engage in various community activities, whether it’s volunteer work, sponsorships, or partnerships with local organizations. This community involvement enhances their reputation and demonstrates their commitment to serving beyond just business needs.

Furthermore, they provide ongoing support to families after the cremation process. This can be through grief counseling, memorial events, or simply being available to answer any questions. Such dedication helps families navigate their loss and fosters a lasting relationship built on trust and reliability.

Conclusion

In conclusion, partnering with a reliable Rochester, NY cremation service provider
provides numerous benefits, from personalized care and transparent pricing to a focus on dignity and community support. At Rochester Cremation, we strive to offer these advantages and more, ensuring each family receives the compassionate and professional service they deserve. For those seeking more information on our services, we encourage you to contact us and discover how we can help during your time of need while providing peace of mind and outstanding service.

In today’s world, making end-of-life decisions can be a daunting task, especially when faced with numerous choices and limited information. This is where the advantage of working with a reliable provider for Rochester, NY cremation services comes into play. A trustworthy cremation service not only simplifies the process but also offers peace of mind during such a sensitive time.

Personalized and Compassionate Service

One of the primary benefits of choosing a reputable cremation provider lies in the level of personalized and compassionate service they offer. Unlike larger, corporate-run entities, a specialized cremation service takes the time to understand each family’s unique needs and wishes. By engaging closely with families, they can offer tailored solutions that honor the memory of the departed while respecting the family’s decisions and preferences.

Reliable cremation providers employ experienced and empathetic staff trained to offer support through every step of the process. With their expertise, they can guide families through the necessary paperwork, legal requirements, and cremation options without feeling rushed or overwhelmed. This personalized approach fosters trust and ensures that the entire process is managed with dignity and respect.

Transparent and Fair Pricing

Another significant advantage is the transparency in pricing. Families can expect clear and upfront costs without hidden fees when dealing with a trustworthy cremation provider. This transparency helps families make informed decisions that align with their financial situation. Given the rising costs associated with end-of-life services, clearly understanding the expenses involved is crucial.

Reliable cremation providers offer fair pricing structures and flexible payment options, making quality services accessible to a broader range of families. Their business model often avoids prepayment requirements and provides flexible financing options, ensuring the cost does not become an additional burden during an already challenging time.

Focus on Simple and Dignified Processes

The cremation industry has evolved, with many families opting for more straightforward and dignified end-of-life arrangements. A dependable cremation service provider focuses on creating a stress-free, easy-to-understand process that aligns with the modern trend of minimalistic and meaningful funerals. By dedicating their services to cremation rather than traditional burials, these providers ensure that each step—from the initial contact to the final ceremony—is straightforward and handled with the utmost care.

Families often appreciate the flexibility that comes with choosing a reliable cremation provider. Whether opting for direct cremation or a memorial service, they can rest assured that the service will be conducted professionally and with respect for their loved one’s wishes. Additionally, reputable providers often engage in continued education and stay updated with industry trends, offering state-of-the-art services that blend seamlessly with traditional values.

Customer Support and Community Engagement

Beyond the immediate service, reliable cremation providers are deeply embedded in their communities. They often engage in various community activities, whether it’s volunteer work, sponsorships, or partnerships with local organizations. This community involvement enhances their reputation and demonstrates their commitment to serving beyond just business needs.

Furthermore, they provide ongoing support to families after the cremation process. This can be through grief counseling, memorial events, or simply being available to answer any questions. Such dedication helps families navigate their loss and fosters a lasting relationship built on trust and reliability.

Conclusion

In conclusion, partnering with a reliable Rochester, NY cremation service provider provides numerous benefits, from personalized care and transparent pricing to a focus on dignity and community support. At Rochester Cremation, we strive to offer these advantages and more, ensuring each family receives the compassionate and professional service they deserve. For those seeking more information on our services, we encourage you to contact us and discover how we can help during your time of need while providing peace of mind and outstanding service.

Nothing speaks wisdom like hard earned lessons learned.

And these 4 funeral professionals have some wisdom to share on one of the biggest topics right now… creating an unforgettable family (or customer) experience.

Why waste any time?

Let’s dive straight into the lessons from some of our favorite funeral professionals out there:

Lesson #1: Ask lots of questions to understand your families’ needs… then listen deeply to the answers

You might think that client families don’t want to talk much because of their grief and sadness. You might think they’re not interested in what you have to offer and just want to get the service over with. You might feel shy around asking deep questions that go beyond the normal “customer service” experience. 

And if you feel this sort of way about any of the above situations, we completely understand why. The way business has worked for so long has been direct, sales focused and customer centric. 

However now, sales IS service. Customers ARE friends and family. Deep questions ARE great customer service. It’s time to transcend the confines of the old client family journey, and treat every family like they are friends.

One business that is a great example of this is Eterneva. They begin every journey with their customers asking tons of questions about their loved one. And they stay up to date with them through every step of the journey.

Co-Founder of Eterneva, Adelle Archer, explained her process with us:

“When someone calls us, we don’t talk about diamonds. We just sit them down and ask them to tell us about their loved one. What made them special? You wouldn’t decide to make a diamond for just anyone.”

Now, Eterneva is a huge success in the funeral profession and their secret sauce is certainly this level of care and communication. Take this example below, where you see the closeness and frequency of communication they maintain with their client families, including them in every step of the service.

Lesson #2: Never assume a direct cremation family doesn’t want to create a meaningful experience

Industry expert Walker Posey, Posey Funeral Directors, believes that direct cremation is a result of lack of proper education on their options (among other reasons that he explains here). 

His biggest piece of wisdom that hit us hard is this:

“Today, many funeral directors simply don’t have the courage or skill to stop being an order taker and become the true advisor that client families actually expect to deal with. When a family comes in and sits down across from an order taker, they have no choice but to accept the inadequate options that are presented. The idea of associating cremation with limited or no service is very under-serving to the families who call on us and this habit must be stopped.”

Read More: Walker Posey Shares The REAL Reason Families Choose Direct Cremation

Lesson #3: Have affordable, easy personalization options available for families 

Now that we understand a direct cremation family isn’t necessarily what we think it is, let’s talk about offerings. What kind of options can you provide families with who choose direct cremation?

According to funeral director Joe Pray of Pray Funeral Home, props are a great start:

“We recommend investing in minimal props and elements that could work for most creative personalized services you plan. In many cases, the family will gladly pay the cost of the creative things that you suggest for the service. In some cases, the cost may be paid by the funeral home. Many props you develop for a creative service can be re-used for other services. The benefit will be well worth the expense in the eyes of the family and their guests.”

Pray Funeral Home is known in their community for holding extraordinary services with high levels of personalization and tons of meaning for families. This level of service translates into plenty of opportunities for growth, especially when it comes to their client families’ raving reviews. So next time you feel deflated by a direct cremation family, grab your props and educate families on their options!

Read More: 6 Service-Oriented Alternatives To Direct Cremation

Pray Funeral Home offered client families a chance to play “one last pool game” in honor of their loved one.

Lesson #4: Cooperate with local businesses rather than compete with them

It might seem counterintuitive to collaborate with businesses that do similar things as you. But think about it from the client families’ perspective. What would provide them the utmost care and support? A continuum of support from their community that is woven with care, or many separate services they have to seek out on their own to find support? We think the latter sounds much more difficult!

Take it from Felicity Warner,  the founder of Soul Midwives and the Soul Midwives School, who loved collaborating with funeral homes:

“Increasingly, we are working with funeral directors. One of the reasons is that people are very keen to see a line of continuous care for their loved ones… right through to the funeral and beyond.

Recently I worked with a family who were very keen to keep their father at home for three days, allowing him to “rest” with the family around him. The funeral director was fantastic; we worked with him very closely. He helped in every way that he could, popping in and keeping a very close eye and suggesting exactly the right moment for the body to be removed and with great delicacy and tenderness.”

Read More: We Interviewed a Soul Midwife to Discuss the Mind, Body & Soul Journey of Death

Put it all together, and what do you get?

There seems to be a common denominator between all of these funeral pros. Can you sense it? What is it that creates a successful client family journey? We’d love to hear the nuggets you pulled from this, and the lessons you learned! 

Share them with us in the comments below 🙂

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