Can't Name Funeral Home Beneficiary on Life Policy?

[yellowbirdnj]

James you must be new. 1. after you've been in the business for a while you will discover there are people you wish you had never written no matter how badly you may have needed a sale that week. 2. You never want a funeral home as beneficiary. They will use up the entire amount no matter what the face amount is. You want the ben. to be someone trusted who will respect the money.

Sometimes those crazy clients are the ones with no friends or family due to their craziness. If its a low face, like final expense, then there is no harm in naming a funeral home or church, if allowed.

 

[TexasAgent]

FYI - A funeral home is not allowed to be named as beneficiary in the following states: FL, MD, MI, MT, NJ, OK, SC, SD, TN, TX, UT, WV...and possibly PA and MO.

 

[Jerard]

FYI - A funeral home is not allowed to be named as beneficiary in the following states: FL, MD, MI, MT, NJ, OK, SC, SD, TN, TX, UT, WV...and possibly PA and MO.

I'm in Florida and I just delivered a policy that a funeral home was primary with no second. It was with Monu.

 

[tins]

I'm in Florida and I just delivered a policy that a funeral home was primary with no second. It was with Monu.

I have done the same thing with multiple companies, in Missouri.

 

[WinoBlues]

That may be a fraternal thing. Had that problem with my last Foresters certificate I wrote. Years ago. Just another reason to not write them.

 

[jdeasy]

That may be a fraternal thing. Had that problem with my last Foresters certificate I wrote. Years ago. Just another reason to not write them.

I've had that problem with fraternals and with insurance companies. Some companies just like to have business prevention rules in place. That goes for fraternals and the rest.

One of the biggest problems I had over that was with AmAm. They are not fraternal. Maybe they aspire to be?

 

[xrac]

FYI - A funeral home is not allowed to be named as beneficiary in the following states: FL, MD, MI, MT, NJ, OK, SC, SD, TN, TX, UT, WV...and possibly PA and MO.

Are those state insurance department rules or mortuary rules? How can the state tell the owner what he can do with his property? What happens if it happens and no one picks up on the fact that it is a funeral home?

 

[FEproducerKen]

Many times the agent guides will list the states they say have laws preventing a FH from being the beneficiary. I have never seen TN on one of those lists. but I have seen individual insurance companies who do not allow it in any state. One is standard life and Accident, I have one more but I can't remember which one. I usually call underwriting with UW with any company I get appointed with to be sure. I have more than most that want the FH to be beneficiary because I work in a Funeral Home and have more requests for it. I do know that RNA Americo and GPM will. GPM and Americo wants the wording to be "XXX Funeral Home as It's Interest May Appear" and they all want a contingent beneficairy, even if it is the state, when this is used.

All companies are more lenient with it once the policy has been issued and the insured or owner changes the ben. over to a Funeral Home.