What Happens when a Customer Dies?

[Iwillpay]

Yes and yes.

Most charge between 3-4% fee. Usually the funeral home absorbs the fee.

Then they get paid back when the insurance company pays the claim.

If the FE insurance company will pay or pays claim in 24-48 hours is assignment still necessary?

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Lets say the family brings in a 10k policy for funeral that costs them 8k do they have any concerns handing policy over to funeral home?

I am guessing funeral home would just cut family a check for difference after getting paid by assignment company, is this how it works?

From what I understand the insurance company would pay $8K to the Funeral Home and the balance to the beneficiary directly. Not sure how true this is in practice. maybe someone with experience can post on this.

 

[Newby]

Lets say the family brings in a 10k policy for funeral that costs them 8k do they have any concerns handing policy over to funeral home? I am guessing funeral home would just cut family a check for difference after getting paid by assignment company, is this how it works?

Usually the funeral home just assigns the amount of the funeral since they are paying the fee. The insurance company pays the other part to the beneficiary when they pay the assignment company.

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If the FE insurance company will pay or pays claim in 24-48 hours is assignment still necessary? ---------- From what I understand the insurance company would pay $8K to the Funeral Home and the balance to the beneficiary directly. Not sure how true this is in practice. maybe someone with experience can post on this.

If the family has the cash in hand before the funeral there is nothing to assign. They just pay the funeral home cash. Or by personal check.