Insurance Agent Forum

[Russ]

I have a lady that has a life policy with me that tried to name the funeral home as her beneficiary. Has anyone heard that a person can't name the funeral home as the beneficiary in Florida? She had originally named her estate as the beneficiary and then about a year later decided to change it to the funeral home. The company wouldn't accept it for the reason I stated...in Florida it's not allowed.

That's a new one on me.

[SCLady]

What happens if they go out of business? How much is the policy for? Not more than the cost of the funeral, right? LOL

[Markingriffin]

I see nothing wrong with it. But Florida is a tough state.

Most of the time after a policy is in force you can change the beneficiary to just about anyone in most states. That is how the life settlements companies end up buying polices. I would think the funeral home would have an insurable interest also.

Something must have happend in FL for the Ins Dept to make this change. I would still call some other companies or even the ins dept to ask them if this is allowed or not.

I use to write some policies and make the church the beneficiary to the policy. On lower face amounts this was allowed.

[Russ]

Originally Posted by SCLady

What happens if they go out of business? How much is the policy for? Not more than the cost of the funeral, right? LOL

$1,500.

Good question you asked....I guess you would change it.

I asked her if she has a family member she could or would name...she said no. The way she acts I wouldn't claim her either. She bought a med-supp from me with Continental Life back in 2006 and to get extra commission, you had to write a life policy with it. She bought the least amount you could get. She has a lady friend(that also has insurance with me), she hangs out with a lot. I would have named her.
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Originally Posted by Markingriffin

I see nothing wrong with it. But Florida is a tough state.

Most of the time after a policy is in force you can change the beneficiary to just about anyone in most states. That is how the life settlements companies end up buying polices. I would think the funeral home would have an insurable interest also.

Something must have happend in FL for the Ins Dept to make this change. I would still call some other companies or even the ins dept to ask them if this is allowed or not.

I use to write some policies and make the church the beneficiary to the policy. On lower face amounts this was allowed.

Thanks....I'll find out Friday. I know I've done this for others in the past and it always worked.

[Newby]

Originally Posted by Russ

I have a lady that has a life policy with me that tried to name the funeral home as her beneficiary. Has anyone heard that a person can't name the funeral home as the beneficiary in Florida? She had originally named her estate as the beneficiary and then about a year later decided to change it to the funeral home. The company wouldn't accept it for the reason I stated...in Florida it's not allowed.

That's a new one on me.

There is no reason to name a funeral home as a beneficiary on a life policy. People who do that are usually confused. There always has to be a person in charge of the funeral arrangements when they die and that person would be better off to be the beneficiary.

Sometimes people think naming the funeral home as the benny will exempt the policy from Medicaid but that is wrong. The funeral home must be made the OWNER of the policy as well as irrevocable beneficiary to make it exempt from Medicaid.

They shouldn't have the estate named as beneficiary either. You always want a live person. If the estate is the benny it will be tied up in probate and would never be usable for the funeral unless the funeral home is willing to wait a LONG time for their money (most won't.)

Most funeral homes require payment BEFORE service these days. They will require the beneficiary to assign the policy to an advancing company that will pay the funeral home immeadietely and the advancing company will wait to collect their money from the insurance settlement (at about 30 to 60% apr)

[Russ]

Originally Posted by Newby

There is no reason to name a funeral home as a beneficiary on a life policy. People who do that are usually confused. There always has to be a person in charge of the funeral arrangements when they die and that person would be better off to be the beneficiary.

Sometimes people think naming the funeral home as the benny will exempt the policy from Medicaid but that is wrong. The funeral home must be made the OWNER of the policy as well as irrevocable beneficiary to make it exempt from Medicaid.

They shouldn't have the estate named as beneficiary either. You always want a live person. If the estate is the benny it will be tied up in probate and would never be usable for the funeral unless the funeral home is willing to wait a LONG time for their money (most won't.)

Most funeral homes require payment BEFORE service these days. They will require the beneficiary to assign the policy to an advancing company that will pay the funeral home immeadietely and the advancing company will wait to collect their money from the insurance settlement (at about 30 to 60% apr)

This lady is loose in the brain....yeah, I knew that about not naming the estate and agree with naming a person vs. a funeral home. She has a close friend that she hangs with a lot that she could name. She's just being an asshole about it. I'm gonna check with other companies tomorrow just to verify if that's the case(funeral home not allowed as beneficiary in Florida).

I hate losing business, but considering I make a whopping $1 a month in renewals on this 3 year-old policy, good riddance to her. She still has her med-supp with me and Continental Life has paid a great deal in claims on her.

She was also telling me yesterday that she has dropped/switched her PDP plan from what she had with me(AdvantraRX), to Wellcare. She was mailing in a coupon each month, but told me she couldn't because she was in the hospital for awhile. She's feeding me a line of BS...Coventry will keep a policy active up to 90 days from a premium due date.

[tryan326]

I wouldn't recommend them put the funeral home as the ben. Why not just keep it part of her living trust or list a trustworthy family member?

[Ray Ray]

I know Funeral Homes must follow legislation that is unique. Can the Funeral Home create a debt owned to them by the Policyholder and establish an insurable interest in that way? Otherwise a trust directing the life insurance benefit be used to pay final expenses is the best way to set it up.