Final Expense Life Insurance V. Prepaying At Funeral Home

[NSRH]

It's not better or worse. It's the same thing.

As for embelzement, they did embelzle from the insurance company.

I don't know where you keep getting hung up on a trust.

Do you really not understand your competition?

I don't understand my competition?

Funny John.

It's not the same thing, at all. LOL

 

[Lawsonhj1]

"NPS promised customers across the country that money from prearranged funeral contracts would be held in trust. Claims were supposed to be funded by life insurance policies payable to the trust. But federal authorities found that company officers and others spent some of the money on lavish lifestyles instead."

I can't say for certain, but because of the quote above, I suspect some of the money that was embezzled didn't pass through the trust, so maybe some affected didn't have the protection. Who knows.

But back to my original question, is a preneed policy ever better than a SPWL or traditional FE?

A preneed policy done right will guarantee today's price for specific funeral goods and services as selected. You buy the funeral today for future use and you fund the funeral with a life policy assignable to funeral home by a separate Goods and Services Agreement with assignment of proceeds to funeral home upon performance of services as selected. Funeral home takes policy growth up to actual cost at time of death in exchange offers price guarantee as hedge on inflation. Most likely actual policy value at time of death will be less than current retail cost at funeral home which offsets it as discount and usually is still profitable. Also a preneed policy can be made irrevocable if needed for spend down purposes. Just in case the Funeral Director decides to close shop and clip coupons in the Bahamas the preneed policy will gladly be accepted by competing funeral home and although not contractually obligated to accept locked in price the insurance policy provides protection to consumer which is why most states require a preneed funeral to be funded by insurance or a bank trust agreement.