New Bill Aims to Protect Pre-Paid Funeral Funds

August 27, 2009
Advertisement

image A bill making it’s way through the General Assembly aims to protect families who’ve recently lost a loved one. It’s in response to problems with a pre-paid funeral fund. In the past several years– the Illinois Funeral Directors Association has lost millions of dollars set aside for people’s final arrangements. Funeral preparations are the third-largest expenditure for older consumers. Ranking behind the purchase of a home or a car.

“Most people are older, their kids are gone, they don’t want to burden their family,” explained funeral director Monte Blue.

He’s run Blue Funeral Homes in Marion and Goreville for decades. Lately, he says he’s seeing more and more people pre-pay to make sure that the costs of arrangements, including caskets and burials are taken care of.

Advertisement

In most cases, Blue says, those investments are safe. Even if money was invested with the Illinois Funeral Director’s Association trust fund. “The funeral director is basically the one that is at risk right now.”

But according to AARP Illinois spokesman David Irwin, if a funeral director goes bankrupt or out of business, a family could be in a financial pinch just as they’re dealing with the loss of a loved one.

Senate Bill 1682 aims to shield consumers in-part by creating a protection fund in case funeral homes don’t fulfill their end of the deal.

The new legislation imposes higher investment standards and strengthens auditing requirements, among other things. It would also require more communication with prepaid funeral customers, like monthly statements.

Blue has tips for protecting yourself.

First, make sure your pre-paid fund is transferable, “In case you move to Florida or that director goes out of business.”

And be sure to choose a guaranteed plan. That way–even if the funeral director’s fund loses money–you’re protected.

“If you guarantee and pay for this funeral, no matter what is in the account, that money, you’ve got to take care of that family,” Blue said.

By Dana Jay, WSIL Southern Illinios News Channel,

CDFuneralNews

CDFuneralNews

ConnectingDirectors.com is the leading online daily publication for funeral professionals with a reader base of over 45,000 of the most elite and forward-thinking professionals in the profession. With ConnectingDirectors.com we have created a global community through an online platform allowing funeral professionals to Stay Current. Stay Informed and Stay Elite.
CDFuneralNews
Advertisement

You may be interested

Take That Step | FUNERAL hustle 013
FUNERAL Hustle
156 views
FUNERAL Hustle
156 views

Take That Step | FUNERAL hustle 013

DISRUPT Media - October 5, 2017

We hit Atlantic City for the 2017 New Jersey State Funeral Directors Association Annual Convention. We unveiled a brand new…

Transgender Woman Sues Metro Detroit Funeral Homes After Losing Her Job
News
181 views
News
181 views

Transgender Woman Sues Metro Detroit Funeral Homes After Losing Her Job

CDFuneralNews - October 5, 2017

Originally Published on WXYZ Detroit Should someone be fired because they are transgender? A transgender woman has sued the owner of…

How to Leverage the One Statistic Everyone is Ignoring and It’s a Game Changer
Death Discussions
374 views
Death Discussions
374 views

How to Leverage the One Statistic Everyone is Ignoring and It’s a Game Changer

Ryan Thogmartin - October 4, 2017

As a profession, we are completely undervaluing the need to get attention and immediately provide value back to that consumer. It…

Comments