When Preneeds Were Good

          My first introduction to the preneed funeral concept came about while working as a student intern at a funeral home. By the time I had joined that particular funeral home, one of more than five with a few cemeteries, it had been bought by a corporation. In the large file cabinets, there were drawers filled with folders. The first few that caught my attention were the older preneed contracts.

          The original family had been the first to offer preneed funerals in the area. The firm, dating back to the late 1800's, was also home to the first licensed female funeral director as well. In the beginning, the family established a burial insurance policy for $500. That was a lot of money in those days. However, the insurance policy included a complete traditional funeral, including basic services of the funeral director and staff, removal from the place of death to the funeral home, embalming, dressing, casketing, cosmetology, casket, spray of flowers for the casket, memorial folders, newspaper notice, clergy stipend, stipends for an organist and vocalist, limousine for the family and flowers for the pall bearers. Also, because the family owned the cemeteries, opening and closing of the grave was included. The only additional cost was the grave space, which I learned most folks had already purchased.

          One of the most interesting features was the choices. When a family purchased the policy, they were guaranteed the opportunity to use any of the family funeral homes or cemeteries. Unlike today, the prices were the same in each neighborhood. These days, in that particular city, the corporations use the neighborhood to dictates the prices. Also, they tend to frown on allowing a family to choose which funeral home they wish to use.

Preneed Funerals : Scandals and Fraud

       
          With the National Prearranged Services (NPS) scandal making headlines over the past few days, I thought it would be an appropriate time to cover. The latest scandal involves a 50-count indictment handed down for several of NPS's top brass. They are accused of embezzlement to the tune of $600 million from the funds paid to them by consumers for preplanned funerals. This is not the first scandal of its kind and I feel safe in assuming it will not be the last. While NPS is located in Missouri, similar scandals have taken place in Illinois, California, Louisiana and other states. It has not only been the preneed companies charged, but funeral homes and funeral directors as well. Unfortunately, preneed companies like NPS not only affect consumers in Missouri, but in the many other states and funeral homes that offer their contracts to consumers.

          My first introduction to NPS came about in my first job as a funeral director. It was a small town, independent funeral home in Texas. A new regional sales manager with NPS stopped by and, along with the funeral home owner, announced that I would be getting my license to sell preneed policies to families. To become licensed, there is a test involved. However, the sales manager and the owner advised me of "the best part." The sales manager handed me a copy of the answer key and the test.

          I took the test and answer key, advising them that I would work on it later, as I had a couple of families to follow-up with. Fortunately, the owner forgot about it and I became more interested in selling cemetery monuments. I left the preneed funeral sales to one of the other employees. Here's the irony. After the NPS  manager stopped by, another funeral director said, "That guy looks familiar, but he is from out-of-town and I just can't place it. Where could I have seen him?" Another funeral director, a female, replied, " Maybe in a mugshot somewhere."