The Truth about the Funeral Director Profession
A funeral director, formerly known as a mortician, is the individual who is responsible for all aspects of the funeral, from preparing the deceased for the viewing and burial to overseeing the funeral service. This includes making the choice to offer funeral finance options for their clients. However, this profession is often one that is misunderstood.
Why Become a Funeral Director?
This is one of the most common questions individuals ask. The answers are often complex and vary drastically depending on whom you are asking. Some are attracted to the job because of inspiration they received from a funeral director who handled the funeral of a loved one. Others previously worked a part-time job in a funeral home. Still others are simply fascinated by death. Regardless of the reason, those who typically enter this field are dedicated to honoring the deceased and helping families cope with their loss.
Becoming a Funeral Director
Funeral director as a career choice has become quite competitive, making it difficult for many individuals to find a job after completing the appropriate training. An apprenticeship is required to obtain a license, and many offer to work for free to complete this step of the process. Even though these jobs offer low pay, it is still an attractive career for those who want to give back through their profession. Once individuals get a job as a funeral director, they can expect to dress with no revealing clothing, wild hair colors or unusual body piercings. Because funeral directors often work with elderly individuals and clergy members, a conservative appearance is an important aspect of the job.
Not Always a Morbid Career
Death is often an event shrouded in sadness. As serious as the situation may be, there are still lighthearted moments in this field. In fact, it is often helpful for funeral directors to have a sense of humor to override the morbidity of their careers. Joking among co-workers and even a well-placed bit of humor with a family can go a long way toward helping individuals see things in a different frame of mind. It is important to gauge the mood of the family to avoid offending anyone.
A career as a funeral director certainly isn’t the right choice for everyone. It can be a stressful job that doesn’t have a high monetary compensation. The true reward in this type of career is the satisfaction of helping families say goodbye to loved ones and memorializing them in the minds of those who were close.
If you are a funeral home director interested in funeral finance for your funeral home,contact us. We can help you improve your cash flow and allow you to more effectively help families move forward with their loved ones’ funerals.
How to Explain Funeral Funding to Your Clients
When a loved one passes away, it can be difficult to think about much else, including how to pay for the funeral expenses. Life insurance is designed to alleviate the financial burden on families, but it takes time to file a claim and receive the money. Funeral financing is an excellent alternative to help families plan a funeral when they are ready, instead of waiting for the funds from the life insurance company. Explaining how funeral funding works can help alleviate stress and provide families with the tools they need to move forward with funeral plans.
Use the Funds Right Away
Some families suffering from shock and grief haven’t considered how they will pay for a loved one’s funeral. Others assume their life insurance policy will take care of everything. Few realize that a claim with their insurance company must be processed and paid before they will receive funds for the funeral. This could mean either putting the funeral on hold or using high-interest credit cards or personal loans for payment. Fortunately, funeral financing provides an alternative that allows these families to move forward with the funeral right away. The funding company verifies the insurance policy and provides families with quick access to those funds. Funeral funding can reduce the financial stress and give families the opportunity for closure on their own time table.
Reduce Paperwork
Filing a life insurance claim often requires extensive paperwork. During an already stressful time, filling out these documents properly can be difficult. Funeral funding companies provide assistance to these families, often completing much of the claims for them. In addition to completing these important documents for the family, they also handle collecting the money from the insurance company. Families don’t have to be concerned about making phone calls or dealing with insurance companies when they are already feeling overwhelmed.
A Low-Cost Alternative
Credit cards and personal loans often include high interest rates that will quickly add to the total cost of the funeral. Even if you receive the insurance money within a month, you may still be charged high amounts of interest. Working with a funeral funding company can drastically reduce these costs. In addition to reducing the cost of interest on a loan or credit card payment, these families won’t need to worry about making a payment plan. They simply make their funeral arrangements and allow the funeral financing company to handle the rest.
Paying for a funeral is often the last thing individuals think about when they have lost a loved one. Instead of taking out a loan or adding the funeral costs to a high-interest credit card, families can get relief with funeral funding. As a funeral director, it often becomes important to explain how the process works and why it is best for their clients. Besides saving money, using a funeral financing company can reduce the stress families often feel in these situations.
If you are interested in funeral funding for your clients, contact us. We work with funeral homes to allow grieving families to plan funerals in a timely manner.
Elements of a Successful Funeral Funding Company
Funeral funding can be a great option that allows funeral homes to better serve their clients. Funeral financing companies can also help families who are looking for a way to afford their loved one’s funeral expenses instead of waiting to hold the funeral. Regardless of whether you represent a funeral home or you are a family looking for assistance, there are certain elements you must look for to help you find the right funeral finance company.
A Long History
Many funeral funding companies only last a short time in the business due to the lack of adequate procedures. Without the right experience, it can be difficult for these companies to manage their finances and provide the best services for their clients. After just a few years, these funeral finance companies often go out of business and leave funeral homes liable for unpaid insurance assignments. If you can find a company that has been in business for many years, you can count on their reliability and experience to provide you with the funding you need to move forward with funeral plans.
An Insurance Assignment Guarantee
Life insurance companies often take more time than most funeral homes want to wait to be paid for the funeral. In these situations, funeral funding can give you an insurance assignment guarantee or nonrecourse funding. This paid guarantee offers protection against unpaid funerals. If you choose the right funeral funding company, a team of CPAs and attorneys will complete all the funding, tracking and enforcement that is necessary to generate payments and keep the funeral home’s cash flow moving. This is an extremely important element when you want to use a funeral finance program.
Check the Fees
While a funeral funding company will charge for their services, these fees are often much lower than hiring someone to do the work for you. However, not all funeral finance companies charge the same amount. Before you commit yourself to the first company you find, compare the rates of various companies so you can pinpoint the one with the best rates. Watch out for the companies who advertise the lowest rates. This is a sure sign that they do not use a team of CPAs and attorneys. These companies are usually new to the business and the funeral home usually ends up being liable for claims, due to their inadequate procedures. Some companies offer one low rate for all types of claims they process, rather than offering tiered rates, which is often easier for funeral homes and families to understand.
Excellent Customer Service
If you will be working with a funeral finance company, you need to be sure they are easy to work with. Without the highest level of customer service, you could face difficulty in navigating the funeral funding process. For instance, if you are left wondering whether the verification process is under way, it will lead to more stress than working with a company that communicates with you every step along the way.
Funeral funding is a critical element for funeral homes that want to improve their cash flow, avoid unpaid funerals and make the process easier for their clients. It is also easier for families who would otherwise be left to wait for their insurance payments. If you need assistance covering funeral costs, be sure to find the right funeral financing company to fulfill your needs.
Mortuary Financial Services encompasses all of the elements of a successful funeral funding company. For more information about why you should choose us for your funeral financing, contact us to speak with a representative.
Insurance Assignments: Like a Check Protection System for Funeral Homes
In the retail industry, companies take precautions to protect themselves from their customers’ inability to pay for the products or services they buy. Many of these companies rely on a check protection company to verify financial information when their customers request to use that form of payment. In the same way, funeral homes can use insurance assignment to provide payment assurance to the funeral funding company.
The Verification Process
The first step in the funeral finance process is to verify the insurance claim with the insurance company. This insurance assignment will check into the validity of the insurance policy and whether it will pay out in the given circumstances. Some of the factors the verification process will check for include:
Whether the policy is up-to-date.
How much the policy will cover.
If the insurance company requires a completed form.
Matching the deceased records to the insurance information.
Once the funeral home completes a request for funding with the funeral funding company, it will initiate the verification process to pay out the funds to the funeral home as quickly as possible. This way the family can move forward with funeral arrangements.
Funding
After the verification aspect of insurance assignment, the funeral funding company will receive a Notification of Intent from the insurance company. This gives the company the information they need to process the payment for the funeral home. In many cases, funeral homes receive the money in as little as 24 to 48 hours.
Processing
At this point, funeral homes are assured payment and do not have to worry about being paid. . However, the funeral funding company will continue to process the claim with the insurance company. While the funeral home must submit documentation to the funeral finance company, the funding company will submit that documentation to the insurance company and collect any money due once the claim is fully processed.
Follow Up
Throughout the process, the funeral funding company will follow up with the insurance company to ensure the process goes as smoothly as possible. In many cases, the funeral finance company will alert the insurance company when documentation is on the way so they can begin processing once they receive it. This company will also be responsible for keeping the funeral home informed of their claim status until they receive payment. This may include asking for additional documentation. Finally, the funding company will send the funeral home an invoice for their records once the process is completed.
Insurance assignment is an ideal way for funeral homes, as well as the grieving families, to get the money and protection they need to allow loved ones to provide a funeral without any delays. Without the help of a funeral funding company, many families would have to wait until they received the insurance payment before they could make any arrangements. Most families don’t want to wait that long. Funeral finance companies can provide funeral homes with the capital they need to offer their services to all families more quickly.
If you are interested in using insurance assignment and funeral funding to protect your cash flow, contact us. We can help you get the funding you need so families can plan funerals in a timely manner.
Tips for Choosing the Right Funeral Funding Company
If you simply search for funeral funding companies, you may become overwhelmed with the number of choices. While many of the funeral finance companies claim to give you the same benefits as the others, not all of them follow through with their promises. This leaves you wondering which company you should choose to fulfill your financing needs.
Do They Require a Contract?
Some funeral funding companies may require a contract, holding you to their services for a specified period of time. This is not the standard within the industry. Instead, most funeral finance companies want to give you assistance to keep your cash flowing and allow you to help grieving families create a fitting tribute to their loved ones on an as-needed basis.
Do They Promise Non-Recourse Funding at a Cut Rate?
It can be a risky business to accept money from a company with the understanding that they will be the ones to collect the funds from the insurance company. Non-recourse funding can eliminate this problem. While many funeral funding companies offer non-recourse funding, few are able to follow through. Therefore, you should look for a funeral finance company that features an on-staff attorney and CPAs to ensure they can track payments and collect from the insurance company if needed. Any company you choose should have a strong history in the business. Don’t take their promises at face value; get proof.
Do Fees Fluctuate?
It is normal for a funeral finance company to charge fees for their services. However, it is not typical for these companies to fluctuate their rates depending on various factors. As you search for the right funeral funding company for your financial needs, ask about their fees. Avoid working with a company with fees that are evasive and difficult to understand.
Is There a Quota?
Some funding companies require you to use their services equal to a specific amount of money each month. Sometimes this quota can be difficult to meet. Because your workload can fluctuate, it is important to choose a company that has no monthly requirements on the amounts they provide.
Do They Have a Time Limit?
Another common trick unreliable funeral funding companies use is setting a time limit on documentation. However, in many cases, the timetable on documentation you receive is beyond your control. This could put you at risk if the insurance company, county, or other entity fails to submit documents on time. A good funeral finance company understands the process.
How Do They Handle Payments?
You need a steady flow of money on a daily basis. Therefore, you need to choose a funeral finance company that offers funding options on all business days. It is also important to consider how they forward the money to you. Some companies offer ACH, wire transfer, and check options. Ask about turnaround time. A quality company shouldn’t make you wait more than 48 hours, just long enough for verification.
Funeral funding is the ideal option for funeral homes to ensure their customers can create the memorial they want for their loved ones. It eases the added pressure of your clients worry about coming up with the money for funeral expenses ahead of time. Because of the nature of funeral finance, it is critical to find the right company with which to work. Asking these questions can put you on the right track to finding the right company.
If you are looking for a quality funeral funding company, contact us. We offer all the dependable funeral finance services you need to keep a steady flow of cash for your business.
What’s in the Forecast for Funeral Funding? – Part 2
In our last blog post, we discussed how funeral funding can help with accounts receivable issues, including costly mistakes and the benefits of faster funding. This industry offers funeral homes other benefits as well. The use of funeral finance for business will increase in the future due to a variety of factors, indicating a cost effective future for the industry.
Baby Boomer Decline
The number of baby boomers is beginning to decline as years go by. These individuals are aging, and in time, their families will need to pay for their funerals. This will lead to a drastic increase in the number of funerals, as well as the amount of money funeral homes will need to maintain cash flow and provide families with end of life arrangements. Funeral funding can help a funeral home generate the flow of cash they need to pay their vendors, allowing a family to plan for their loved one before the insurance company pays out the policy.
Expanding Funeral Homes
In the past, many funeral homes were small, family-owned businesses that served a specific local community. Today, funeral homes are often larger businesses. Some homes serve multiple states. This leads to a greater need for available funds. Funeral finance companies can provide a steady flow of cash, instead of requiring funeral homes to wait for insurance companies to complete any paperwork and appropriate funds.
Financial Protection
When funeral homes handle insurance assignments in house, they put the company at a financial risk. If the funeral home allows families to plan and hold funerals before payment is received, there is a liability that their costs will not be reimbursed. However, when these funeral homes work with a funeral finance company, they can eliminate the risk and transfer much of the responsibility to the funeral funding company. Choosing a non-recourse funding company will ensure the funeral home is not responsible if the insurance company does not pay.
Funeral funding was not always a popular option. Many funeral homes felt these services were only necessary for those that were struggling. However, the use of a funeral financing company can offer many advantages. As the baby boomers age, the demand for funeral homes and end of life arrangements will continue to grow. Funeral homes will require better financial protection to ensure they can stay in business.
If you are interested in learning more about funeral funding, contact us. We can help you understand the benefits of this type of service for your financial future.
What’s in the Forecast for Funeral Funding? – Part 1
Funeral funding already provides many funeral homes with the steady cash flow they require to maintain operations and give families the support they need through difficult times. While funeral homes would typically receive a payment from the life insurance company, funeral financing gives them access to funds immediately instead of waiting for claims processing. As you consider your business in 2014, it is essential to understand the future of funeral finance and how it could influence your bottom line.
The Solution for Accounts Receivable Issues
Many funeral homes experience difficulties with their accounts receivable departments due to any delay of payment caused by the life insurance company. Some funeral homes are too small to hire the appropriate staff to handle this aspect of the business. Others are weary of fighting for the payments insurance companies or families owe. Working with a funeral funding company can resolve these issues, putting the tedious work of tracking down payments in the hands of a company that is dedicated to managing these tasks. With the number of funeral homes that experience these issues, funeral financing has become a popular trend.
A Faster Funding Option
As funeral homes realize the need for a steady cash flow, they are more likely to consider the benefits of funeral financing for their business model. Funeral finance can offer a long list of benefits to funeral homes so they can provide a higher quality of service to the families they serve.
With proper financing, funeral homes don’t have to wait to be paid, face the decision of asking a grieving family for a payment upfront or run the risk of not being paid or reimbursed. A funeral funding company can provide the money to the funeral home in a timely manner in addition to handling the insurance assignments.
Avoiding Costly Mistakes
Accounts receivable is an often complicated process that can lead to costly mistakes, especially for funeral homes that don’t have a dedicated accounts receivable staff. Working with a funeral financing company provides funeral homes with the peace of mind that they will get the money they need to cover the funeral families have planned. The funeral finance company handles all aspects of collecting on the debt, ensuring that funeral homes can continue to function.
For now, funeral funding offers services that some funeral homes use on a regular basis. While other funeral homes feel funeral finance is only needed for companies that are struggling financially or experiencing other difficulties, in the future, it will be a useful option for every funeral home. Those that turn to funeral financing now and in the future will experience the benefits of a smoother cash flow and work process.
If you are interested in signing up for funeral funding, contact us. We can help you build your cash flow and avoid costly accounts receivable mistakes.
7 Substantial Benefits of Funeral Funding
Many funeral homes are now using funeral financing as a way to allow individuals to pay for their loved one’s funeral without having the cash on hand to pay for everything upfront. While this has become a valuable tool for individuals who have not yet received their insurance payments, economic times have made this a risky option for many funeral homes. However, it can be helpful to offer funeral funding for your clients. Learning the top benefits for providing funeral finance options will help you make the right choice.
Eliminate Accounts Receivable
When you work with a funeral financing company, you won’t have to worry about your accounts receivable. They will handle it all for you. This can significantly reduce your operating costs by hiring fewer staff and dedicating less time to completing the accounts receivable processes.
Little Risk to You
Trusting your clients to make their payments on time can create a high level of financial risk. Working with a funeral funding service that helps with funeral finance options will eliminate this risk. You will have someone working for you to collect the funds directly from the insurance payout.
A Web-Based Claims Process
Processing claims can be a tedious procedure. Working with a company on funding options will allow you to use a web-based claims process. All you need to do is enter the information online, and the funeral finance company will handle the rest for you.
Payments Sent Directly to You
When you receive payments from any other source, you must send out invoices and wait for the clients to send their payments to you. If they don’t pay, you will have to use your collections system. Instead, all you need to do is to wait for the payments to be sent directly into your account once the claim is completed.
Deal with One Company
Individuals often use one of many insurance companies located throughout the country. This can be tedious and time-consuming for funeral homes. Instead, working with a funeral financing company allows you to deal with just one company that will handle all the various insurance companies for you.
Low Fees
One of the biggest complaints funeral homes have when they work with a funding company is the high cost of fees charged. If you choose your funeral funding company carefully, though, you can enjoy lower fees, which mean more net income for your funeral home.
Fast Funding Options
Giving families a break by allowing them to plan and hold the funeral before the funding is complete reduces their stress. However, it can be difficult for funeral homes to absorb the costs for a long period of time. With a funeral financing company, you don’t have to. They typically provide the funding within 24 hours after verification. Using a company that specializes in funeral finance is an ideal option to keep your operating costs down and improve the cash flow for your funeral home.
If you are interested in helping your clients plan a stress-free funeral without the usual financial risk involved, contact us for more information. Mortuary Financial Services has provided clients with all of these funeral funding benefits for more than 30 years.
Funeral Funding Myth-Busters
Many funeral homes and cemeteries have heard of funeral funding. However, some of these facilities are hesitant to use these services mainly due to a lack of knowledge of the benefits and increased cash flow that can be obtained by using a funeral financing company. They may fear that it will have a negative impact on their available resources. Unfortunately, much of the information that is available about funeral finance companies is either incorrect or a twisted version of the truth. Uncovering the advantages of funeral funding will help you make the right decision for your business.
The Fees Affect Your Bottom Line
One of the biggest concerns funeral homes and cemeteries have is the impact of any fees the funeral financing company may have on a company’s bottom line. This can be a valid concern; however, most funeral finance companies do not charge large fees for their services. If you calculate the cost of the fees versus the cost of handling your accounts receivables on your own, including hiring someone to manage this area of your business, you will discover that the fees may actually have a positive impact on your cash flow, resulting in more money from each transaction. In many cases, these fees may also be charged to the families instead, increasing your profits even further.
Only Struggling Facilities Need Funeral Financing
While struggling funeral homes and cemeteries are more likely to benefit from these services, they are certainly not the only ones who can use funeral funding. This type of service has a history of making funeral-related businesses more stable, as well as creating a steady flow of income to help with paying bills. It also benefits families by allowing them the option to upgrade any services that would otherwise be unattainable due to the cost and unavailability of funds. With these services, customers will be able to access any life insurance money in a timely manner without having to wait for the payment process to be completed.
Insurance Assignments Come with a High Risk
Some funeral homes and cemeteries refuse to handle insurance assignments because they feel there is a high risk of not being reimbursed for their services. Overall, this risk is quite small, but if a funeral facility uses a funeral finance company to handle their insurance assignments, this risk is reduced even further. The funeral funding company works directly with insurance companies, allowing funeral homes and other facilities to provide resources for families right away instead of waiting for the insurance payments. Funeral financing is a relatively low-risk operation and requires little to no work on the part of the facility.
Hiring a funeral funding company may seem like a risk that can affect your financial outcome. This is often not the case. As long as you do your research before choosing a company, you will find much of the negative information you have heard about funeral financing is not true. Instead, this can be an effective way of improving your cash flow and reducing the amount of work for your business.
If you are interested in working with a funeral funding company to improve your cash flow and better serve your clients, contact us for more information. Mortuary Financial Services has been financing funerals for more than 30 years.
Verifying Life Insurance: What to Look For
Before you offer funeral financing to individuals, it is important to verify their life insurance policy to ensure money will be available. Without the insurance verification process, it can be risky for a funeral home or other facility to provide funeral funding to families. Just because an individual had a life insurance policy doesn’t mean it will be accessible when it is time to pay it out. Therefore, you need to know what to look for so you can feel more confident offering your clients’ funeral finance options.
The Top Three Problems
The first step in the insurance verification process is to look for one of the top three problems. Each of these problems can have a negative impact on whether you will be paid after the funeral funding is completed. The three questions a funeral financing company should ask include:
- Have the premiums been paid on the insurance policy?
- Is the insurance policy contestable?
- Are there any liens or loans taken out against the policy?
If the premiums have not been paid, the policy is contestable. If there are liens or loans against the policy, allowing the family access to funeral finance options is a riskier venture. A funeral funding company can track down the answers for you, saving your company time and money.
Funeral Financing Safeguards
Funeral funding companies offer many advantages that funeral homes and other facilities can’t provide on their own due to time restrictions and staffing concerns. These companies have safeguards in place that provide an effective insurance verification process. Safeguards include:
- A Tracking System – This system follows accounts through every step of the process so you can see what is happening and what will happen next.
- CPA – A funeral finance company with an on-staff CPA offers additional safeguards. CPAs are often familiar with insurance companies and can help the financing company make the right decisions.
- An Attorney – Another great asset of a funeral financing company is one that has an attorney working directly for them. This attorney can assist with any legal issues, especially those regarding collection.
What Is Non-Recourse?
One concern many funeral homes and other similar facilities have is what will happen if the insurance company doesn’t pay out the funds to the funeral funding company. If you aren’t careful about the company you choose, you could be held liable to pay back this amount. For this reason, it is critical to choose a funeral finance company that offers non-recourse funding. With this type of funding, you will not be responsible if the insurance company doesn’t pay out the promised amount.
As you consider your options in funeral funding, it is important to understand why working with a funeral finance company is your best option. These companies have the right safeguards in place and know what to look for to ensure payments are made through the individual’s insurance policy. Without a funeral financing company, this can be a risky and time-consuming endeavor.
If you are interested in working with a company on your funeral funding needs, contact us for more information. Mortuary Financial Services features all the funeral financing safeguards, as well as non-recourse funding.
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