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.