Comparison of Preneed Funeral Trust Vs.

Preneed Funeral Insurance

PRENEED FUNERAL TRUST PRENEED FUNERAL INSURANCE

CURRENT LAW

Long allowed under provisions of the Illegal in N S most proactive State law in the nation By funeral directors acting on &ehalf of Through funeral directors who are the consumer licensed agents for insurance companies ) es Commonl* +), No0 Su&1ect to terms of polic*

!"W IS IT "##ERE$%

C"''ISSI"NS TA(EN C"NSU'ERS- .RENEE$ #UN$S S.ECI#ICALL .R"TECTE$ / LAW% 'E$ICAI$2SSI ELI3I/ILIT %

es0 #unds are placed in special .urchasing a polic* ma* render an irrevocable funeral trusts4 which have individual ineligi&le for the same legal protections as revoca&le 'edicaid2SSI funding funeral trusts4 and are not counted as a resource

."RTA/ILIT 2TRANS#ERA/I es0 /eneficiaries ma* change4 close4 No0 /enefits can onl* &e paid to the LIT or move their account 5principal 6 funeral director or firm designated as interest7 to another funeral home at an* the &eneficiar* upon death4 time restricting consumer choice ."TENTIAL L"SS "# /ENE#ITS% No0 #unds placed in trust 5along with Consumers ma* lose all &enefits if interest7 are the propert* of the the* stop pa*ing for the insurance4 consumer4 and ma* &e recovered at an* move out of state4 or if the funeral time 5e8cept for 'edicaid2SSI home &eneficiar* changes irrevoca&le trusts7 es0 Cancellation or termination of polic* would result in all monies paid &eing forfeited and 9coverage: lost

."TENTIAL L"SS "# #UN$S% No0 All monies placed in trust earn interest and are owned &* the consumer4 who receives periodic financial statements a&out their funds ACTUAL ;ALUE T" T!E C"NSU'ER%

.reneed funds placed in trust safel* and Consumers often pa* more in steadil* gain interest< this almost premiums than the pa*=out 59cash:7 alwa*s covers the costs of the value of the polic*4 ma>ing this a &ad consumer-s selected merchandise and financial investment even aside from services the ris>s of the polic*

W!" IS T!E /ENE#ICIAR % The individual for whom the funeral or A specificall* designated funeral &urial prearrangements have &een made firm or funeral director SALES EN;IR"N'ENT% Consumers come to funeral directors /esides turning funeral directors into

with their ver* personal wishes and needs? 9rela8ed4 consumer=driven:

an 9insurance sales force:4 it could also lead to telemar>eting and other unwelcome sales tactics? 9heated4 commission sales=driven: Insurance companies can unilaterall* change the terms at an* time4 leading to une8pected financial e8posure and added emotional grief

."TENTIAL C!AN3E IN TER'S%

"nl* at the consumers direction

C!AN3E IN ;ALUE%

All funds placed in trust earn interest4 .olicies seldom >eep pace with which the &u*er is entitled to appl* to inflation his2her funeral and &urial e8penses