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funeral direct ter 3
| Question | Answer |
|---|---|
| A transfer container consisting of a wooden tray with a cardboard covering for the casket. | Air tray |
| A certification/legalization of a document for international use (under terms of the 1961 Hague Convention). | Apostille |
| A legal document, issued by a governmental agency, authorizing transportation and/or disposition of a dead human body | Burial Transit Permit known as Disposition Permit. |
| A transfer container for uncasketed human remains consisting of a particle board tray with a cardboard cover | Combination case also known as Combo Case. |
| Any carrier required by law to convey passengers or freight without refusal if the approved fare or charge is paid (airline, train, etc.). | Common carrier |
| The offices of an official appointed by a government to reside in a foreign country to represent the commercial interests of citizens of the appointing country; e.g. the Russian consulate in Washington, D.C. | Consulate |
| One country's main diplomatic office in another country (usually in the capital city of the host country) where the highest diplomatic office is the ambassador. | Embassy |
| One of the categories required to be itemized on the GPL (if the funeral provider offers the service). This involves services of the funeral provider in the locale where death occurs and preparation for transfer to another funeral provider as selected by | Forwarding Remains |
| A business which has vehicles that people or other businesses can hire. | Livery |
| Those who transport only in particular instances and only for those they chose to contract with (e.g., funeral establishments vehicles and livery). | Private Carrier |
| One of the categories required to be itemized on the GPL (if the funeral provider offers the service). This involves services of the funeral provider after initial services have been provided by another firm at the locale of death. Funeral Rule requires p | Receiving Remains |
| The rules and regulations imposed by the state board of health governing the shipping of dead human remains, inter- and intra-state, | Transportation Regulations also railroad regulations. |
| A gasket-sealed container which can be used as an insert into a casket or a separate shipping container; | Ziegler Case also known as Metal Case. |
| A book or list of those attending the service; | Register Book (Registry or Memorial book) |
| A card with the name of the decedent and a prayer or verse, which may or may not include the dates of birth and death. | Prayer card |
| A pamphlet made available at the funeral service giving details about the deceased and the funeral arrangements | Memorial folders ; also known as Service Folder. |
| Cards of recognition sent for kindness shown to deceased's family; | Acknowledgement cards also known as Thank You Cards. |
| In the Roman Catholic Church, a record of personal information about the deceased given to the church by the funeral home for the church's permanent records. | Clergy record |
| Time set aside for friends and family the family and friends to pay respect for the deceased prior to the funeral service; | Visitation, calling hours, Visiting Hours. |
| To lay to rest. | Repose |
| A small bed or couch upon which the remains are placed for private viewing; | Visitation couch also known as Day Bed. |
| The entry way into the funeral home or church | Foyer (Lobby) ; also known as Foyer, Matrix, Narthex, or Vestibule. |
| A specially designed room in the funeral home where the remains lie in state from the time of embalming until service, affording complete privacy to family and friends. | Visitation room (Reposing room or Drawing room) |
| A room in the funeral home where funeral and memorial services are held. | Service room |
| That portion of the funeral home adjoining the visitation room designed for the privacy of the family. | Family room |
| A service room of a funeral home in which permanent pews or chairs are set up without having to move them for a visitation. | Formal chapel |
| A service room of a funeral home, in which the chairs are removed for the visitation, and then are set up in the room on the day of the service. | Informal chapel |
| A prayer or scripture service usually held at the funeral establishment the evening before the funeral; | Vigil also known as Vigil Service or Wake Service. |
| Historically, a watch kept over the deceased; an all-night vigil. | Wake |
| A stand on which a casket is placed for funeral service display. | Bier |
| A wheeled and collapsible stand for a casket. | Church truck |
| Stand-alone lamps that provide additional lighting for caskets during a visitation or funeral service; may have a colored bulb to provide "softer" lighting. | Torchiere lamp |
| An instrumental action dealing with death that is also expressional and that may or may not be charged with symbolic content expressing, among other things, the attitudes of the participants and possible onlookers (passive participants) who may be regarde | Ceremony ; also known as Rite. |
| Acts that are performed for a deceased in regard to funerals. | Burial rite |
| Historic term for funeral rites or burial ceremonies | Obsequies |
| Any event performed in a solemn and prescribed manner (according to prescribed customs, usually religious) in the burial of the dead | Rite ; also known as a Ceremony or Ritual. |
| A kind of instrumental action dealing with death that is also expressional (i.e. it is charged with symbolic content expressing, among other things, the attitudes of the participants and possible onlookers (passive participants) who may be regarded as co- | Ritual ; also known as Ceremony or Rite. |
| A room in the mortuary for the receiving and caring for flowers sent for funeral service. | Flower room |
| The rites held a the time of disposition of human remains, with the deceased present | Funeral service ; also known as Funeral Ceremony. |
| Funeral rites without the remains present. | Memorial service |
| The portion of a funeral service conducted at the place of disposition. | Committal service |
| A ceremony or ritual, religious or otherwise, conducted at the grave. | Graveside service |
| A funeral rite that follows a prescribed ritual or ceremony which may be dictated either by religious belief or social custom. | Traditional funeral |
| Religious oriented service that follows a more modern interpretation, including favorite music, poems, and readings. | Non-traditional funeral |
| A funeral rite that is in essence devoid of religious connotation. | Humanistic funeral |
| A funeral rite that is adjusted to the needs and wants of those directly involved; altered to suit the trends of the times. | Adaptive funeral |
| A funeral rite which may be construed as being identifiable with a pre-literate society. | Primitive funeral |
| An oration praising an individual, usually after death. | Eulogy |
| A mournful poem or song of lamentation for the dead. | Elegy |
| A desk so designed to facilitate the delivery of a lecture or sermon. | Lectern |
| The procession of vehicles from the place of the funeral to the place of interment; | Cortege also known as Funeral Procession or Procession. |
| Friends of the family or members of an organization or group who act as an escort or honor guard for the deceased, they do not carry the casket | Honorary casket bearer ; also known as Honorary Pallbearers. |
| One who actively bears or carries the casket during the funeral service and at the committal service; | Casket bearer also known as Pallbearer. |
| The act of placing the dead human body in the ground; also known as Inhumement or Interment. | Burial |
| Disposition of human remains by burial without formal viewing, visitation or ceremony with the deceased present, except for a graveside service. | Immediate burial |
| The act of placing the dead human body in the ground; | Interment also known as Inhumement or burial |
| To bury in the ground; | Inter (inhume) |
| The reduction of a dead human body to inorganic bone fragments by intense heat in a specifically designed retort or chamber. | Cremation |
| A furnace or retort for cremating dead human bodies; a building that houses a retort. | Crematory (crematorium) |
| The burning chamber in a crematory, also referred to as the crematory; the total mechanical unit for the cremation process. | Retort |
| Placing cremated remains in an urn. CANA definition: The act of placing cremated remains in a niche or grave. | Inurnment |
| A structure, room, or space in a mausoleum or other building containing niches or recesses used to hold cremated remains. | Columbarium |
| A recess or space in a columbarium used for the permanent placing of cremated remains. | Niche |
| A disposition of human remains by cremation without formal viewing, visitation or ceremony with the deceased present. | Direct cremation |
| The placing of a human remains into a crypt in a mausoleum. | Entombment |
| A chamber in a mausoleum used to safeguard casketed human remains. | Crypt |
| A building containing crypts or vaults for entombment. | Mausoleum |
| A form of disposition, following the appropriate rules and regulations, in which the deceased is placed in a body of water, such as an ocean. Requirements included 3 nautical miles from shore, a water depth of 600 feet, the container of the deceased is su | Burial at Sea |
| A process that uses water, alkaline chemicals, heat and sometimes pressure and agitation, to accelerate natural decomposition, leaving bone fragments; a form of final disposition. | Alkaline hydrolysis |
| The freezing and storing of human remains for possible restoration in life in the future. | Cryonics |
| Disposition without the use of toxic chemicals or materials that re not readily biodegradable. | Green burial |
| Eco-friendly approach that utilizes products, services and merchandise that are free of toxic/hazardous materials, are biodegradable or that minimize use of energy. | Environmentally friendly |
| Physical location and personal history surrounding the communication. | green Environment |
| A place of interment that bans the use of metal caskets, toxic embalming, and concrete vaults and may also require the use of aesthetically natural monuments. | Green cemetery |
| Death care that minimizes the use of energy in service offerings/products and that bans the use of toxic/hazardous materials. | Green funeral |
| One that takes place within the residence of the deceased as was commonly done in the United States until the mid-20th century. | Home funeral |
| The contained, accelerated decomposition of human remains. | Natural organic reduction |
| Dead human body intended solely for scientific study and dissection. | Cadaver |
| Legal term for a dead human body. | Corpse |
| An area of ground set aside and dedicated for the final disposition of dead human remains. | Cemetery |
| A non-permanent grave marker which identifies where an individual is buried. | Temporary grave marker |
| An erection of stone or other material commemorating the life, deeds or career of some deceased person. | Monument |
| A structure designed for the temporary storage of bodies which are not to be immediately interred. | Receiving vault |
| A cemetery, or section of a cemetery, with only flush to the ground type markers. | Memorial park |
| A general term designating those places suitable for the reception of a dead human body. | Tomb |
| An underground cemetery for burial purposes. Originated in ancient Rome as excavated cemeteries cut out of soft rock for the tombs of wealthy Christians; later became a place for religious rites to avoid persecution. | Catacombs |
| A group of grave spaces which are purchased under one title. The spaces (graves) in the plot, though usually side-by-side, may or may not be from the same section, block, or lot. | Plot |
| A subdivision of a cemetery which consists of several grave spaces or interment spaces. | Lot |
| The largest subdivision of a cemetery. | Section |
| A subdivision of a cemetery containing several lots. | Block |
| An excavation in the earth as a place for interment; interment space. | Grave |
| To remove from the grave or tomb; to dig up; exhume. | Disinter |
| A building or designated area of a building in which services are conducted. | Chapel |
| A monument erected to the memory of the dead, with the human remains not present. | Cenotaph |
| A commemorative inscription on a tomb or cemetery marker. | Epitaph |
| An imitation of grass made in mat form and used at the cemetery to cover the earth around the grave. | Artificial grass |
| A portable shelter employed to cover the grave area during the committal\ | Canopy ; also known as Cemetery Tent. |
| A portable shelter employed to cover the grave area during the committal | Cemetery tent ; also known as Canopy. |
| Webbing or similar material used for lowering the casket into the grave. | Grave straps |
| Mechanical device used to lower a casket into the ground. | Lowering device |
| One who is in charge of the cemetery; the caretaker of a church. | Sexton |
| Funeral arrangements made in advance of need that may or may not include provisions for funding or prepayment. | Pre-need |
| Funeral arrangements made in advance of need that DO NOT include provisions for funding or pre-payment\ | Preplanned funeral arrangements ; also known as Pre-Arranged Funeral. |
| Funeral arrangements made in advance of need that include provisions for funding or prepayment. | Prefunded funeral arrangements |
| An agreement which may be terminated by the purchaser at any time prior to the death of the beneficiary with a refund of monies paid on the contract as prescribed by state law. | Revocable contract |
| An agreement for future funeral services which cannot be terminated or canceled prior to the death of the beneficiary. 3 day window | Irrevocable contract |
| An agreement where the funeral establishment promises that the services and merchandise will be provided at the time of need for a sum not exceeding the original amount of the contract plus any accruals, regardless of the the current prices associated wit | Guaranteed contract |
| An agreement in which the funeral establishment promises to apply the amount pre-paid plus any accruals to the balance due. However, the cost of the funeral will be based upon the current prices for services and merchandise at the time death occurs. | Non-guaranteed contract |
| An account in which only one person's funds are placed in the account. | Individual trust |
| An account where the money from numerous individuals are placed into one account to provide a greater rate of return on the investment, though the balance for each account is kept separate. | Master trust |
| A life insurance policy taken out on the individual with two provisions; the funeral home is named as beneficiary of the policy and the policy is unable to be canceled (i.e. irrevocable); | Burial insurance also known as Death Insurance. |
| An insurance policy taken out on an individual and a beneficiary is named to receive the proceeds upon the individual's death. | Life insurance |
| An account where the funeral home can invest the money paid to them for a pre-need into an account or accounts of the funeral home's choosing provided the funeral home keeps the interest earned by each account separate. | Alternative trust |
| Type of funding used in a non-preneed environment to provide "stream" of uniform periodic payments made at specific intervals, with amounts earning interest; normally used as a form of tax-deferred savings, but may have specific, limited use in preneed. | Annuity |
| Difference between the single premium amount paid and actual death benefit (that increases over time) that will be paid out; | Bump-up amount also known as Value-Added Amount. |
| Amount of insurance provided by a preneed insurance policy that increases over time; | Face amount also known as Death Benefit. |
| A law that protects employees' health insurance coverage when they change or lose their jobs and provides standards for patient health, administrative, and financial data interchange; also covers the privacy and security of health information records and | HIPAA |
| Transfer of life insurance policy ownership rights to third-party; when allowed by law, consumer purchases policy and assigns payment of death benefit to a funeral home. | Life insurance assignment |
| A jointly-funded, federal-state health insurance program for certain low-income and needy people including children, the aged, blind, and/or disabled, and those eligible to receive federally-assisted income maintenance payments. | Medicaid |
| A federally-administered insurance program generally linked to receipt of Social Security benefits that are based on being age 65 or over or having a disability. It is NOT based on financial need and is NOT provided free of charge. It requires cost-sharin | Medicare |
| The specified amount of payment required by an insurer to provide coverage under a given policy. | Premium |
| A process of ensuring Medicaid and SSI eligibility through the reduction of assets and income below specific limitations. | Spend-down |
| A federal program that assures a minimum level of income to people who are aged, blind, or disabled and who have limited income and resources. | Supplemental Security Income (SSI) |
| An account established by one individual to be held for the benefit of another (as a method of payment of funeral expenses); creates a fiduciary responsibility. Money paid to a funeral establishment for future services is placed in an account with the fun | Trust account |
| A situation that occurs when the funds in a non-guaranteed pre-arranged trust are less than the total services and/or merchandise selected by the client family in an at-need situation. | Underfunding |
| Process of assessing and classifying potential degree of risk for purpose of issuing insurance. | Underwriting |
| Life insurance that gives lifetime protection to the insured person. | Whole-life insurance |
| When a death has occurred. | At-need |
| A means of supplying support after a death has occurred; those appropriate and helpful acts of counseling, personal and/or written contact that come after the funeral; | Aftercare also knowns as Follow-Up Services or Post-Need Services. |
| Two Classifications of Services listed on GPL ◦ Limited Service Calls | ◦ Forwarding of Remains ◦ Forwarding Funeral Establishment must be a registered Known Shipper ◦ Receiving of Remains |
| Two Types of Destinations | o Types of Destinations ◦ Domestic ◦ Internationa |
| Two Types of Transportation Providers | Common Carrier ◦ Required by law to convey passengers or freight without refusal if the approved fair or charge is paidPrivate Carrier ◦ Those who transport only in particular instances and only for those they chose to contract with |
| Common Carrier Oversight Shipping Protocols encased in a rigid container, constructed to withstand hazards associated with the method of transportation ◦ Bodies must be in a leak proof pouch or container to prevent the leakage of any body fluids | Bodies must be clothed or covered by a shroud of similar covering ◦ Body orifices must be closed with an absorbent cotton or other material |
| Common Carrier Oversight Shipping Protocols | A government issued transit or disposition permit must accompany remains and be available for inspection upon demand ◦ A name tag must be affixed to the body with the name as it appears on the transit permit along with pertinent information |
| Private CarrierShipping Protocols encased in a casket or container, or in a waterproof pouch, and steps must be taken to prevent the leakage of any body fluids from the container secured to a rigid stretcher or a cot, and obscured from public view | The interior of the vehicle and all associated equipment must be maintained in a clean and sanitary manner ◦ The remains must be accompanied by, and/or received by, a licensed funeral practitioner or other similar licensed professional |
| Private Carrier Oversight Shipping Protocols | The geographical area, distance of travel, and crossing of state lines may trigger additional limits or requirements, such as the need for a government issued transit, disposition, or other similar type permit to accompany the remains |
| Domestic Shipping of Human RemainsFORWARDING OF REMAINSContract with another funeral establishment Determine party responsible for travel paymentPay attention to airline shipping requirements | Must include copies of appropriate paperwork ◦ Death Certificate ◦ Burial Transit Permit ◦ Embalming Report, if embalmed ◦ Copy of Funeral Home bill, if applicable |
| Domestic Shipping of Human RemainsRECEIVING OF REMAINSMake contact with forwarding funeral establishment Make contact with family Determine party responsible for travel payment | Do not set services until you have possession of decedent Must receive copies of appropriate paperwork |
| International Shipping of Human RemainsFORWARDING OF REMAINSMust be a registered Known Shipper Notify and coordinate with consulate of receiving country Comply with customs regulations Strict adherence to receiving country’s rules | Translation of documentation Affidavit of “No Contagious Disease” Embalmer’s Affidavit Apostille Various fees and/or honorarium may apply Time delays are common |
| International Shipping of Human RemainsRECEIVING OF REMAINSContact US Embassy, Consulate, or State Department ◦ Outline options and cost of disposition ◦ Preparation of remains will be in accordance with law and custom of host country | Contact US Embassy, Consulate, or State Department ◦ Outline options and cost of disposition ◦ Preparation of remains will be in accordance with law and custom of host country |
| International Shipping of Human RemainsRECEIVING OF REMAINS | If no one can assume financial responsibility, the US Consulate must request the local foreign authorities to make appropriate disposition according to local law |
| Shipping of Embalmed Remains – Body PreparationPre-embalming Analysis of Decedent ◦ Body condition Embalm Using Appropriate Fluids ◦ Do not over-embalming Thoroughly Treat the Body | Bathe and Dry Completely ◦ Moisture encourages mold growth Pack all orifices Use of Plastic Garments ◦ Use hardening compound or mold inhibitor Dress the Body Restorative and/or CosmeticsShipping Container |
| Shipping of Unembalmed Remains – Body Preparation | Use of Dry Ice ◦ Hazardous material and must claim it |
| A transfer container consisting of a wooden tray bottom with a cardboard top covering for the casket. Used to transport casketed human remains. | AIR TRAY |
| A transfer container consisting of particle board box with a cardboard tray and cover to satisfy air shipping regulations. Used to transport non-casketed human remain | COMBINATION CASE |
| A gasket-sealed casket which can be used as an insert into a casket or used as a separate shipping container. | ZIEGLER CASE |
| Not okay to reuse…single use ONLY | T |
| Shipping of a Gasketed Casket by Air Travel Gasketed Caskets ◦ Provide an air tight sealDo not seal the casket ◦ Keep cap off end lock ◦ Place cap in labeled envelope inside of casket | End lock acts as a valve ◦ Allows for equilibrium of air pressures at high and low altitudes |
| Floral arrangements do not travel well –best practices would be flowers would not be sent | ◦ Domestic Shipping ◦ Delta Airline will allow for one floral spray ◦ International Shipping ◦ Not accepted |
| United States Postal Service (USPS) ◦ USPS Priority Mail Express – September 2019 | ◦ Identified with Label 139 “Cremated Remains” sticker affixed to all sides including top and bottom |
| ◦ 3 Requirements | Inner container must be stable, shock-proof, and sift-proof ◦ Requires full return and delivery addresses on outside of package ◦ Identified as cremated remains |
| Internationally Mailing ◦ Priority Mail Express International ◦ USPS Priority Mail Express Cremated Remains Box ◦ Identified with Label 139 “Cremated Remains” sticker affixed to all sides including top and bottom | ◦ Some countries do not allow for entry of cremated remains and need to double check with each embassy’s or consulate’s requirements |
| ◦ Similar Requirements as Domestic Shipping | Primary inner container must be a funeral urn ◦ Properly sealed and sift-proof ◦ Requires full return and delivery addresses on outside of package ◦ Identified as cremated remains |
| Identification Viewing ◦ Designed to verify identity of decedent ◦ Should be required for ALL cremations | ◦ Body is typically not embalmed |
| Pre-Visitation - Inspections | ◦ Step 1 – Conduct a Safety Inspection ◦ Step 2 – Check for Suitability Step 3 – Check for Cleanliness ◦ Step 4 – Verify Compliance with ADA ◦ Step 5 – Check for Environment Conditions |
| Good rule of thumb is setting up for the visitation should NOT be the first time in the facility | t |
| Requirements of Staff | Visibility ◦ Family and Public ◦ Courteous and Friendly ◦ Willingness to Help ◦ Familiarity with facility, funeral home procedures, and individual case |
| Responsibilities of Staff | Escort family to proper areas ◦ Greet / direct visitors to proper areas ◦ Invite visitors to sign register book Oversee / maintain facilities and deliveries Oversee ceremony / service during visitation, if applicable Dismiss at conclusion of visitati |
| Post-Visitation | Send home memorial envelopes and contributions with familyClean visitation room and other public areas Check deceased Check memorial folders left |
| Levels of Personalization Level 1 – Bronze Standard ◦ Remolded traditional funeral with photo boards and props | Level 2 – Silver Standard ◦ Level 1 plus change of location or sharing time ◦ Emphasis on “stuff” Level 3 – Gold Standard ◦ “Wow” factor ◦ Personalization down to every detail ◦ What was meaningful to the deceased |
| Entombment Why? ◦ Do not prefer ground burial ◦ No outer burial container required ◦ Climate controlled, if inside | Considerations ◦ Casket requirements ◦ Embalming requirements |
| Why Chose Cremation? | Higher education ◦ High income ◦ Less religious ◦ More mobile/less family roots ◦ Money conscious ◦ Land conscious |
| Donation to Medical College/Institution ◦ Time Requirements for each institution ~ Be Aware ◦ Example of time constraints ◦ 8 hours to get to college without arterial embalming ◦ 72 hours to get to college with arterial embalming only (no cavity) | Completed donation ◦ Up to two years ◦ Full Body or Cremation ◦ Return to family or Institution burial |
| Disposition at Sea EPA has general permit under Marine Protection, Research and Sanctuaries Act | Requirements ◦ 3 nautical miles out (1.151 miles or 6, 076 feet) ◦ Water depth of 600 feet or 1800 feet in some areas ◦ Container weighted so it will not float ◦ Container has holes drilled in it to allow water to fill it and sink to the bottom |
| Cryonics | Body is stored at temperature lower than negative 120 degrees (-120 F) |
| Natural Organic Reduction (NOR) | Human Composting |
| Cortege Order | Lead car ◦ Funeral Director or Escort ◦ Clergy ◦ Honorary Casket Bearers ◦ Casket Bearers ◦ Casket Coach ◦ Family ◦ Friends |
| ◦ Clergy stands at head of casket / urn | t |
| Pre-Need ~ Why? | Consumer attitude • Make own choices • Rational choices • Reduction of assets • Financial burden on survivors • Funeral Home Client Base |
| • FH wants a guarantee that: | When the prepaid funeral is provided, it will be as least as profitable as the same funeral arranged at-need • The costs of the pre-need promotion arrangements, and fund management are covered when the funeral is actually provided (without compromisin |
| • The consumer wants a guarantee that: | Payments being made will completely fund all funeral expenses at any time in the future • Real value for the money they've spent will be received |
| • Guarantees the funeral price in an at-need situation for the consumer • There will be NO additional charges for services or merchandise | The customer selects and pays for a funeral (services and merchandise) at today's prices and receives the same funeral in the future without having to pay any difference or increase in cost. |
| The interest that accrues in the trust fund will cover the increase in cost that occurs over the life of the pre-arranged funeral | individual pre-plans and pre-funds all services and merchandise for their funeral. The total cost comes to $8500. The interest that accrued while in the trust over those nine years is used to cover the increase in cost. |
| Non-Guaranteed Contract • The customer simply deposits an amount of money with the funeral home (and may or may not select services or merchandise) | At the time of need (when the customer dies), funeral arrangements are selected and funds in the trust are applied to the cost of the funeral. |
| If the funds in the trust are less than the total funeral costs, the family may be charged the difference. This is called “under-funding” | If the funds in the trust are more than the total funeral costs, the overage may be refunded to the family. This is called “over-funding” |
| Pre-Need ~ Types of Funding | Trust Accounts • Individual • Master • Insurance • Burial/Death • Life • Other methods (historically, not used presently) • Alternative Trusts • Joint Bank Accounts |
| Trust income (i.e. "interest") is subject to federal taxation. • The purchaser must pay income taxes on an annual basis. • The purchaser or another person(s) may be the trust beneficiary. | money paid to the FH is usually deposited into a trust fund by the FH owner/manager on behalf of the client • The money is generally tied to a specific pre-arrangement amount determined at the time the customer pre-plans his/her funeral. |
| Qualified Funeral Trust (QFT) | A trust that allows the trustee (i.e. the funeral home, not the purchaser) to pay the tax on annual earned interest using trust earnings (i.e. interest), thereby eliminating the need to send IRS Form 1099 to the consumer (purchaser) each year. |
| • Non-Qualified Trust | Trust income (i.e. "interest") is subject to federal taxation and is paid by the purchaser annually. |
| • Most states have a "trusting percentage" requirement that mandates how much of the pre-paid money is to be trusted. • Many states (over half) have a "100% law" that requires a funeral home to deposit or trust ALL of the pre-paid funds | Some states have a"90/10" law (Iowa is 80/20) that requires only 90% of the funds be trusted. • 10% (20% in Iowa) can remain untrusted and used at the discretion of the funeral business (or as directed by state law.) |
| • In states where trusting laws are not 100%, a funeral home that does NOT trust 100% must purchase a minimum bond to cover their pre-paid contracts | t |
| Pre-need Insurance is a form of whole-life insurance with specialized features including a set face amount and increasing benefits used to fund pre-determined expenses of a funeral, cremation, or burial | Proceeds (interest) are not taxable as income, regardless of the face amount of the policy |
| All pre-need insurance policies have an increasing benefit. • This face amount (aka death benefit) increases over time | A premium is the specified amount of payment required by an insurer to provide coverage under a given policy. • In pre-need insurance, this premium may either be a lump sum (in the amount of the selected funeral arrangements) or over a certain period of |
| Annuity • A funding vehicle that is generally associated with paying out supplements to retirement income; they are technically NOT life insurance contracts. | • In funeral service, this type of funding vehicle is often set up to provide a "stream" of uniform periodic payments to be distributed at specific, regular intervals over a specified period of time. |
| Life Insurance Assignment • An assignment occurs when a policyholder transfers ownership of that policy to a third party. | t |
| Spend-down • This is a process of ensuring Medicaid and SSI eligibility through the reduction of assets and income below specific limitations. | It is a VERY common practice among families who need to qualify an elderly parent (or• Before the person becomes eligible for state/federal aid, many states require a pre- need contract to be "irrevocable" relative) for this financial assistance. |
| Be careful, make the consumer aware of nature of these items and lack of control over prices by the funeral establishment | Best practice would be to put cash advance items on a separate contract • Non-guaranteed |
| Purchaser RequirementsName • Date of Birth • Social Security Number • Address • Telephone Number • Signature | Beneficiary Requirements • Name • Date of Birth • Social Security Number |
| Passive Program | Single avenue • Non-assertive • Limited staf |
| Active Program | Multiple avenues • Assertive • Dedicated Staff |
| Aftercare ~ Two Classifications of Services • Information Oriented Services • Non-dedicated Staff • Directory of area grief groups • Information materials | Direct Care Services • Dedicated Staff • Directory of area grief groups • Active grief groups • Remembrance services • Personal visit • Sending personal card/letter |
| • Typically begins the day after the service and runs 12 months | Aftercare |
Created by:
jcowing