With cash flow solutions being my primary emphasis in my consulting business for at need services, I am continually confounded when I learn that a funeral home does not utilize an insurance factoring company. As many know, I pretty much believe in the “I’m not going to tell you to go to hell. I’m going to tell you the truth and it feels like hell.” The truth: Wasting in-house resources (time, personnel, effort, and overhead) to collect insurance is ridiculous. Now, you may not feel like hell, but you may feel unenlightened and marginally distraught.
If you don’t know how this works, please allow me to enlighten you, and in the process, offer your the families you serve, you, peace and payment! When a family presents you a life insurance policy for the deceased, you may tell the family member that you will accept the policy to pay for their loved one’s funeral expenses. However, the policy must be valid, non-contestable and the beneficiaries must assign the funds necessary to pay for the expenses to the funeral home. Tracking so far?
At this point, you also inform the family that your firm has engaged a company that will confirm the viability of the policy, accept assignment, and pay your funeral home the proceeds directly. If the policy has more funds than what is needed for funeral expenses, the company will send funds to the family in about 4-6 weeks. The fee for this transaction is .0x% and that fee will be taken from the life insurance proceeds. So, by using this process, your loved one has provided you a gift of life insurance to pay for their funeral expenses and it is a cashless event…no money out of pocket.Peace.Payment.
I can hear the rumbling and grumbling from the unenlightened. “I don’t want to charge a family a fee.” Let me ask this question, Skippy: “Why not?” At best, Miss Edna is going to make several phone calls to insurance companies trying to track down your money…yes, it’s your money. Why are you going to wait the customary 3-4 weeks for your money? The family will pay for the convenience and relief of a “cashless event.” Oh, another question, Skippy:“Have you ever conducted the service, buried the casket or cremated the body prior to learning that the policy is not viable?” Brilliant. Now Miss Edna is on the phone trying to get the firm paid and guess what the family will tell you: “We don’t have that kind of money.” Miss Edna just has to become a collection agent because you refuse to use common sense and sound business practices.
Peace and payment for both you and the family. The family will pay the fee, certain they wont have unexpected bill later; you will get paid with surety and faster. If the policy is declined, you know immediately and deal with it before the service. Read what I rant and write, DO NOT SIGN A FUNERAL CONTACT UNTIL PAYMENT IS SECURED!
This is one of many steps in the business of doing business that will keep your firm in a $0.00 accounts receivable status. Yep, I’m smoking a 6×6 Maduro blowing a thick cloud of smoke on the observation platform of the Command Post (West). Cheers Y’all! #thefuneralcommander