|
Sorry this reply is four months after the post, but hopefully it can still help you as well as inform others of what is to be done.
First - Many funeral homes use insurance policies as funding vehicles for families to prepay funeral service expenses. There are a number of advantages to this, including:
- The ability of the client to make monthly payments over time (premium payments) and still receive the full death benefit if death occurs before premiums are paid. This may vary depending on health of individual and plan, so make sure it is clear.
- The interest on the insurance policy grows tax free, compared to the 1099-INT that is issued when funds are deposited in a local financial institution in trust.
- The policy is portable... you own it, can take it anywhere you wish, and in many cases, funds are available much faster after death.
- There are small commissions on these policies paid back to the funeral home. Hence the reason many funeral homes are still able to offer you a plethora of information and no-obligation preplanning services without fees.
NOW, in your case, we need to start with some basics:
First - What is your state's laws about prefunding of funeral services? This varies greatly from state to state and dictates what and when a funeral home must do with funds payed in before death. Contacting your state FCA office will greatly help as well as contacting other funeral homes via telephone. Most will answer you questions over the phone about where a funeral home must place the money, when it must be done, and how will you receive confirmation that it is done (you need not tell them your situation, simply say that you are interested in prefunding but are concerned about what happens to the money you give them, where it goes, and what if you move... this will get you the same answers you need).
Second - If they sold you insurance, they (and you) are not only governed (and protected) by the state board of funeral service but also the state insurance commissioners office. If you feel the funeral home is giving you a story and is not to your satisfaction, inform them that you will have to take it up with the state funeral board and state insurance commission because you still are not comfortable with what has happened and their explanation and solution is still not acceptable to you.
Third - You are fully entitled to receive an itemized price list as well as a statement of goods and services when arranging a service. I am sorry to hear of your mother's passing, and dealing with questions such as yours during the difficult time of a loss is not any easier. If the funeral home failed to provide this to you, ask them again to do so and remind them that the Federal Trade Commission requires them to do it and you would prefer they provide what they are supposed to before you need to file any type of complaint. They need to know that this issue bothers you and they need to fix it.
Like everything above, your best answers MAY come from the funeral home itself and without threat of escalating it to the next level. If they fail, then threaten to escalate... if they fail again, then most assuredly escalate it since your family may not be the only one to fall victim possible unlawful and unethical actions. Using the above information to let them know that you are aware of your options if they fail to satisfy your needs and concerns will show them you are in control of the process and it is YOUR questions that need to be answered.
As far as the insurance policy and reinstatement goes, the simple solution there is to call the insurance company, state your case, and ask for the payment history and in-force confirmation of your policy. It sounds as if the agent of the funeral home was collecting the premiums and then not submitting them. The funeral home, aware of this now, is submitting the premium as a single payment to ensure it is taken care of. No, you cannot reinstate back 5 years... which is unnecessary anyway since your husband is still living. In addition, if payments started and ended within this 12 month window you give, then it was only a 1 year payment option anyway... not that the insurance ends as well, the benefit is still paid in full but no more premiums are due. More importantly, you want ot ensure that the policy exists today for the need in the future (and that includes taking your money to another establishment if you so choose, again, check specific state rules on this as it varies).
Another point for all to remember... when using an insurance product and making premium payments, it is always safer and secure to mail payments directly to the company, not the agent, funeral director, or funeral home.
I hope this helps answer some of your questions and maybe some others who find themselves asking them too...
NS73
|
Favoured: 0
