Can't Name Funeral Home Beneficiary on Life Policy?

[Russ]

I have a lady that has a life policy with me that tried to name the funeral home as her beneficiary. Has anyone heard that a person can't name the funeral home as the beneficiary in Florida? She had originally named her estate as the beneficiary and then about a year later decided to change it to the funeral home. The company wouldn't accept it for the reason I stated...in Florida it's not allowed.

That's a new one on me.

 

[SCLady]

What happens if they go out of business? How much is the policy for? Not more than the cost of the funeral, right? LOL

 

[Mark]

I see nothing wrong with it. But Florida is a tough state.

Most of the time after a policy is in force you can change the beneficiary to just about anyone in most states. That is how the life settlements companies end up buying polices. I would think the funeral home would have an insurable interest also.

Something must have happend in FL for the Ins Dept to make this change. I would still call some other companies or even the ins dept to ask them if this is allowed or not.

I use to write some policies and make the church the beneficiary to the policy. On lower face amounts this was allowed.

 

[Russ]

What happens if they go out of business? How much is the policy for? Not more than the cost of the funeral, right? LOL

$1,500.

Good question you asked....I guess you would change it.

I asked her if she has a family member she could or would name...she said no. The way she acts I wouldn't claim her either. She bought a med-supp from me with Continental Life back in 2006 and to get extra commission, you had to write a life policy with it. She bought the least amount you could get. She has a lady friend(that also has insurance with me), she hangs out with a lot. I would have named her.
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I see nothing wrong with it. But Florida is a tough state.

Most of the time after a policy is in force you can change the beneficiary to just about anyone in most states. That is how the life settlements companies end up buying polices. I would think the funeral home would have an insurable interest also.

Something must have happend in FL for the Ins Dept to make this change. I would still call some other companies or even the ins dept to ask them if this is allowed or not.

I use to write some policies and make the church the beneficiary to the policy. On lower face amounts this was allowed.

Thanks....I'll find out Friday. I know I've done this for others in the past and it always worked.

 

[Newby]

I have a lady that has a life policy with me that tried to name the funeral home as her beneficiary. Has anyone heard that a person can't name the funeral home as the beneficiary in Florida? She had originally named her estate as the beneficiary and then about a year later decided to change it to the funeral home. The company wouldn't accept it for the reason I stated...in Florida it's not allowed.

That's a new one on me.

There is no reason to name a funeral home as a beneficiary on a life policy. People who do that are usually confused. There always has to be a person in charge of the funeral arrangements when they die and that person would be better off to be the beneficiary.

Sometimes people think naming the funeral home as the benny will exempt the policy from Medicaid but that is wrong. The funeral home must be made the OWNER of the policy as well as irrevocable beneficiary to make it exempt from Medicaid.

They shouldn't have the estate named as beneficiary either. You always want a live person. If the estate is the benny it will be tied up in probate and would never be usable for the funeral unless the funeral home is willing to wait a LONG time for their money (most won't.)

Most funeral homes require payment BEFORE service these days. They will require the beneficiary to assign the policy to an advancing company that will pay the funeral home immeadietely and the advancing company will wait to collect their money from the insurance settlement (at about 30 to 60% apr)

 

[Russ]

There is no reason to name a funeral home as a beneficiary on a life policy. People who do that are usually confused. There always has to be a person in charge of the funeral arrangements when they die and that person would be better off to be the beneficiary.

Sometimes people think naming the funeral home as the benny will exempt the policy from Medicaid but that is wrong. The funeral home must be made the OWNER of the policy as well as irrevocable beneficiary to make it exempt from Medicaid.

They shouldn't have the estate named as beneficiary either. You always want a live person. If the estate is the benny it will be tied up in probate and would never be usable for the funeral unless the funeral home is willing to wait a LONG time for their money (most won't.)

Most funeral homes require payment BEFORE service these days. They will require the beneficiary to assign the policy to an advancing company that will pay the funeral home immeadietely and the advancing company will wait to collect their money from the insurance settlement (at about 30 to 60% apr)

This lady is loose in the brain....yeah, I knew that about not naming the estate and agree with naming a person vs. a funeral home. She has a close friend that she hangs with a lot that she could name. She's just being an asshole about it. I'm gonna check with other companies tomorrow just to verify if that's the case(funeral home not allowed as beneficiary in Florida).

I hate losing business, but considering I make a whopping $1 a month in renewals on this 3 year-old policy, good riddance to her. She still has her med-supp with me and Continental Life has paid a great deal in claims on her.

She was also telling me yesterday that she has dropped/switched her PDP plan from what she had with me(AdvantraRX), to Wellcare. She was mailing in a coupon each month, but told me she couldn't because she was in the hospital for awhile. She's feeding me a line of BS...Coventry will keep a policy active up to 90 days from a premium due date.

 

[tryan326]

I wouldn't recommend them put the funeral home as the ben. Why not just keep it part of her living trust or list a trustworthy family member?

 

[Ray Ray]

I know Funeral Homes must follow legislation that is unique. Can the Funeral Home create a debt owned to them by the Policyholder and establish an insurable interest in that way? Otherwise a trust directing the life insurance benefit be used to pay final expenses is the best way to set it up.

 

[James38]

This lady is loose in the brain....yeah, I knew that about not naming the estate and agree with naming a person vs. a funeral home. She has a close friend that she hangs with a lot that she could name. She's just being an asshole about it. I'm gonna check with other companies tomorrow just to verify if that's the case(funeral home not allowed as beneficiary in Florida).

I hate losing business, but considering I make a whopping $1 a month in renewals on this 3 year-old policy, good riddance to her. She still has her med-supp with me and Continental Life has paid a great deal in claims on her.

She was also telling me yesterday that she has dropped/switched her PDP plan from what she had with me(AdvantraRX), to Wellcare. She was mailing in a coupon each month, but told me she couldn't because she was in the hospital for awhile. She's feeding me a line of BS...Coventry will keep a policy active up to 90 days from a premium due date.

I'm a little confused, What harm would it do to make the benny to a funeral home, if you have a 10,000 policy the cost of a funeral today would take the full amount, If the policy has a benny then it would be separate from the person's estate, I fill the reason to make funeral home a benny it assures the person that their funeral will be paid for, if you name an sole person then you would have to put it in your will that the benny is required to use it for your burial. without doing that they benny could just cash in on the policy and not pay for your burial. Just saying, I mean if a person is paying for the policy then it should be their choice to put whomever or whatever they want to as the benny without any laws in the states telling them they cant. But has far as Russ going as far as calling the lady an asshole just because things wasn't going his way, that was really a low blow to that lady for making such a rude statement, I mean if they lady was kind enough to give you her business then you should have been giving her the respect, Statements like the one you made is what turns people against insurance companies and doesn't trust them, The remark really doesn't show much class for you or the company you work for, You should call the lady and tell her your sorry and do the right thing. As we all know most people do leave life insurance policies to a person and not a funeral home, but it should still be our choice to make the benny anything we want to

 

[deadhead]

James you must be new. 1. after you've been in the business for a while you will discover there are people you wish you had never written no matter how badly you may have needed a sale that week. 2. You never want a funeral home as beneficiary. They will use up the entire amount no matter what the face amount is. You want the ben. to be someone trusted who will respect the money.