Thinking About Getting into Pre-need

[xrac]

.....It's two different mentalities. One group knows how to handle money and they usually have acquired wealth. The other group never figured money out and has never accumulated much.........

Newby, I would assume that many with this mentality don't do preneed to make sure the money will be there because they have got that covered but to take the pressure and grief of that decision making process off of their loved ones who survive them. They are forward thinking people who either want to take the burden off the loved ones or they like to keep all decisions in their own control.

 

[Newby]

Newby, I would assume that many with this mentality don't do preneed to make sure the money will be there because they have got that covered but to take the pressure and grief of that decision making process off of their loved ones who survive them. They are forward thinking people who either want to take the burden off the loved ones or they like to keep all decisions in their own control.

Exactly. They have a lot of money and paying for the funeral is not the big problem. They just want to be responsible and not dump it on their kids. Same reason some people do a will and other estate planning.

Others ignore all of it and let the chips fall.

 

[shonceman]

I would like to learn more about this as well. I run into folks out there every now and then with pre-need plans, but it seems like they are usually for 5000 or something, not enough coverage. Well, this one guy I saw one time had one for 5K. other people I've seen have them for like 7,500 and such. I guess the good thing is they lock the price down for the funeral so it does not go up with inflation.

HS, I've looked into this in Texas, and have been told by several people on both sides that if you get into pre-need, you need to be able to focus on it exclusively. Part of the reason is that in TX this business falls under 3 different regulatory bodies (banking, insurance, and funeral services commissions). These aren't always complementary. And, as Newby has said, it's really two very different markets.

Like you, I occasionally run into someone on my home service agency who has a preneed policy in effect. More often, though, I encounter people who started preneed policies but then weren't able to keep them up because the monthly outlay was just too high for them to continue. This is why so many funeral homes here also sell stipulated premium policies, so that when it's clear that their client can't afford the preneed, they'll have something to pivot to.

The regulatory environment, the inappropriate nature of the product for most of my clients, and not wanting to lose focus on my primary market led me to decide against getting into it.

 

[HomeService]

HS, I've looked into this in Texas, and have been told by several people on both sides that if you get into pre-need, you need to be able to focus on it exclusively. Part of the reason is that in TX this business falls under 3 different regulatory bodies (banking, insurance, and funeral services commissions). These aren't always complementary. And, as Newby has said, it's really two very different markets.

Like you, I occasionally run into someone on my home service agency who has a preneed policy in effect. More often, though, I encounter people who started preneed policies but then weren't able to keep them up because the monthly outlay was just too high for them to continue. This is why so many funeral homes here also sell stipulated premium policies, so that when it's clear that their client can't afford the preneed, they'll have something to pivot to.

The regulatory environment, the inappropriate nature of the product for most of my clients, and not wanting to lose focus on my primary market led me to decide against getting into it.

I have some contracts with stipulated premium companies. I need to approach some funeral homes I guess, they can write under me, no license needed.

 

[shonceman]

I have some contracts with stipulated premium companies. I need to approach some funeral homes I guess, they can write under me, no license needed.

What stip companies are you writing?

 

[HomeService]

What stip companies are you writing?

well, it's only one, really, right now. I will pm you.