Klicker Chapter 9 Flashcards Preview

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Flashcards in Klicker Chapter 9 Deck (20):

Pre need can be traced back to

Ancient Rome


What happened in ancient Rome?

Soldiers contributed to burial funds to insure burial with honor


In the United States, death insurance was created as a means to provide for burials in

Early 1880s


During this war, families contact embalmers who followed the major battles and paid them fees ahead of time to prepare their loved ones if they were killed

Civil War


Pre-need existed in relative obscurity until

Late 1970s early 1980s


Those funeral arrangements made in advance of need, including provisions for funding or prepayment

Pre-funded Funeral Arrangements


Funeral arrangements made in advance of need that do not include provisions for funding or payment

Pre-planned Funeral Arrangements


One in which the contract may be terminated by the purchaser at any time prior to the death with a refund of the monies paid as prescribed by state law

A Revocable Contract


One in which the contract cannot be terminated or canceled

An Irrevocable Contract


Where the funeral home guarantees that the services and merchandise will be provided at the time of need for an amount not exceeding the original amount of the contract, plus any interest, regardless of the cost of providing the services and merchandise at the time of death

Guaranteed Contract


When the funeral home only agrees that the amount prepaid plus any interest will be credited to the balance due. Price of the funeral will be whatever the current price is for the services and merchandise at the time the death occurs

Non-Guaranteed Contract


By virtue of personality, experience, and training, most funeral directors posses

Outstanding counseling skills


With counseling pre-need clients, the emphasis is not on grief counseling, but on dealing with

Issues of personal finance and allocation of resources


A non-assertive approach
Consumer receives pre-need information through brochures

Passive Pre-Need Program


Some states require 100% of the pre-need money be put in a trust/bank account. In this case, the family can do this at any time

Cancel the account


How can the trust be placed in the bank?

Individual in that each pre-need is in a separate account or combined in a master trust


This can also be used to pay for the pre-need funeral

Specialized Insurance Policy


What are the pros of pre-need (from a FD's perspective)

Extends family loyalty
Deters rising rate of cremation
Provides some element of control over cremation trend
Improves overall community awareness
Improves at-need business through increased community awareness
Broadens scope of services and overall family satisfaction
Survivors are also likely to pre-arrange


What are the cons of pre-need (from a FD's perspective)

Requires full scale marketing and support
Shortfalls may undermine profit
Trusts magnify shortfall potential


The most compelling reason for a funeral director to consider pre-need is that it is a proven way to

Secure growth and family loalty