The funeral industry is changing. Traditional viewings, wakes, and funerals are on the outs as people seek memorial celebrations that reflect who they are and the life they lived. For that reason, prearranged funerals are on the rise as more and more individuals take control of final funeral arrangements. This larger shift is driven by changing attitudes toward death and dying, resulting in an increasing demand for preneed funeral insurance.
People who arrange funerals before their deaths understand that their families don't want to talk about the end of their lives. Making funeral arrangements in advance can also lead to new insight for family members who may not otherwise be involved in planning a funeral.
When someone comes to your funeral home inquiring about preneed funeral services, it's important to understand the demographics of preneed clients. Here’s what you need to know about preneed clients and how to best serve them.
Quick links:
- What is Preneed Funeral Insurance?
- Why People Avoid Discussing Preneed
- Who Purchases Preneed Funeral Insurance
- 3 Things To Know About Preneed Clients
- Find an Insurance Partner Who Can Help
What is Preneed Funeral Insurance?
Preneed funeral insurance is a form of life insurance that covers the cost of your funeral. Preneed is also referred to as funeral insurance or final expense insurance. These cover any and all types of funerals.
Preneed insurance is fairly easy to qualify for and is low-cost. This is true even for individuals with health problems.
While many funeral directors treat preneed as a secondary offering, it’s important to remember that preneed services can provide a steady revenue stream for your funeral home. Fostering your community and building brand awareness through your marketing is key to this.
Why People Avoid Discussing Preneed
End of life planning is difficult for most families. No one wants to think about death, but having a funeral plan in place can ease the pain of losing a loved one and help you avoid possible financial hardship. There are many reasons why many people avoid discussing preneed, ultimately leading them to at-need funeral services.
- Fear of death: Surveys show that about a fifth of Americans fear death. This fear of death can cause families to avoid talking about what should happen to them or their loved ones upon their passing.
- Struggling with finances: Less than half of Americans can afford unexpected medical expenses. It can be difficult to justify spending money on a funeral when you’re not sure when there will be a need for one.
- Lack of awareness: Many people are unaware of preneed funeral services, and others may not know how to plan a funeral until they have to. They are often unaware of funeral prices, ultimately creating a stressful funeral experience.
As a funeral director, dispelling some myths around funeral planning can help engage your audience and relieve their stresses.
Who Purchases Preneed Funeral Insurance?
Individuals who are planning for their end of life purchase preneed funeral insurance to help lessen their family’s load upon their death. Seniors and other individuals in the funeral planning process will be inquiring about your preneed services, whereas family members of the recently deceased ask about at-need funeral costs.
Preneed clients come to funeral homes with many questions about the purchase of prearranged funeral services. They typically approach the purchase of prearrangement as a financial decision, and are concerned about being able to pay for the arrangements once their life insurance benefits have been paid out.
Although every client is unique, there are several questions that preneed clients commonly have, which can be useful to address. Being able to share the average funeral costs and a funeral cost breakdown can help your clients feel at ease, especially if you can share how preneed insurance can help with funeral costs.
3 Things to Know About Preneed Funeral Insurance Clients
Knowing more about your demographic can help you approach these sensitive conversations with compassion when marketing and selling. Here are three things you should keep in mind about preneed funeral insurance clients.
They’re Family-Oriented
Because the death benefit is used to cover funeral and burial costs, preneed insurance allows consumers to have a degree of control over their final expenses. It is becoming increasingly common for consumers to purchase preneed insurance as a means to assist family members who are left with the financial burden of a loved one's funeral and burial. Focus on how preneed insurance can benefit their whole family to help naturally make a sale.
They’re Seeking Independence
A common struggle among seniors as they approach the end of life is the loss of independence. Whether it be vision, hearing, mobility, or mental changes, the loss of independence can result in elderly depression. Preneed funeral insurance allows for seniors to take charge of their end of life planning. They can feel confident that their wishes will be met, and that their family does not have to take control of their funeral planning for them.
They’re Interested in a Custom Approach
Alternative funeral options are becoming increasingly popular. More and more people are open to a custom, personalized approach to their funeral arrangements. Cremation rates are at about 58%, and other cost-effective alternative options are on the rise too.
Alternative funerals include cremation, but can also involve different types of ceremonies (such as a celebration of life versus a standard funeral service) and other burial methods, such as eco-friendly burials.
Be sure to let your preneed clients know all of their options. Ask plenty of questions to get a sense of their personality and what their final wishes are, so you can be well-equipped to provide suggestions if they don’t already have a clear picture of what they want – especially since they may impact their funeral prices.
Find an Insurance Partner Who Can Help
At ELCO Mutual, we offer preneed insurance plans to those looking to lift the financial burden off of their families. We partner with funeral directors to best educate and provide for those beginning their end of life planning. Contact us today to discuss how we can best help your marketing and sales efforts.