Archive for the ‘preneed’ Category

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A cremation society is giving free teddy bears to hurt and dying kids. This is another promotion gone too far. The Teddy Bears are named after a Neptune Society customer who has been cremated. The  Teddy Bears are named on the one year anniversary of the persons death.

This is the same type of greed behind funeral and cemetery scandals. I found this in my local paper:

“The Neptune Society, the largest independent cremation company in the nation based in Des Plaines, is bringing comforting teddy bears to Chicago area children who are hurt, frightened or alone. The Neptune Society Teddy Bear Program names a teddy bear in honor of every person whose death care is handled by Neptune on the one-year anniversary of their death. The teddy bears are then donated to organizations such as Rainbow Hospice in Park Ridge and local fire departments to be given to a child in need.”

This type of marketing in death care is unacceptable. Even if it is a free give away.

They have had problems like this before. Several years ago they set out a mailer saying you could win a free cremation if you sent in a form with your contact information. This year they were fined 1.2 million in a preneed insurance scam by the State of Colorado.

This is deathcare gone too far. Where will it end?

Funeral Industry|Funeral Blog by Your Funeral Guy.


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Friday, August 7th, 2009
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Funeral Scandals need to be reported in order to save you money

Funeral Scandals need to be reported in order to save you money

Funeral scandals need to be reported because it helps the consumer come in under the average cost of a funeral.It also makes the consumer aware  of ways they can keep funeral directors honest. Researching funeral scandal is quite a boring task . The bottom line is funeral scandals are good for you if are not a victim.

Service Corporation has had  an extraordinary amount of  scandals this year. There are excellent SCI Funeral Directors out there. Some are my friends. Reports in the press and other places indicate a corporate cultural problem at SCI. It may be in the core culture of SCI Management.

The problem  some believe goes to the outdated  business model as reflected in recent numbers. The problems need to continue to be reported and brought to public and funeral directors attention.

It will be a great day when the company corrects the problem or funeral directors through self or State Regulators make the corrections needed.

The Illinois funeral Directors Association Preneed Ponzi scheme (IFDA) and the National Prearranged Services fraud have been blogged about because reporting on preneed scandals makes folks aware of the perils of preneed.  It helps people lower their

Dont throw your Money down the grave-Avoid funeral scandal.

Dont throw your Money down the grave-Avoid funeral scandal.

funeral costs and come in under the average cost of a funeral.

For these  reasons, it is best to make folks aware of reports in the press.

SCI 5 Scandals reported in the press this year

Funeral Industry| Funeral Blog by Your Funeral Guy.


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Saturday, May 30th, 2009
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Canada to start taxing funerals next year

Canada to start taxing funerals next year

As if Funerals were not stressful and taxing enough, CANADA will start taxing Funerals Soon.This according to the Toronto Sun. It appears that the taxes will not take place until 2010. The downside to all this is that preneed funds will be taxed at the time of the funeral. The average cost of some funerals in Canada will also rise. According to thestar.com:

May 27th 2009-”Premier Dalton McGuinty’s new harmonized sales tax on funerals and other goods and services is creating uncertainty around the two certainties in life: death and taxes.

That’s because after the levy takes effect on July 1, 2010, taxes on funeral services will jump from 5 per cent to 13 per cent – wreaking havoc for, among other people, the thousands of Ontarians who have already paid for their funerals before they die.”

Funeral Industry|Funeral Blog by Your Funeral Guy


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Thursday, May 28th, 2009
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Illinois Regulators have taken over part of Funeral Fund and have appointed themselves Administrators.

Illinois Regulators have taken over part of Funeral Fund and have appointed themselves Administrators.

The State of Illinois has Taken Over A Funeral Preneed Fund. This has to do with the Illinois Funeral Directors Association Ponzi Scheme involving a loss  of  a $59 Million dollars in 300 Million dollar funeral fund. This all happened on Wednesday May 20th 2009.

The Division of Insurance settled with one branch of the Merrill Lynch (MLLA) Merill Lynch Life Agency and will receive 18 million Dollars. -Here is the Link to the Illinois Deparment of Financial Regulation- Division of Insurance- Stipulation and Consent Order

Merrill Lynch Bank and Trust (MLBT) is the trustee for the IFDA Preneed Trust. Evidently the regulators trusted Merrill Lynch to take the money and settle. There appears not to be enough trust for Merrill Lynch to be  given the $18 million as a  trustee. The regulators in Illinois will disperse the money to funeral directors and their clients.

The State of Illinois has taken over part of the IFDA Funeral preneed fund. This was done by an order by the Division of  Insurance in Illinois. This is clearly over reaching because it had noting to do with any kind of bailout or tax payer fund.

The State of Illinois will control Funeral Directors preneed funds… How can this be? Should the government control your funeral money?

Funeral Industry|Funeral  Blog by Your Funeral Guy


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Friday, May 22nd, 2009
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Hartford Insurance got a bailout from the US Treasury. Did they pass it on to the Funeral Company Everest?

Hartford Insurance got a bailout from the US Treasury. Did they pass it on to the Funeral Company Everest?

Billions in Federal  bailout money was reported to be going  go to Hartford Insurance on Friday May 15th, 2009. On Monday 5/18  Hartford  announced  free  funeral preneed services to companies that hold employee life insurance policies through the Hartford.  The  Funeral Company is Everest.

The cost is $48.00 per person  at their website. The bailout from the 700 Million T.A.R.P at the US Treasury was reported at Daily Finance.

What happened is this: Hartford has teamed up with the Funeral Insurance planner,Everest. This happened just after it was announced they will  received billions in T.A.R.P. Funds from the 700 Billion Dollar US Treasury Bailout.Yahoo.news

“The ‘Life Conversations from The Hartford’ program features Everest Funeral planning, along with will preparation and other services that can save consumers money and stress during one of life’s most difficult moments” Press Relesase -Yahoo.news

Hartford could have not afforded to make this purchase without the Federal Dollars. Again the numbers are quite staggering going from the United States Treasury to Hartford to Everest.

$48 per person is not a lot of money- that is the yearly fee for Everest’s individual funeral services at the  Everest Web Site .

“When fully implemented and extended to employees and their family members, an estimated 20 million Americans will be covered by Life Conversations and Everest services.” Press Release Headline –Yahoo.news

Forty-Eight Dollars  is a lot  of money when 20 Million People are involved.  It is 960 Million Dollars almost 1 Billion Dollars.

It was reported that the total funds received from  the United States Treasury going to the  Hartford was 3.4 Billion. Some of the  funds to go to the purchase of the The Federal Trust Bank in Florida.-tradingmarkets.com

For More information on  Funeral preneed bailouts Check this out.

Funeral Industry |Funeral Blog by Your Funeral Guy


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Monday, May 18th, 2009
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