Funeral Funding of Michigan (FFoM) would like to thank all of our customers for continued growth and success. Because of your loyalty and referrals, we continue to be the fastest growing insurance reassignment company in America.
Remember: Your referrals also help you because you receive no-fee fundings for each referral that does reassignments with us!
FFoM will post information about your Cemetery or Funeral Home, or other funeral-related business including your website, on our Resources page for free. Simply email mark.scott@funeralfunders.com with your information or questions.
Recently, United Insurance Co. of America, Union National Life Insurance Co. and The Reliable Life Insurance Co. implemented new requirements for all claims. These requirements are outlined below:
For All Claims
Insured - claimant statement and death certificate
Pre-deceased beneficiary – death certificate (may be a photocopy)
Total liability from $7,501 to $15,499 for all policies
Insured – claimant statement and certified death certificate
Pre-deceased beneficiary – death certificate or copy
Total liability $15,500 and over for all policies
Insured – claimant statement and certified death certificate
Pre-deceased beneficiary – certified death certificate - no copies!
The above is in addition to the normal forms associated with the underwriters' claims. Please ensure you are providing these to us when processing claims.
Due to increased privacy and security standards being adopted by insurance companies, the following documentation is required for all fundings regardless of the assignment amount:
1. Copy of Beneficiary Identification (clear, legible copy of driver’s license or state ID, etc.);
2. Funeral Program or Obituary for the Deceased;
3. Copy of the Funeral Bill.
Additionally, we must receive your original documentation within 14 days of funding, even if you have not yet received the certified death certificate. Paperwork not received within 14 days may delay future fundings.
Technically, an insurance assignment isn't considered "paid" until the underwriting insurance company reimburses the funding company. Providing your customers with a "Paid in Full" receipt immediately following a funding can be an costly practice for your business.
For example:
Once we have funded your assignment and have received your original paperwork, we forward those documents to the insurance company for processing. Upon receipt, the underwriters Claims Examiners will compare the data they have in their computer system with the original documents contained within the deceased policyholder's file. Under most circumstances, the information matches and the claim is paid out.
However, if the information conflicts, additional paperwork may be required by the family or your business (or both) before the claim can be paid. In rare circumstances, the beneficiary may be paid directly, the payable amount may be reduced, or the claim may be denied altogether. If this happens, you need recourse to recover the assigned funds. In the unfortunate event that you are forced to take legal action for reimbursement, your chances of success can be severely inhibited if you have provided the family with a Paid in Full receipt.
You can take some simple steps that can help to ensure your company has greater success under these circumstances:
Ensure your Cemetery or Funeral Home Assignment form has legal verbiage protecting you in the event the claim is reduced or denied, or if the beneficiary receives the assigned amount instead of the Funding Company.
Do not provide a Paid in Full receipt to the family until you have been notified by Funeral Funding that the insurance company paid the assigned amount to us in full.
Be cautious of any beneficiary who may be moving out of the area, hospitalized, incarcerated, etc., as this may delay your ability to obtain any additional documentation the insurance company might require after the funding has been processed.
Note: If you are using the generic Assignment of Proceeds form from our website, we recommend that you add legal verbiage pertinent to your state before utilizing this form.
Funeral Funding of Michigan (FFoM) strives to ensure that you are notified once we receive payment from the insurance company. As always, you can call us and ask our representatives if payment has been received.
“You can transform your life and business in just minutes a day.” If that statement is true, then read on.
Your time and your business are valuable, and knowing how to be profitable with both can be unclear at times. Your reasons for using a funding (or “factoring”) company, however, should be very obvious. Utilizing a funding company increases your funds availability, frees your funeral home or cemetery from having to spend additional time verifying and processing policy information, and allows for increased profits through add-on sales.
One misconception is that fees charged by funding companies negatively affect the “bottom line”, reducing the profit of the funeral home or cemetery because the business is charged a funding fee. The real bottom line is that your business should not have to pay the funding fee. It is an accepted practice within the industry that our fee can be included on your bill and part of the assignment. Few families will rebuke paying a fair fee for the ability to pay for these expenses up front.
Another popular misunderstanding: “Only struggling businesses utilize a funding company”. In all reality, the use of a funding company will actually help businesses become more profitable and stable. Our service provides the family with the immediate financial means to be able to purchase add-on (and often times, higher-profit) items that they otherwise may not be able to afford. This gives the family comfort knowing they were able to do more for their lost beloved.
Finally, some funeral homes and cemeteries actually discourage and even refuse handling insurance assignments! They may be concerned that more time would be required from their staff or they may be unwilling to invite the potential risk. In any case, the use of a funding company actually reduces both concerns. It is estimated that less than one-half of one percent (one in two hundred) of assignments processed through a funding company will be reduced or denied. This number is considerably higher for assignments processed without a factoring company. In simple terms, this means risking the loss of business of 200 families for the potential risk of one. With today's economy, even financially established families may be hard-pressed to come up with several thousand dollars on short notice. It is much easier for the family to utilize the insurance proceeds and, if the funeral or cemetery business refuses assignments, the vast majority of businesses would be more than willing to accept new customers.
Utilizing a funding company ensures consistent cash flow, further validating that “Cash Now is better than Cash Later.” Just a few of the benefits for the funeral home or cemetery are:
1. Additional selling point for your business, e.g., “Jones Funeral Home is now accepting Insurance Assignments”!
2. Receive your assignment amount within 24-48 hours of verification.
3. Increase add-on sales by providing additional, up-front financial resources for the family.
4. No additional cost to the cemetery or funeral home.
5. Less risk for your business than in-house payment plans.
6. Lower cost to your customers versus paying by credit card.
So now you are probably thinking, “It makes good business sense for my funeral home to utilize a funding company for insurance assignments – are there any risks?” The simple answer is “Yes”.
Funding companies rightfully expect reimbursement from the insurance company within a pre-determined time, usually from 30 to 90 days, depending on which funding company you use. The insurance underwriter may contact the funding company after the claim has been filed to alert them of additional documents that may be required from either the beneficiary(ies) or from you in order to complete the claim process. As long as the funeral home or cemetery is working with the beneficiary and the funding company to provide these documents in a timely manner, the 30 to 90 days can often be extended.
Additionally, some insurance companies may inadvertently pay the claim directly to the funeral home/cemetery or to the beneficiary(ies), even when a reassignment has been received by the underwriter from Funeral Funding of Michigan. In these rare cases, the funeral home is liable for reimbursing the funding company for the assignment amount. Keep in mind that the Funeral Home or Cemetery Assignment is an agreement between your business and the beneficiary(ies). You should consider including legal verbiage in your assignment to protect your business and provide yourself with a means of recourse for instances where the beneficiary gets paid instead of the funding company.
This works the same way with the funding company and the funeral home. If the funding company has not been paid in due course for any reason (i.e., the beneficiary or funeral home was paid instead, or required documentation has not been submitted promptly), then the funding company can legally pursue the funeral home or cemetery for the funded amount, which can include legal fees, court costs, etc. Also, most funding companies will not pursue the beneficiary as the agreement is between the funder and the funeral home. Furthermore, if the insurance company denies the claim for any reason, the funeral home is then liable to the funding company for the assignment amount.
Thankfully, these types of problems are few and far between, but chances are you will run into a similar incidence if you haven’t already. Frequent communication with your funding company is essential. If the funder attempts to contact you concerning any of these issues and they aren’t getting a return call, or if paperwork isn’t being provided in a timely manner, it can put pressure on what should be a “win – win” relationship for both businesses.
So, considering that all funding companies work under the same basic principals outlined above, what makes Funeral Funding of Michigan better than the others?
1. We are the best. period;
2. We do not charge a New Account or Startup fee;
3. You are not obligated to meet a minimum number of fundings – you can do as many or as few as you need;
4. FFoM provides the full 90 days before expecting payment;
5. Ours is the best-trained, most professional and efficient staff in the industry.
Call us at (800) 544-4145 to find out more about how Funeral Funding of Michigan can assist you in helping your business and your customers.
© 2008, Funeral Funding of Michigan, Inc.