Consumer Tips on Funerals

One of the largest expenses many consumers will face is arranging for a funeral. Extras such as flowers, obituary notices, cards and limousines can add to the cost. At such a highly emotional time, many people are easily swayed to believe that their decisions reflect how they feel about the deceased and wind up spending more than may be necessary.

Most funeral providers are professionals who work to serve their clients' needs and best interests. Unfortunately, some do not and may take advantage of clients by insisting on unnecessary services and overcharging consumers. The Funeral Rule is a federal rule that regulates the actions of funeral directors, homes and services.

Many funeral providers offer a variety of package plans that include products and services that are most commonly sold. Keep in mind, you are not obligated to buy a package. You have the right to buy the individual products and services you prefer. The following are outlined by the Funeral Rule:

• The funeral provider must state this "Rule" in writing on the general price list.
• You have the right to choose the funeral goods and services you want (with some exceptions).
• If state or local law requires you to buy any particular item, the funeral provider must disclose it on the price list, with a reference to the specific law.
• The funeral provider may not refuse, or charge a fee, to handle a casket that you bought elsewhere.
• A funeral provider who offers cremations must make alternative urns available.
• When prepaying for funeral services, do not agree to give the check from the life insurance company directly to the funeral home. You are paying for specific goods and services, and signing over the life insurance check might result in a significant overpayment for services rendered.

Planning ahead is the best way to make informed decisions about funeral arrangements. An advance plan also spares your family from having to make choices in the middle of grief and under time constraints. Every family is different, and funeral arrangements are influenced by religious and cultural traditions, budgets and personal preferences.

You are not legally required to use a funeral home to plan and conduct a funeral, but most people find that the services of a professional funeral home make the process easier. Comparison shopping, either in person or by phone, can save you money and is much easier when done in advance. Visit https://www.funerals.org/ to learn more about how to select a funeral home and research its history. Many funeral homes will also send you a price list by mail, but this is not required by law.

If you have a problem concerning funeral matters, it is best to try to resolve it first with the funeral home director. If you are dissatisfied, the Funeral Consumers Alliance (https://www.funerals.org/) may be able to advise you on how best to resolve your issue. You can also contact your state or local consumer protection agency (website at end) or the Funeral Service Consumer Assistance Program at 1-800-662-7666. Most states have a licensing board that regulates the funeral industry. You can contact the board in your state for information or help.

Prepaying

Millions of Americans have entered into contracts to prearrange their funerals and prepay some or all of the expenses involved. Various states have laws to help ensure that these advance payments are available to pay for the funeral products and services when they are needed; however, protections vary widely from state to state. Some state laws require the funeral home or cemetery to place a percentage of the prepayment in a state-regulated trust or to purchase a life insurance policy with the death benefits assigned to the funeral home or cemetery.

Will and Funeral Scams

Be aware of these common signs of will and funeral scams:

• You are told that you must buy all services and burial materials as part of a package.
• You agree to prepay for funeral and burial services, but the company that you pay to handle it uses your money for other purposes instead.
• Aggressive sales tactics are used to get you to prepay for your burial, sell you trusts or write your will.

Take steps to protect yourself:

• Research and interview several service providers.
• Get price lists, so that you can make comparisons.
• Read the contract before you sign, and get all promises in writing. Don't leave blank spaces.

For more information or to file a complaint, contact the Federal Trade Commission (https://www.ftc.gov/). Another option is to contact your state consumer protection office (https://www.usa.gov/state-consumer).