While many businesses can eagerly chase their customers for payment, it is difficult and morally problematic for the funeral director to demand payment within a short period after an individual’s death. Professional funeral funding companies can alleviate this problem and improve the funeral home’s cash flow.
Appreciating the Importance of Cash Flow
Every business understands the need for customers to pay their bills at the earliest possible moment.
For funeral directors, when there is insufficient money available to pay the funeral invoice, families often must wait until probate has been completed so that the life insurance company meet the claim.
By assigning a life insurance policy, the funeral funding is provided virtually immediately, relieving the worries for the family and the funeral director’s cash flow.
Where there are any delays in the issuing of a death certificate because a medical examiner or police reports involve investigations, the insurance policy will not normally be able to pay directly to the probate or estate of the family involved until inquiries are complete.
For a funeral director, they must pay their bills on time including those of their employees and any services they have contracted to provide for the funeral. Companies are not going to wait to be paid by the funeral director.
When funeral funding is arranged through the assignment of insurance policy, accurate funds can be sent to the funeral director within one or two days of the funeral being completed.
Any excess funding can be returned to the family or enter the probate process.
Where this method of assigning a life insurance policy is completed efficiently, the funeral director’s company and the family will not have to be concerned about meeting immediate expenses.
