Consumer Reports Critical of Funerals and Advance Planning Our Response Consumer Reports magazine, in their May 2001issue, reported on an investigation into funeral arranging and prepaid funerals. Most of the information was distressing and portrays many of those who pay for funerals in advance as victims. While the problems raised are mostly with the three large corporate owners of funeral homes, the criticisms of advance planning and advance funding have an effect on all funeral homes – including the honest independents who are providing excellent service and value for people wishing to plan and fund in advance. To Consumer Reports’ credit, they did point out that New Jersey and New York have consumer friendly laws. However, one had to read through the whole article to find this, close to the end. branddörr . diabetes type 2Consumer Reports stated that "you’ll probably pay top dollar for a pre-paid funeral" and that "There are much better ways to plan in advance." They reported that three big chains of funeral homes account for one quarter of all the funeral homes in this country and that a portion of the funds paid for funerals in advance are being used to pay down current debts. In order to increase sales of funerals in advance, funeral corporations have been aggressively marketing to increase sales. They continue: "The pitch is simple: Plan ahead and save your family the stress of making arrangements at the worst time; lock in your price now to avoid much higher costs later." Rising costs, from Consumers point of view are not raising as fast as it has been suggested. We agree with that contention, nonetheless, prices will be rising and future increases need to be considered, just as we recognize that the cost of living will be much higher when we retire. On advance planning: Planning in advance is not entirely a financial matter. It is not a matter in which anyone should be encouraged to do on their own either – it should be a family matter. The first step in planning for ones future funeral plans is for a family to talk. Ultimately, we believe that advance planning will be treated much in the same way people treat preparing for retirement. Making an advance plan can start with the decision of the final disposition: burial, entombment or cremation. Assembling ones personal information, vital statistics and important papers in advance is much easier to do since time is not of the essence! Putting everything to paper and reviewing it with family members is not necessarily an enjoyable experience, though it will be of great benefit to the survivors later on. Whenever a person dies and a family makes arrangements at the time of death, decisions are made by a consensus of the close survivors. Some of the anxieties of making arrangements "at need" stem from the survivors trying to guess what the decedent would have wanted. Important information and papers may need to be found and often this creates more stress on top of one’s grief due to the loss of their loved one. To our credit, most funeral directors do an exemplary job of helping families get through these tough times. Regardless of whether one has planned for the future or not, it is our aim to do everything possible to help survivors deal with their loss, have a meaningful funeral or experience and adjust to living without the decedent. So why plan ahead? And, if you plan ahead, why involve a funeral home in all of this? More than ever, there are many options available and many ways to have a funeral. Who better is there to explain all of the options than a funeral director. Often when talking with people about funerals, they are not aware of what can and can not be done. Some people have expressed an interest in cremation but did not realize that they could have a viewing and funeral service prior to the cremation. Some veterans are not aware of the existence of cemeteries where they can be buried, free of charge. Saving Money: The savings by funding in advance are to be realized at the time of the funeral. There are no discounts on current prices, hence if one wants a "top dollar" funeral they will be paying "top dollar." There are many ways of funding a funeral in advance. Not everything is guaranteed, and exactly what is guaranteed may very well differ from place to place. It is important that every detail be thoroughly explained and understood. Guaranties are what provide for the best value and the most in future savings. Services and merchandise are what are usually guaranteed while cash disbursements are not. Cash disbursements include the monies being paid for cemetery, clergy and other expenses, which are not controlled by the funeral home. The basic premise of paying in advance is that costs increase over time, and by putting the money aside, it will grow to cover the increased cost. Some recommend that people do this on their own because they believe that they can get a better return on their money than with a trust or insurance policy. There are two main points to make about this contention: 1; Often a number of people who have every intention of putting money aside never get around to doing it. 2; If one invests in stocks or mutual funds and has to cash in while the market is low, they will be forced to take a loss. A great advantage of funding through a funeral home comes in the way of guarantees. If the funeral home guarantees that the survivors will not have to pay any more for the cost of services and merchandise, there can be considerable savings. Here are some actual examples of how families benefited financially by funding in advance: In mid 2000, a family arranged and funded a funeral in advance with an (Forethought®) insurance policy through the funeral home. They had expected their mother to live a number of years more, but she died less than one year later. During that time the cost of the funeral did grow by 5% and they received money back because the value of the policy had increased more than the cost of the funeral.A husband and wife arranged and funded their funerals in advance with an (Forethought ®) insurance policy on each of them back in 1998. The wife died earlier this year. The cost of her funeral had risen on an average of 6% a year and her husband received money back as the policy value was more than the new funeral cost.Trusts and Insurance policies do not always grow faster than the costs – not everyone gets money back: In the Fall of 1997 a funeral for a widow was planned and funded through NJ Choices Trust. Three years later the funeral cost, which had risen at 6% per year was $42 more than the growth of the trust, which had grown by approximately $1240. Tom Sheenan accepted the payment from the trust fund as payment in full! A woman who had planned and funded her funeral in 1996 and died earlier this year chose Forethought ® Insurance. The cost of her funeral had only risen an average of 4% a year, yet the value of her policy did not meet the current cost. The cost of that funeral had risen $1,720, which was $485 more than the value of her policy. Since the Sheenan Funeral Home had guaranteed the funeral, her survivors did not have to pay an extra cent.It is paramount that one knows what one is getting when they pay for anything in advance. Ask about what is guaranteed and what are the limitations. At Sheenan Funeral Home nothing is hidden. Funerals are funded either through a trust operated by the New Jersey Prepaid Trust Fund or with Forethought ® Whole Life Insurance. 100% of the money paid goes into these funding vehicles. They are completely portable and can be taken to any funeral home a person chooses. Interest that grows in the trust stays in the account and the funeral home has no claim or use of this interest prior to the funeral. In the event of a refund on a trust, the family will receive back all of their money plus all the interest. The NJ State Banking and Insurance Commission regulates all insurance policies.New Jersey has, on many accounts, some of the toughest laws in the country. Our state could serve as a good model for the rest of the country. Consumer Reports seems to feel that it is unlikely that Congress will be passing any pre-need laws. Whether or not they do, or whether individual states will do much will not help people considering advance planning today. Before signing any agreements, it is important that the buyer know where the money will be going, what is guaranteed and what is not, know how interest is taken care of and understand what happens at the time of need. From the accounts in Consumer’s article, people in some other states may be better off not funding in advance or moving to New Jersey! Advance planning:
What is most important, when dealing with what can be a difficult event, is to beand discuss arrangements and wishes with your family now. Be sure that there are no ill assumptions or ideas that have not gone unexplored. Discussing these matters in advance provides that both the needs of the survivors and of the recipient can be met. v
At the Sheenan Funeral Home, we realize the necessity of letting our community know who we are and of the many ways we can help them. By offering informative seminars and having a comprehensive advance-planning program we can better serve everyone’s interests. We help people to be more informed and help them to be better prepared for the future. Through our contact with people before a death has occurred, we are able to help people prepare arrangements in advance, reliving the emotional burden survivors may encounter when faced with making difficult decisions. And, we also offer ways of controlling the rise in future costs. While some funeral homes are being sold to corporations, Sheenan Funeral Home remains under family control. Owned and operated by the Sheenan family since 1933, our aim is to do the best we can for each family who calls on us. We care for our families and stay with them Plus, our commitment doesn’t end after the funeral: We care for our families and stay with them as long as they need us! Everyone who works at the Sheenan Funeral Home is committed to bestowing the kind of worry-free "Sensitive Service" families have come to both expect and deserve. Focusing on each families needs: We, like other funeral homes, offer a wide range of services and products. What sets us apart is how we place the family and their desires above everything else. No two funerals are exactly the same because of the fact that very individual is different. Before working out the specific arrangements with a family we first listen to them. What sets us apart is how we place the family and their desires above everything else We learn of that they have been through and what their needs are – then we explain what they can do, and we work, with them to build a meaningful memorialization around their needs. Building relationships: It’s all about people: Though we pride ourselves on our ability of doing an exceptional job with every aspect of funeral service, if we had to sum up what we are all about we would have to answer: It’s all about people! v
In a 1999 survey by the American Association of Retired Persons, one in five Americans age 50 and older have experienced funeral arranging and/or advance planning. Twenty-nine percent of those arranging for a funeral found some details to have been already planned and paid for. The AARP has also stated that more and more Americans are entering into "preneed agreements" to purchase funeral goods and services before death. In a 1998 survey, AARP found thirty-two percent of those surveyed to have paid in advance for some or all of their funeral and/or burial expenses. Planning in advance is much more than a money issue. Planning starts off with information gathering and organizing, which relieves survivors the task of searching for birth certificates, military papers, social security numbers, cemetery property deeds and more. The next step is to review the choices and options for services and put the selections down on paper. A casket and other merchandise can be selected, or survivors can be given the remaining choices to be made when the need arises. Funding for a funeral in advance is the last step, and while optional, for many people this is a wise step to take. If one is unsure whether they want to fund a funeral in advance, they can and should go ahead to make plans without funding. People who make advance plans have many different reasons. Some people after retirement make their arrangements so they have nothing else to worry about and to relieve their children from the frustration of trying to figure out what their true wishes were. Others with little or no family around make their own arrangements to make sure their wishes are known and carried out. People who will be in need of receiving Medicaid must "spend down" their assets prior to becoming eligible for assistance and are encouraged to plan for and pay in advance for their funeral. Ask anyone who has made arrangements in advance and you will hear for yourself of all the advantages. In a recent survey mailed in following a funeral, a survivor (who also has made advance plans) stated: "Prepaid funerals are the way to go – less stress, less hassle, more time to deal with family and not be pulled in other directions." In 1998, a person wrote Dear Abby in praise of advance planning: "Years ago, both my parents had the foresight to preplan and pay all of their funeral arrangements. All Dad had to do for Mother’s service was order the flowers; then we were able to share condolences with more than 500 guests. It made her funeral a beautiful time of reuniting old friends and family." People funding a funeral in advance can be able to pay at today’s costs for future service. This is a unique situation one can take advantage of. Where else can one get something in the future based on current costs? This enables people to have control over how and when they will make payments unlike what happens after a sudden death occurs, with no plans in place. One can chose to make a single payment, pay for part now and part later, or over time with a payment plan for three, five or ten years depending on the method of funding they chose! The most popular funding option when planning with Sheenan Funeral Home is with a Forethought ® life insurance policy. This is a special insurance policy made to have a rising death benefit which rises with the cost of living and inflation. When using Forethought® for the funding vehicle, Tom Sheenan guarantees that a family will not have to pay an extra dime for the services that were selected in advance. The casket cost (for caskets selected at Sheenan Funeral Home) plus other costs are guaranteed as well. And, in most cases the increased death benefit adequately covers the other rising costs not under funeral home control such as cemetery charges and other charges by third parties. Tom Sheenan carefully investigated Forethought®before placing his full trust in them. In the State of New Jersey, advance funding is very safe. It is important to know that the funeral home does not deposit and keep any money. 100% of all monies paid in advance to Sheenan Funeral Home go either into a trust fund or a Forethought® life insurance policy. There are other policies one may hear about, but Forethought® is the one which stands out above the rest. Specially since the Sheenan reputation is centered around "trust," Tom Sheenan carefully investigated Forethought® before placing his full trust in them. All arrangements are transportable. If someone moves, they can take their advance funding with them. The State Department of Banking and Insurance and Division of Consumer Affairs maintain well defined guidelines and regulations protecting all who make advance plans and guarantees that families will be getting all the benefits that are promised. Funding in advance is not meant to replace life insurance. Life insurance is important to have in covering all the other expenses a family may incur preceding a death. This includes hospitalization, home care, loss of income, unpaid bills and other incidental expenses. What may have been a more than adequate policy for ones needs twenty years ago may no longer be enough. On a regular basis one should review all of their plans and policies to make sure they are well covered. For generations, people have been acquiring cemetery property well in advance of needing it. Now people can complete the plan. Advance planning should be a regular part of retirement planning -- It just makes sense! v
As a baby we depended on everyone for everything – from being fed to being moved from place to place. We developed into childhood and things changed, but we still depended on our parents for the food we eat, the clothes we wore and the transportation we needed. Eventually we began to take more and more control. Finally we were responsible for our care and welfare the choices we made were the results we lived with. The years grew and our control gradually began to ebb. Now we begin to look to our family, and to the government: Social Security, Medicare, Medicaid. At retirement age we are old enough to receive the "rewards" of the years we had withholdings put aside for this time. But -- it comes at a price. We are told what we have to do to collect that which we have paid for. So how to we maintain the control we so need? The answer …..knowledge ….. having information……. being in the know. However you want to say it the simple fact is "If you don’t know -- you don’t control!" At age 65 one may sign up for Medicare Part A. Those who are not under a work related Health Insurance Plan may apply for Medicare Part B. Then there is a thing called Medigap to cover the expense gap between what the state pays and it does not. Then there is a Managed Care Plan. It all sounds very confusing. Just remember that the way to remain in control is to be proactive. Seek information from a number of sources. Ask friends who have already learned how to deal with the complicated system which is in place. Following are a few definitions and contact information to help send you in the right direction.: Original Medicare: sometimes called Traditional or Fee-for-Service. You can use almost any Doctor, Hospital or other health care provider in the country and they are paid for each service you receive. There will be some out-of-pocket cost for your care. Those enrolling in the Medicare program for the first time, will automatically receive this.Part A: Is for hospital care and is premium free for most people with a deductible of $768 each benefit period. Part B: Covers doctors services and has a premium which is automatically deducted from your Social Security. Medigap: Is not a government entitlement. Medigap is an insurance policy which is sold by private insurance companies to fill some of the "gaps" -- costs not paid by Original Medicare such as the 20% co-payment. Medicare Managed Care Options : This could be an HMO (Health Maintenance Organization). The government pays a fixed amount of money to your health plan to provide all of your care. As with all HMO’s you generally must receive your care from the providers named by the plan. Resources:Medicare Hotline US Government Medicare Web-site: http://www.medicare.gov Medicare Helpful Contacts: Medigap Comparisons: http://www.medicare.gov/mgcompare/home.asp Medicare Rights Center: http://www.medicarerights.org (The Medicare Rights Center is a free counseling service to Medicare Beneficiaries) v
Pets not always considered with Advanced Plans The origins of this article began when a child called the funeral home and said that his dog died. Charles Bechtold, who took the call, is a pet owner who has experience in dealing with the death of pets took the call seriously. He explained that the funeral home did not care for pets and started to suggest where this person may look for help – then the punch-line was given and the call ended. The thoughts of pets and dealing with death did not end. It is estimated that Americans spend over $21 billion a year on their pets. Some pet owners carry health insurance on their pets, and will go to great lengths in providing the very best for them. Nowadays, extensive surgical procedures, cancer treatment and chemotherapy are performed daily on many highly valued pets. There are a number of ways with dealing with the death of a pet. Most veterinarians offer some services and can advise people on ways in caring for the death of a pet. Resources are also found in the yellow pages and Internet. In dealing with the death of a pet, owners are capable of dealing with the loss and of getting help. The inverse cannot be said about the pet who has suffered a loss of its owner. While this may sound ridiculous, it can be a problem for the survivors of a pet owner who has died. While having a agreement with someone (and alternate) to care for the pet(s), it is important that ones wishes be known to all survivors of a pet owner. A last will and testament is a good place, details, however, it will not be read immediately and there is the risk that the pet will be treated in a way contrary to the decedent’s wishes. A pet owner may bequeath money towards the caring of the pet. While one cannot name their pet as a beneficiary, they can designate someone as beneficiary with the understanding that the money be used for the care of the pet. If no one can care for the pet, one needs to find a facility to care for the pet or find it another home. There are many ways in which to handle the details. Some options include establishing a pet trust and appointing a trustee to manage how monies are spent. Also it needs to be specified as to what should be done with any monies remaining after the pet dies. No matter what one’s feelings are when it comes to caring for pets, it makes sense for every pet owner to prepare in advance for the care of their pet in the case of their deathv
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Sheenan Funeral Home
