The funeral profession has changed a lot over the years. But for all the changes you’ve navigated, one thing remains the same – your funeral home must remain cash flow positive.
That’s easier said than done, though, as your business faces many financial challenges, including time-consuming and unfunded insurance assignments.
Here are a few common struggles that most funeral professionals experience when processing their insurance assignments:
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Long hold times with insurance companies – sometimes hours – just to verify a policy.
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Delays in confirming if a family can use life insurance benefits to cover their funeral costs.
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Additional stress that comes from insurance companies failing to process a claim.
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Unexpected claim denials, leaving you with no payment for you and your staff’s services.
These challenges can feel overwhelming. But when done correctly, insurance assignments can be a valuable tool for you, your staff, your business, and the families you serve.
Here are 5 ways to improve your funeral home’s cash flow and ensure families receive the care they need without financial strain.
Tip #1: Introduce insurance assignments early to families
Families walking into an arrangement conference often carry the weight of grief and financial uncertainty. Their first questions might be, “How much will this cost?” and “How will I pay for it?”
Introducing life insurance assignments early in the funeral planning process can help families feel more secure. Knowing their loved one’s policy can cover the costs helps grieving families focus on honoring their loved one’s memory rather than stressing over finances.
Providing this option from the beginning can foster trust and relieve some of the family’s burden.
Tip #2: Save time with assignment processing experts
Handling insurance assignments in-house can be time-consuming and add unnecessary stress to your already busy team. The last thing you and your staff need is a complex insurance assignment process that wastes your precious time and can take 6-8 weeks to complete.
But an insurance assignment processing company can handle all of that for you. By letting a team of insurance experts help, you’ll feel the weight of assignments lifted off your shoulders and ensure a family’s funeral funds are available within days, not weeks or months.
Leave your insurance assignments to the experts so you can stay focused on being an expert in caring for families during their time of need.
Tip #3: Limit your funeral home’s financial risks
Accepting life insurance assignments can be risky if the claim is denied, leaving you to absorb the loss. Or worse, you could be forced to ask grieving families for additional payment – sometimes after the funeral.
A trusted insurance assignment processing company eliminates this risk by guaranteeing its policy verification process. The right partner will offer you a 100% risk-free advance on the funds. That way, you’ll know that when you accept an assignment from a family, it won’t come back to hurt your cash flow.
But remember, not all funding companies offer this protection, so it’s essential to partner with one that provides a risk-free verification process, stands by its guarantee, and ensures you are never left unpaid.
After all, peace of mind for your business and the families you serve is priceless.
Tip #4: Identify policy issues with expert help
Life insurance policies often have large or small red flags that can cause unexpected delays in funding. Some policies may have outstanding loans or liens that reduce the payout. Some may even be unassignable or have outdated beneficiary information that can cause significant complications for your funeral home and families.
If you’re not an insurance assignment expert, you shouldn’t have to navigate these red flags alone. Partnering with an expert ensures that if a policy has a problem, it’s caught early. And when these red flags are identified early in the process, your funeral home will avoid unnecessary stress and financial uncertainty.
Tip #5: Use your insurance assignments for growth
Did you know you can use part of a family’s insurance policy to help them preplan their funeral?
Many funeral homes miss opportunities to grow their preneed volume through life insurance assignments. When a family doesn’t use the full amount of their policy on the at-need funeral, it opens the door to a conversation you can have with them explaining how the remaining policy funds can be used on their own prearrangements.
And if the family has experienced the stress that goes into planning a funeral that hasn’t been preplanned, they’ll likely be ready to put their own wishes on paper!
When families have money in hand, they are often more willing to plan ahead, ensuring their loved ones are cared for in the future. Offering this service not only supports families today but also helps secure the long-term success of your business with more preneed contacts on your books.
Bonus: Provide insurance advances to all families
Whether a family plans to pay with cash, a credit card, a preneed policy, or another option, offering an insurance advance can still make a difference.
Immediate access to funds can help a family cover unexpected expenses, reduce financial stress, and have a smoother experience. Simply making this option available shows families that you are there to support them in every way possible.
Make a difference in your funeral home and families with the right partner
Selecting the right insurance assignment processing company is crucial for financial stability, peace of mind, and service. Claimcheck can help you with all three of these areas and more!
When you choose Claimcheck, you’ll discover a partnership that keeps your cash flow moving in the right direction and helps you focus on providing compassionate care to families.
Click here to learn more about Claimcheck, or fill out the form below to get started!