By Nadene Smith, Director of Business Services
Have you ever thought about the devastating effects bad assignments can have on funeral homes? One scenario in particular paints the picture:
I recently got a phone call from a funeral home that was stressed, confused, and desperately needed help. The funeral home followed all the correct protocols and looked for red flags that might have been associated with the policy. The initial verification phone call with the insurance companies went smoothly, and the funeral home was told that funding would happen. The funeral director went to share the good news with the family, and they proceeded to plan a beautiful service honoring their loved one.
However, weeks after the ceremony, the insurance company returned and said, “Sorry, we won’t be able to fund this policy.”
So, the funeral home was tasked with reaching out to the family and delivering the news that they owed thousands of dollars for the funeral service. Consequently, the family stopped returning calls and refused to pay, leaving the funeral home on the hook for the bill.
The funeral home lost $20,000 on one assignment.
As we spoke to the funeral home owners, they were certain they were done with taking insurance policies as payment – and who could blame them?
Your funeral home can’t afford the fallout of not being paid for your time and services. You need a way to protect your business, staff, and families from unfunded insurance policies so you can focus on planning a meaningful funeral.
To do all that and more, you must partner with the proper insurance assignment processing company to take on the risks and headaches.
Here are 3 key benefits of using an insurance assignment company for your funeral home.
1. Less stress about red flags
If all life insurance assignments were straightforward, processing could be a task for someone on your staff. Unfortunately, too many times, policies come with hidden red flags. These particular policies put you at risk of not getting funded.
If you’re not an insurance expert, you might not be able to catch all of the different red flags within an insurance policy. Plus, your primary focus should not be on policies. It would be more beneficial for you to spend your time and energy serving families. Let the experts analyze and verify each policy for you (100% risk-free!)
2. Reduced risks to your cash flow
As shown in the example above, your funeral home’s cash flow can take a heavy hit when policies are not funded and families refuse to pay. It is your responsibility to ensure your funeral home’s finances are protected and in good shape so your business can be around to serve future generations.
Partnering with an assignment company removes the financial risk from your funeral home. If a funeral funding company decides to take on a policy, and for some reason, the policy does not get funded, the funeral funding company will take the financial hit. By then, your funeral home will have already been funded and your cash flow intact.
Most funding companies charge a small, one-time processing fee, which is a small price to pay for peace of mind from red flags.
3. More trust with families
Your business thrives on building trusting relationships with families. You should never have to worry about the unfortunate circumstance of calling a family weeks after a funeral to ask for money to fund the service that has already occurred.
Families should only experience love and support when working with your staff. You can delegate any insurance assignment processing needs to your funding company.
No more bad assignments
The risks of taking on a bad assignment can impact your business and your relationship with families.
It doesn’t have to be that way!
At Claimcheck, our team of experts work behind the scenes to secure funding for your funeral home. We look for red flags, reduce the risks to your cash flow, and help you build more trust with families.
Want to learn more? Request a demo today!
About the Author: Nadene Smith serves as Director of Business Services for CLAIMCHECK. She has over 10 years of experience in the preneed insurance industry. Having lost her husband, Nadene brings a compassionate perspective to fast funding business, understanding how difficult it can be to work with insurance companies directly to process claims. Nadene is passionate about helping families and funeral homes navigate this difficult process when time is of the essence. To contact Nadene, email her at [email protected].