CONTACT US 1800 268 2466 | [email protected]


 


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See also: OFSA Webinar (04/08/2020): How to Navigate Preneed During COVID-19 Reference Sheet (PDF)

Options for Deferring or Stopping Payments

Trust Contracts

All requests for payment deferrals can be made by completing this simple form (click here to download) which can then be saved and emailed to [email protected].

Options for your client include:

  • Request that payments be stopped for a set period of time.
  • Request that the monthly payment amount be decreased for a period of time – for example, pay half of the scheduled amount for 3 or 6 months. 

 

Insurance Contracts

All requests for payment deferrals should be made by phone to 1-888-428-4444. At this time, each multi-pay certificate would need to be assessed individually. For insurance plans, any plan that is past-due by more than 90 days will either be placed into Reduced Paid Up status or cancelled if the account value is less than $500.

Options for your client include:

  • Change the goods & services in order to lower the Face Value of the Insurance Certificate and lower their premiums. The required downgrade form is completed in our office and provided to you for signature by the client and your establishment.
  • Request the certificate be placed into Reduced Paid Up status. This is the best option for a client who cannot afford to continue with their scheduled payments. This leaves a portion of the premiums paid in a certificate that can be applied to future funeral expenses. 

 

Cancellation Options

It is very important for you to directly ask the client what is prompting them to make this request:

  • If this is a fear-based decision then there is great opportunity to educate them about why they made an excellent decision in the first place.
  • Ensure they are clear on what they have actually put in place i.e. what goods & services they have purchased and how they funded it trust/insurance
  • Leave everything in place for 30 days until they have had time to digest the information you have reviewed with them to ensure their wishes are still the same.
  • It is imperative that the client understands their investment is SAFE.
  • As we continue to watch interest rates drop we know that the value of our personal investments is declining. We do expect things to reverse once we are through this particular crisis.
  • The wonderful part about a fully paid funeral contract is that the products and services are price protected/sheltered regardless of what decline we see in the market.
  • If something was to happen to them the funeral home would provide everything as designated regardless of how much they receive when they claim the certificate/policy.
  • Reiterate this prepaid funeral helps to alleviate both the emotional and financial burden on their family.
  • During this unprecedented time where families are having to arrange “from a distance” and make decisions faster than ever their prearrangement is even more valuable.

Once you understand your client's reason for cancellation, present their options.

Single Pay Option #1: Reduction of Contract Value

  • Trust: We would refund the difference between what they paid and their new, lowered value. Note that a T5 would be issued for any interest earned over $50.
  • Insurance: This option may or may not be beneficial to your client, depending on the rules regarding the specific product they are using. Call GFD or your insurance provider for further details before presenting this option to the family.

 

Single Pay Option #2: Full Cancellation of Contract

  • Trust: Full refund of funds, less the cancellation fee if taken by the bereavement establishment. Note that a T5 would be issued for any interest earned over $50.
  • Insurance: Called a Cash Surrender Value, this may be less than the amount paid for the funeral depending on the rules regarding the specific product they are using. Call GFD or your insurance provider for further details before presenting this option to the family

 

Time Pay Option #1: Reduction of Contract Value

  • Trust: We would refund the difference between what they paid and their new, lowered value. Note that a T5 would be issued for any interest earned over $50.
  • Insurance: This option may or may not be beneficial to your client, depending on the rules regarding the specific product they are using. Call GFD or your insurance provider for further details before presenting this option to the family.

 

Time Pay Option #2: Full Cancellation of Contract

  • Trust: Full refund of funds, less the cancellation fee if taken by the bereavement establishment. Note that a T5 would be issued for any interest earned over $50.
  • Insurance: Called a Cash Surrender Value, this may be less than the amount paid for the funeral depending on the rules regarding the specific product they are using. Call GFD or your insurance provider for further details before presenting this option to the family