As we head into the second half of the year, let's pause and take a look at the latest data on preneed contracts and forecast what may lie ahead for the remainder of the year. Thankfully, the data shows that as interest rates and inflation continue to rise, it hasn't deterred consumers from planning ahead.From our own database of contracts written between January 1, 2018 through December 31, 2023, the numbers show a few interesting points:
Continued growth in cremation: Consumers overwhelmingly prefer cremation, and the trend is expected to rise considerably over the next decade, requiring cemeterians and cremation providers to generate incremental sales and lock in future revenue with a robust preneed trust program. Modest increase in contract amounts: As inflation continues its rise, we may see a slight uptick in the average preneed contract amount, which has the potential to push contracts into the $2,500 - $5,000 range, especially as firms add new personalization options. Speaking of personalization: Consumer trends show us there is a significant increased revenue potential on the table for firms that offer personalization options at pre-need. As consumers increasingly prefer off-site, unique services, firms that meet this demand by making the planning process easy for families will come out ahead. Overall, our industry is poised well to navigate inflation, adapt to the increase in cremation rates and meet changing consumer demand with several strategic adjustments. Leaders who act early and move strategically with consumer demand will emerge as winners. Sincerely,  Bill Williams President and CEO, Funeral Services, Inc. |
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Important Changes to Chapter 497 Made by 2024 Florida Legislature The 2024 legislative session has brought significant updates to Florida's deathcare law, Chapter 497, Florida Statutes. These changes impact various aspects of the industry, from Board member appointment to the handling of preneed contracts. Here are the key revisions:
Stay informed and compliant by reading our analysis of the regulatory updates and how the changes impact you here. If you have any questions about these changes, please feel free to reach out to us at 850.765.5214 or at Wendy.Wiener@WRWLegal.com. |
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Markets Rebound in May, Led by Tech Surge U.S. markets rebounded in May, leading the way to a positive third quarter. Following April's 4% decline in equities, May boasted a 5% gain. All major U.S. indexes hit new highs, led by the tech sector's 10.1% jump. Four mega-cap tech stocks contributed half of the S&P 500's year-to-date return. Economic data softened inflation and labor market concerns, though inflation remains high. Corporate earnings also topped expectations and with higher yields, bonds regained portfolio diversification benefits. Looking ahead, monetary policy uncertainty could lead to volatility until the Fed clarifies the path of inflation. Overall, the markets show signs of strength and cautious optimism as we head into the third quarter of the year. |
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Executed contract data uploads directly to FSI's systems, saving you time and money, while ensuring you remain in compliance with the FTC Funeral Rule and Cooling Off Rule requirements. If you are ready to improve your efficiency and take the compliance risk out of your contracts, contact clientservices@fsitrust.com. |
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Here are brief summaries of several recent stories featuring FSI: The Best Success Measures to Track Growth for Your Firm The old saying, If you can't measure it, you can't prove it, is as true today as ever. Firms that are focused on growth have one thing in common: they know how they're measuring success. If you need some guidance on where to start with measuring business growth, read more in our recent column with Memento Mori here. Which Preneed Funding Method is Best: Trust or Insurance? In the battle between trust or insurance, which option is best for your firm's preneed program? There are pros and cons to both, which we explored with Southern Funeral Director. Read more here. How Cremation Facilities Can Jumpstart Preneed Sales As the number of families choosing cremation continues to rise, cemeterians and cremation providers can capitalize on the trend to generate additional sales. How? By implementing a robust preneed trust program. Read more in our recent column with American Cemetery & Cremation here. |
How has working with FSI impacted the operational efficiency of your funeral home? I've worked with FSI for more than 20 years - essentially since I started Veterans Funeral Care. And in that time, they have delivered a turnkey service with a team that feels like family. Most of the team members that I work with day-to-day at FSI have been there for more than 20 years, so they know my business and this industry inside and out. In this business, it's longevity and relationships that matter. By partnering with FSI, I've been able to focus my efforts on the things that help me to grow and market my business, while FSI handles the administration of our trust account and all the reporting and compliance support that goes with it. At the end of the day, I truly believe that working with FSI makes the difference between an average business and a well-above average business. Can you provide a specific example of how FSI has streamlined your recordkeeping and administrative processes? We have weekly staff meetings where we review the deaths that occurred and which ones are pre-arranged. For the pre-arranged individuals, our team is able to quickly reference the status of the contract and the payments, and within two days, we're paid out of the trust. How has having a dedicated trust administrator helped you and your team focus more on core funeral services and client interactions? I approach my business plan with a marketing and PR-first strategy, so anything that keeps me at my desk doing paperwork is time taken from community relationship building. I never worry about our trust administration and the fine details that go along with it because FSI has always managed that side of the business for us so well. How has FSI's expertise helped mitigate potential risks and liabilities associated with preneed trust management? We benefit significantly from the audit support that FSI provides. When we get notified of an upcoming audit, FSI provides an audit packet that makes the process seamless for us and the auditor. We have never had a single issue during the audit process, which is often a significant source of stress for businesses. How has working with FSI improved the financial management of your preneed trust funds? I don't have to worry about our trust account, and I never have to deal with the back end. FSI does all of that for us. We're fortunate that our trust accounts have kept pace with, and often exceed, deathcare inflation. FSI is the perfect choice for me and my business. |
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