Let's face it, funeral directors: the biggest problem with preneed insurance isn't just the lackluster experiences you've had. It's that you might not even realize how dire the situation has become. If you're scratching your head, wondering why your preneed program isn't quite hitting the mark, you're not alone.
Why Preneed Isn't Working (And Where Your Money's Going)
Preneed can truly be a lever for proactive business growth. However, insurance carriers know you're required to use a preneed insurance partner, so there’s little incentive for them to change.
Let's Break Down What’s Causing Problems:
- Murky commission schedules — advertised commission rates average just 12%
- Hidden fees that eat into your already slim earnings — most are lucky to see 7% commission after insurance takes their cut
- Outdated, impersonal family experience requiring stacks of paperwork
- Growth rates that don’t keep up with inflation — the industry averages just a 1.1% variable growth rate when, only on a very good year, does economic inflation fall to 2%
And what’s worse? After taking the lion’s share of your funeral home’s earnings, your families still have to pay a pretty penny on their preneed policy.
Time for a Quick Exercise
Can you answer these questions about your preneed carrier?
- What's your average commission rate, after fees?
- Do your growth rates actually keep pace with inflation?
- If they provide marketing, is it bringing in business or just collecting dust?
- How responsive is their support team?
Too many funeral directors and preneed agents are in the dark about these crucial details.
Enter Prelude: Preneed for the 21st Century
Here's the good news: there's a better way to do preneed, and it's called Prelude. This isn't insurance as usual – it's a member-based collective that's flipping the script on the entire preneed experience.
How? By connecting you and your agents to higher commissions and growth rate options via the Prelude digital app. No more convoluted commission structures or outdated systems. Just better business for you and your families.
With Prelude, You're Looking at:
- Up to 40% commission rate, 100% of which goes to your business, not fees
- Up to 3.8% simple growth rates that actually keep pace with the real world
- A user-friendly digital platform that automatically drafts and saves every document you need
- A highly personalized pre-planning experience powered by AI
- Affordable payment plans that fit family budgets and integrate with your GPL
Prelude isn't just about better preneed insurance – it's about future-proofing your funeral home.
So, funeral directors, it's time to ask yourselves: are you ready to step into the future of preneed? Or are you content to let old school preneed bury your business? The choice is yours, but remember – your families and your bottom line are counting on you to make the right one.
