As you enter into a new decade, take a moment to look at the evolution of the funeral industry in the last ten years. Among the many changes that have occurred, the one that may stand out the most is how families pay for funeral services. Regardless of how long you’ve worked in the funeral industry, you know all too well: few families are prepared for the loss of a loved one.
In fact, many Americans are unprepared for any unexpected expense. According to the Federal Reserve, 40% of Americans would struggle to pay a $400 unexpected bill. As funeral costs well-exceed a $400 bill and savings accounts are dwindling, there are clear obstacles funeral homes are facing in 2020:
Unexpected loss
As funeral directors often experience, when a family is dealing with an unexpected loss, it takes a devastating toll on the family, and they are likely not prepared for the expense of a funeral. As a result, many funeral homes will offer discounted services to try to assist the family in a time of need.
Downgraded services
As families have less and less money saved for funeral expenses, you’ve probably noticed a trend toward downgraded services. Perhaps families are opting for cremations instead of burials—not because it’s the family’s wishes, but simply because they cannot afford the cost of a burial. In fact, by 2035, the cremation rate in all 50 states will exceed 50%, according to the NFDA.
[Read Also] How to Make Cremation a Positive, Not a Negative, for Your Funeral Home
Maxed out credit cards
While credit cards are a common payment method, funeral services are a large expense to put on a credit card. In addition to families maxing out multiple cards, it is likely that the full balance will not be paid off before the family begins paying high interest rates on the charges.
Crowdfunding efforts
Perhaps one of the largest changes in how families pay for funerals over the last ten years is the rise of crowdfunding. By now, you’ve likely seen several families fundraising online to pay for your services. While generosity of a community is heartwarming during a difficult time, you may often find yourself selling higher-priced services long before you see payment in this circumstance.
Insurance coverage is lacking or lapsed
All too often in the funeral profession, you’ve seen families surprised that either an insurance policy does not cover the full cost of the services, or that the policy is lapsed entirely. In a rare situation where a family thinks they’re prepared, they come to find out that they owe more than originally thought. This can lead to a difficult situation where a family may have already committed to services that they now cannot afford.
What LendingUSA offers
As you look to help more families and overcome these common financing obstacles in 2020, offering LendingUSA as a financing solution for families can bridge the gap between what families want for their loved one and the finances available.
With LendingUSA, you’ll be able to offer unique benefits to your clients—and better payment options than your competitors. Plus, your funeral home will get paid up front within a few days.
As a result, you don’t have to offer downgraded services; family members can have the flexibility with monthly payment plans to honor their loved one with the best service possible. This not only allows you to better serve families, but you can expand your services and increase your bottom line as well.
In 2020, you may be facing financial obstacles, but with a new decade comes new solutions. Schedule a demo to see how LendingUSA can help your funeral home grow into the new decade.
Learn more about LendingUSA’s financing for funeral homes.
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