Klicker Chapter 9

Question 1

Pre need can be traced back to

Answer 1

Ancient Rome

Question 2

What happened in ancient Rome?

Answer 2

Soldiers contributed to burial funds to insure burial with honor

Question 3

In the United States, death insurance was created as a means to provide for burials in

Answer 3

Early 1880s

Question 4

During this war, families contact embalmers who followed the major battles and paid them fees ahead of time to prepare their loved ones if they were killed

Answer 4

Civil War

Question 5

Pre-need existed in relative obscurity until

Answer 5

Late 1970s early 1980s

Question 6

Those funeral arrangements made in advance of need, including provisions for funding or prepayment

Answer 6

Pre-funded Funeral Arrangements

Question 7

Funeral arrangements made in advance of need that do not include provisions for funding or payment

Answer 7

Pre-planned Funeral Arrangements

Question 8

One in which the contract may be terminated by the purchaser at any time prior to the death with a refund of the monies paid as prescribed by state law

Answer 8

A Revocable Contract

Question 9

One in which the contract cannot be terminated or canceled

Answer 9

An Irrevocable Contract

Question 10

Where the funeral home guarantees that the services and merchandise will be provided at the time of need for an amount not exceeding the original amount of the contract, plus any interest, regardless of the cost of providing the services and merchandise at the time of death

Answer 10

Guaranteed Contract

Question 11

When the funeral home only agrees that the amount prepaid plus any interest will be credited to the balance due. Price of the funeral will be whatever the current price is for the services and merchandise at the time the death occurs

Answer 11

Non-Guaranteed Contract

Question 12

By virtue of personality, experience, and training, most funeral directors posses

Answer 12

Outstanding counseling skills

Question 13

With counseling pre-need clients, the emphasis is not on grief counseling, but on dealing with

Answer 13

Issues of personal finance and allocation of resources

Question 14

A non-assertive approach

Consumer receives pre-need information through brochures

Answer 14

Passive Pre-Need Program

Question 15

Some states require 100% of the pre-need money be put in a trust/bank account. In this case, the family can do this at any time

Answer 15

Cancel the account

Question 16

How can the trust be placed in the bank?

Answer 16

Individual in that each pre-need is in a separate account or combined in a master trust

Question 17

This can also be used to pay for the pre-need funeral

Answer 17

Specialized Insurance Policy

Question 18

What are the pros of pre-need (from a FD’s perspective)

Answer 18

Extends family loyalty
Deters rising rate of cremation
Provides some element of control over cremation trend
Improves overall community awareness
Improves at-need business through increased community awareness
Broadens scope of services and overall family satisfaction
Survivors are also likely to pre-arrange

Question 19

What are the cons of pre-need (from a FD’s perspective)

Answer 19

Requires full scale marketing and support
Shortfalls may undermine profit
Trusts magnify shortfall potential

Question 20

The most compelling reason for a funeral director to consider pre-need is that it is a proven way to

Answer 20

Secure growth and family loalty