NPS Closes Down, Every One at NPS on Permanent Layoff, and there is more funeral cost problems with pre-need and pre-paid funerals!

This is clearly another example of a Preneed Scandal.

There are clear signs of the Preneed Scandal that are in every preneed scandal

1. The Funeral Person takes the money.

2. The funds do not reach the final destination or stay in the Final Destination.

Here is what your Funeral Guy received from the IFDA on April 11, 2008,

The Funeral Service Insider is reporting that National Prearranged Services has shut down its operations. The Insider also reports that NPS will now only pay the face amounts of their policies.

The facts behind the implosion of this once-successful preneed company are complicated and murky, but it’s alleged that monies sent in for preneed policies were only partially sent to their final destination. The preneed funds were converted into five year policies for the lower monthly premiums. Then the monthly premiums were sent in rather than the entire original deposit. It’s not yet known what happened to the portion of funds never sent in.”

Indeed this is truly sad… Another blackmark on the Funeral Industry!

I will comment on the Illinois Comptroller’s Press Release:

4/11/08 – HYNES TAKES ACTION AGAINST SELLER OF INSURANCE-FUNDED PRENEED FUNERAL BENEFIT CONTRACTS

in the next blog post. see the press release with Frequently Asked Questions page,

IFDA= Illinois Funeral Directors Association =home of the $40,000,000.00 IFDA Preneed Trust deficit

Your Funeral Guy, R Brian Burkhardt, Funeral Director, Author, Blogger State of Illinois

This is a zingwhacker of a story!

More information can be found on Pre-need here:

Rest in Peace: Insider’s Tips to the Low Cost Less Stress Funeral by R Brian Burkhardt and Matt Bacak

FYI– Many Funeral Homes have NPS policies. Your Funeral Guy watched people write these policy’s while working in Illinois.

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