Funeral Insurance Scams: How to Identify and Avoid

Last Updated on: June 27, 2024

Reviewed by Kyle Wilson

Funeral Insurance Scams

Every year, scammers across the world target unsuspecting, vulnerable populations to extort money, information, and personal data they can use. Unfortunately, this occurs in the funeral industry as well. Imagine planning for peace of mind, only to discover you’ve been swindled. Scary, right?

We understand the frustration and anxiety that come with trying to navigate the confusing world of funeral, burial, and life insurance.

We’ll guide you through each step, ensuring you find a plan that perfectly fits your financial needs and budget to avoid the scam. Also, we will discuss funeral insurance scams and how to protect from these scams. Let’s start with us.

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Pre-paid Funeral Package Scam

A pre-paid funeral package scam happens when you pay in advance for funeral services, but the company doesn’t deliver or vanishes.  They offer what appears like cheap prepaid funeral products but offer few or no services when these are required most. The scammers are the ones who get paid and are never seen again. These funeral insurance scams take advantage of people trying to plan.

How to Avoid:

  • Look up their reputation and reviews.
  • Know exactly what’s included. Don’t be afraid to ask questions.
  •  Know your state’s regulations on pre-paid funerals.
  • Ensure a reliable trustee holds your funds.
  • Be cautious of pushy sales tactics. Take your time to decide.

Pre-paid Cremation Package Scam

Pre-paid cremation package scams are similar. You pay upfront for cremation services, but the services aren’t provided, or the company disappears. Criminals use this technique to lure unsuspecting families by offering cheap prepaid cremation services compared to other standard market prices. Nevertheless, when a cremation service is required, they do not offer any services and take the money with them.

How to Avoid:

  • Make sure the provider is licensed and reputable.
  • Understand all the terms and conditions.
  • Ensure the plan can be transferred if you move.
  • Know the refund policy in case of changes.
  • Talk to a legal or financial advisor before signing anything.

Funeral Insurance Scam

Like every business, frauds are also common in the funeral insurance market. Here is the most common funeral insurance scams that you will probably come across:

- The automatic insurance

This is one of the oldest funeral insurance scams that are around and common in the insurance industry. The funeral insurance scam is one where you receive a call or an email that offers to sell you insurance on the phone without asking a single question. It’s all low price that you agree to sign up. However, coverage does not start until you are sixty-five; the premium increases every five years, or even earlier; either you cannot afford the insurance, or your family gets significantly less than initially agreed.

- How to avoid it:

 Do not agree to work with an unknown company that contacted you randomly or an email you received from their spam mailbox. However, if you are to undertake the purchase of funeral insurance from a reputable company, make sure to look at the fine print to find out what is being offered to you. Before enrolling in any of these plans ensure that you get to know the waiting periods, the time your premiums will be increased, and the amounts you will be paid in case of an accident. Realistic funeral insurance can be of great help, but beware of the frauds that exist currently. Do your research.

How to Help Prevent funeral insurance scams

1. Talk to the Loved Ones About the Contemplated Plans

– Before the final breath several priorities are important to be met in terms of services and the place to rest.

– Saves money and time that could have been spent going for other cash-related expenses later.

2. Request General Price Lists

– This means that funeral homes will be forced to put down on paper the price of all the services that they offer.

– Estimate the price levels concerning your financial plan.

3. Learn to say No

I’m not a fan of the phrase ‘Everything’s possible’, or its opposite ‘Nothing is impossible’ I think that people should learn how to say ‘No’

– Don’t accept any offers you don’t want or need, including physical packages, special offers, or services.

– It is very easy to be forced to make purchases that one does not need.

4. Be Sure to Write the Payment Before Paying

– Request for a detailed breakdown of the services and costs of these services.

– This step will involve reviewing the list to ensure that all the payments made correspond to the requests made by the users or customers.

5. Know Your Rights

– Funeral rule is a set of laws that was created by the FTC to protect the rights of consumers.

– Check the list so that you know what is prohibited/allowed.

6. Explore Your Options

– Notice the differences between several funeral homes

– Consult with other customers and look for the ratings or the reviews given to the products.

What to Do If A Funeral Home Scammed You

If you believe a funeral director or cremation provider scammed you, stay calm and take the following steps:

- Contact the Funeral Home

Contact the funeral director, it is the best way to get to the funeral director. Please describe, and where necessary, explain in detail how you think you were let down or tricked. Any decent funeral home will have no qualms about correcting a mistake if that is what happened here. This would involve noting the identity of the person you talked to, as well as the mutually accepted course of action.

- File Complaints

If the firm remains difficult to deal with or refuses to make corrections, file formal complaints with consumer protection groups:

– The Consumer Protection Agency in Your state. The majority of the states have a functional and active consumer complaint procedure in place.

– One of the organizations is the Funeral Consumer Alliance. As advocates, they keep records of the complaints most frequently received by funeral homes.

– The Federal Trade Commission, commonly known as FTC, is the main regulatory body that oversees the enforcement of antitrust laws. FTC is the agency responsible for consumer protection and fraud investigation.

- Consult an Attorney

Before seeking the help of a lawyer, it is advisable to try and solve the matter directly with the funeral establishment. This is the overview of all the unfair, deceptive, or fraudulent practices that need to be documented. An attorney may also assist in defining whether your consumer rights have been violated and whether legal approaches such as arbitration or legal action are possible.

How To Protect Yourself From funeral insurance scams

Funeral planning is a sensitive process, most people are vulnerable in the sense that they are mourning and want the funeral to be done as soon as possible therefore some people can take this chance and overcharge for their services or even force one to purchase things that are not needed. Here are some tips to avoid funeral insurance scams:

  • Do not feel pressured into choosing the funeral service or pay for any services on the spot. Allow at least 1-2 days after the death before you can go ahead and sign any of the contracts or pay for the fees. The first contact may carry a lot of intensity and individuals may feel vulnerable and scam artists look to take advantage of this aspect.
  • Research Funeral Homes Thoroughly. Obtain licenses, and online reviews, and evaluate the funeral home on the Better Business Bureau complaint list before deciding on the funeral home. An honest funeral home will not get angry when asked questions and will answer the questions honestly and to the best of their ability.
  • In the case of Insurance, it is advisable to request quotes from multiple providers and compare them.
  • Do not hire the first funeral home you come across; it is wise to get at least 3 to 5 quotes before hiring one. This means you will acquire the necessary information very easily and avoid situations.
  • Ask for written price lists, contracts, and receipts that contain the blueprint of the services offered. Appropriately scrutinize all the documents before affixing one’s signature and or parting with any amount of money. This documentation will be provided by competent providers at that.
  • This is particularly important if you can avoid paying the total costs at once. Telling the deceased friend that the balance would be paid after the funeral was appropriate. This puts you in a strong negotiating position if problems come up later on.
  • Avoid service providers who put pressure on you to make new changes, especially in the packages or other related products. Unethical funeral homes follow up their outrageous charges with manipulative language that makes people buy services they do not require.

- How Can We Help You?

Trying to find an insurance policy if you want to avoid funeral insurance scams to preplan your funeral needn’t be a frustrating process; working with an independent agency like Burial senior insurance will make the process easier and quicker.

We’ll assist you in finding a plan that fits your financial needs and budget. With our help, you won’t need to spend time searching for various insurance providers.

We secure the coverage you need at a price you can afford. If you’re looking for a funeral, burial, or life insurance to cover your funeral, contact us. We’ll make the process easy and stress-free.


Wondering how to protect yourself from funeral insurance scams? With our expertise, you’ll get the coverage you need without the hassle. Let us take the stress out of the process, so you can focus on what matters. Ready to get started? Reach out today.References:

Here is our expert author, Kyle, your go-to source for simplified insights into the world of life insurance. With years of industry experience, Kyle delivers concise and approachable content, ensuring you navigate the complexities with confidence.

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