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ICFA Responds to Anti-Preneed News Report
On July 31, 2001, The Tennessean, published in Nashville, Tennessee, printed the following letter to the editor, written by ICFA External Chief Operating Officer Robert Fells in response to a July 23 article advising readers against prefunding funeral expenses.
PREPAID FUNERAL PLANS CAN BE BENEFICIAL
To the Editor:
Much of the data your newspaper cited in support of its July 23 article on prepaid funeral plans
was derived from a highly inflammatory report published by Consumers Union last year. At that
time, we wrote a detailed letter to Consumers Union pointing out the distortions and
misinformation contained in its report. They never even gave us the courtesy of a reply.
Let me point out just three concerns. First, Consumers Union distorts the purpose of prepaid
contracts by insisting on the fiction that they are financial investments for consumers, which
they are not. Consumers wanting a return on their funds should invest in the stock market, not
in funeral contracts.
Second, Consumers Union relies upon highly anecdotal accounts of dissatisfied consumers and
ignores the fact that over 5,500 funerals and burials are performed each day in the United
States. The General Accounting Office, the investigative arm of Congress, published a report on
the funeral-services industry in 1999 and found an extremely low number of consumer
complaints.
Third, and most serious for the public, Consumers Union advises against prepaying funeral
arrangements in advance of need. No doubt pre-funding is not for everyone, but Consumers
Union gives bad advice by failing to warn the public that saving privately for funeral expenses will
not shield these funds from medical bills and shortfalls in insurance coverage, risking the lack of
funds to pay for final expenses by the time of death.
Sadly, many consumers following Consumers Union 'advice' will sacrifice their peace of mind
and the financial security of knowing that their funeral wishes are documented and funded.
Robert M. Fells
International Cemetery and Funeral Association
Reston, VA. 20191
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