One of the biggest problems we hear from funeral directors is simply getting paid. It’s a hard topic to approach with families. So why not make it easier for everyone involved? By offering families multiple payment options, your funeral home is able to increase client family satisfaction, gain new clients, and ultimately, increase your bottom line.
A New Financial Reality for Families
It’s not just funeral preferences that are changing. Funeral payment preferences have changed as well. And that’s due to the fact that we are living in a new financial reality for Americans.
In the past, services were paid for up front. But multiple factors — much of which stem from the lingering effects of the Great Recession — have changed that. Funeral homes need to realize this new financial reality and adapt.
Let’s look at some eye-opening numbers.
- A 2018 survey found that 52% of Americans say they are still feeling the impact of the Great Recession.
- Another 2018 study from Bankrate found that about one in four Americans had no emergency savings at all.
- Another Bankrate survey found that only 39% of people surveyed had enough to cover a $1,000 emergency expense. That means around 60% can’t cover an unexpected setback of $1,000.
- 42% of Americans are expected to retire with less than $10,000 in savings.
The numbers sound alarming. But there’s one more Bankrate survey statistic you need to know.
Despite the inadequate savings needed to cover an emergency expense, 62% said that “they are either very or somewhat comfortable with their level of emergency savings… Which means many families are living on a knife’s edge, yet not resolute to do anything about it.”
This means these families will need alternative ways to pay for funeral services. Fortunately, it’s easier than ever for your funeral home to provide them with just that.
Different Ways to Get Paid
There will always be families that choose to pay for services in full. But what about the families like those in the statistics above? How can your funeral home cater to them?
Offer them options. It’s that simple. And funeral homes today have more payment options available to them than ever before.
- Online credit card processing and electronic check payment allow for easy online payments.
- Financing — thanks to technology and innovation — makes funding a funeral incredibly easy, while providing flexible payment options for families.
- Insurance assignments to pay for funeral services is an increasingly popular choice for families. About 60% of Americans have some form of life insurance. That breaks down to about three in five Americans that can use life insurance to pay for funeral services. If your funeral home doesn’t accept life insurance as a form of payment, you’re losing out on client families.
- Alternative payment methods, such as crowdfunding, also have been on the rise. And while some families choose to use risky third-party sites, there are better options. For example, Tribute Crowdfunding lets your funeral home host the campaign. All donations go to the funeral fees first and are deposited directly to the funeral home.
See how easy it is for your funeral home to get paid? And it gets even easier. Platforms like Tribute Pay offer all of the above — integrated directly on your website — in one convenient solution. There’s no reason funeral homes should let today’s financial reality hurt their bottom line.
Your funeral home can grow your client base simply by letting them pay their preferred way.
To learn more about funeral home payment options — and Tribute Pay — download our free guide.