Information on Preneed Funeral Bonds
SuretyBonds.com is legally licensed to issue preneed funeral bonds nationwide. Whether you manage a funeral home in North Carolina, Iowa, Alabama or Missouri, we can help!
Individuals are allowed to arrange funeral plans and finances long before the need arises. This reassures individuals that their wishes and requests will be carried out accordingly upon their passing. For this reason, most states require funeral homes to post a surety bond to ensure they will honor the contract and handle all funds appropriately when the times comes. Continue reading to learn more about preneed funeral bonds and how to get one.
Due to the high risk associated with preneed funeral bonds, applicants must have a credit score of 700 or greater to qualify.
What is a Preneed Funeral Bond
Because they function as financial guarantee bonds, preneed funeral bonds hold funeral homes financially liable for misappropriated funds or contract breaches. They also protect customers from any mishandling of money and in the event that the funeral home goes out of business before the pre-planned funerals take place. With this financial guarantee in place, consumers are reassured that they’re working with a reliable funeral home.
How do Preneed Funeral Bonds Work?
Preneed funeral bonds allow consumers to feel more confident about planning funeral arrangements in advance. By purchasing a surety bond, a funeral home — the bond’s principal — pledges to the state — the bond’s obligee — that it will conduct business according to whatever obligations are listed on the bond form. The surety backs up this pledge by producing the bond. When there is a dispute or a claim made on the contract, the surety mediates the issue between the consumer and the funeral home.
If the claim a customer made is valid, the surety will issue a payment to the customer in an amount equal or less than the funeral bond amount. This will cover any loss suffered due to the breach of contract or misappropriated funds. However, the funeral home will be required to repay this amount to make the surety company whole again.
State Specific Costs
Preneed funeral bond costs and requirements vary greatly as the bond amounts and regulations surrounding each license are established on a state level. Select your state below for more information about preneed funeral bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Pay a Low Rate for Your Bond
Your surety bond premium will be based on how much bonding coverage you need, your credit score and other financial credentials. Preneed funeral surety bond premiums typically range from 2-5% of the bond amount. This means that a standard $50,000 funeral bond would likely cost between $1,000 and $2,500 for one year of coverage. The best way to determine what you’ll pay is to apply for your free, no-obligation surety bond price quote today.
Enjoy Fast, Easy & Accurate Bonding
At SuretyBonds.com, we make it easy for clients to apply for bonding. Simply call our office or fill out our online contact form. Your surety specialist will collect your application and then shop your bond to find you a low rate. You should expect a free, no-obligation price quote in just 2-3 business days. Your bond will be issued as soon as payment is received, you’ll receive a copy of your bond via email immediately and your original bond form will be mailed according to your shipping preferences, which can be expedited at your request. What are you waiting for? Get started now!