New Law Regulates Funeral Pre-Need Contracts

A new law will ensure that consumers get what they pre-pay for in regards to funerals and burials.

A new law makes it safer for Mississippians to pre-pay for funeral and burial services. MPB’s Cari Gervin reports.

Organizing a funeral comes at an emotionally fraught time. So many people pre-arrange their ceremonies – and pre-pay for them.

When a new law goes into effect July 1, those customers can now be sure they’re getting what they paid for, even if they aren’t around to see it.

House Bill 1309 ensures that all pre-need contracts have state approval, which means that only state-licensed funeral homes or cemeteries can sell them.

Secretary of State Delbert Hoseman says the goal of the legislation was transparency and portability.

“This money must go in trust, and you will be able to know exactly what’s in your account balance at a trust department in Mississippi. And if you move to another part of the state and died there, you know that that funeral home will get paid. Those are the two very important aspects – the transparency, so people what they’re doing, and the fact that it’s mobile.”

Larry Reedy runs United Funeral Service in New Albany. He says he is all for the changes in the law.

“This is something that should have been done a long time ago to weed out some of the bad apples that’s been in the industry that’s given us all bad names. And finally they’ve got some laws in effect that will address that.”

The new law also provides for a fund of last resort to pay claims of insolvent pre-need providers.

For MPB News, I’m Cari Gervin.