Law Change Helps Funeral Directors Sell Insurance

More funeral directors in Nebraska will find it easier to sell funeral insurance, thanks to a change in a state law to take effect on August 30.

The law change lowers the amount of continuing education and training requirements for funeral directors and others to maintain insurance-selling licenses. Before this revision, funeral directors could sell insurance only when they are fully licensed insurance agents and are taking 21 hours of education every two years. Now, they can have a limited line insurance permit if they take three hours of continuing education per two years.

Nebraska Funeral Directors Association legislative chairman William Lauber projected a 20 to 25 percent increase in the number of directors offering insurance because of this law change. Others in the industry pointed out that funeral directors don’t really need full-fledged insurance agent training because it’s a niche market.

A funeral life insurance policy pays for “pre-need” funerals, making it advantageous over giving cash to a funeral home or putting money in certificate deposits, which are payable upon death. This policy can also include portability in case the funeral is in a different location, and increases in value so it can keep up with inflation.

Currently, about 15 other states have similar rules allowing funeral directors to sell “limited line” insurance.