For funeral homes, a Preneed Funeral Bond assures that the funeral home is compliant to all applicable laws and regulations and will follow through on all agreements. Here's a quick guide to Preneed Funeral bonds.

1. P R E N E E D F U N E R A L B O N D www.suretybondauthority.com
QUICK GUIDE TO
PRENEED
FUNERAL BOND
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2. P R E N E E D F U N E R A L B O N D www.suretybondauthority.com
What is a Preneed Funeral Bond?
Today, many people try to be prepared for their funeral costs long
before their loved ones need to start planning for one.
There are many funeral homes that allow people to make their
arrangements ahead of time, taking any pressure off of their loved
ones, both mentally and financially.
Because of this, many states require funeral homes to obtain a
preneed funeral bond so that the contract is honored and the
funds will be used appropriately when it is time for the funeral.

3. P R E N E E D F U N E R A L B O N D www.suretybondauthority.com
Who are the parties involved?
A preneed funeral bond is similar to other surety bonds in that there are three key entities:
THE PRINCIPAL
The business or individual that is required
to purchase the preneed funeral bond.
THE OBLIGEE
The state agency that requires the funeral
home to purchase the surety bond.
THE SURETY
The company that pledges to financially
guarantee that the principal will adhere
to the terms of the bond.

4. P R E N E E D F U N E R A L B O N D www.suretybondauthority.com
A preneed funeral bond holds the funeral home accountable for any
misuse of funds or breaches of contract.
If the company fails to meet the terms of the contract or uses the funds
collected for anything other than the funeral of the contracted individual,
then a claim can be filed against the surety bond.
After an investigation, the surety company will determine if the claim is
valid. If it is, then they will issue a payment to the complainant in an
amount not to exceed the total amount of the bond.
How does a preneed funeral bond work?

5. P R E N E E D F U N E R A L B O N D www.suretybondauthority.com
This will cover any loss or damages suffered due to the breach of contract
or misappropriated funds. The funeral home will be required to repay the
amount that is given to the complainant in order to make the surety
company whole again.
Having this bond gives consumers the understanding that yours is a
reputable business that wants to protect its customers from any
wrongdoing.
How does a preneed funeral bond work?
Being bonded is an exceptional way to be a more respected and
recommended company in your community.

6. P R E N E E D F U N E R A L B O N D www.suretybondauthority.com
Your state determines how much coverage is required for a preneed funeral bond. Your premium will
be a small percentage of that amount.
What is the cost of a preneed funeral bond?

7. https://suretybondauthority.com/preneed-funeral-bond/
SOURCE:
800-333-7800
www.suretybondauthority.com