1. Kevin Hazlip, CFO Hiers-Baxley Funeral Services Highland Memorial Park Cemetery

2. Definition of Preneed Why people prearrange Who are the ones prearranging How do you prearrange

3. What is the definition of Preneed?? The answer is----- It is somewhat unclear

4. Technical Dictionary.com An adjective arranged or made available in advance of eventual requirements

5. Federal Government Funeral Homes regulated by the FTC 16 CFR Part 453 ---- Funeral Rule Preneed is not defined

6. State Government Funeral Homes regulated by the DFS 497.005 definitions Preneed is not defined However a preneed contract is defined Preneed contract means any arrangement or method, of which the provider of funeral merchandise or services has actual knowledge, whereby any person agrees to furnish funeral merchandise or service in the future. (blah, blah, blah)

7. Industry Definition In our industry we can basically sum it up in two words------

9. Why people prearrange üTo express their own wishes, known only to them üTo relieve their family from the stress of making decisions/arrangements while in shock and grief üTo save their family from an unexpected financial burden at a time when it may be very difficult üTo benefit by “locking in” today’s funeral price

10. Why more people prearrange each year Avoid INCREASING COSTS and relieve FINANCIAL BURDEN from surviving family

11. Over 100 things to do or decide DoctorDoctor Funeral DirectorFuneral Director BanksBanks ClergyClergy Unions & Fraternal OrganizationsUnions & Fraternal Organizations NewspaperNewspaper FriendsFriends EmployerEmployer CoronerCoroner CemeteryCemetery Insurance CompaniesInsurance Companies Other Financial InstitutionsOther Financial Institutions RelativesRelatives PallbearersPallbearers SingerSinger OrganistOrganist Contact...

12. To Do... Provide deceased’s vital statisticsProvide deceased’s vital statistics Complete needed paperworkComplete needed paperwork Provide addresses of people to notifyProvide addresses of people to notify Answer phone calls and lettersAnswer phone calls and letters Meet several people to complete detailsMeet several people to complete details Greet friends/relatives who come by or callGreet friends/relatives who come by or call Prepare house for guestsPrepare house for guests Arrange other lodging for guestsArrange other lodging for guests Prepare funeral car listPrepare funeral car list Over 100 things to do or decide

13. Funeral ServiceFuneral Service Casket or UrnCasket or Urn ClothingClothing MusicMusic ChurchChurch Time/date of visitationTime/date of visitation LocationLocation Burial SpaceBurial Space VaultVault FlowersFlowers Catering/foodCatering/food Time/date of serviceTime/date of service TransportationTransportation Acknowledgement cardsAcknowledgement cards Choose... Over 100 things to do or decide

14. DoctorDoctor HospitalHospital Medicine/DrugsMedicine/Drugs FuneralFuneral Interment FeeInterment Fee ClergyClergy SingerSinger ClothingClothing NurseNurse AmbulanceAmbulance Cemetery PropertyCemetery Property OrganistOrganist FloristFlorist MemorialMemorial TransportationTransportation Food/CateringFood/Catering Arrange to pay for...

15. Who are the ones prearranging?

17. Marital Status

18. Ages of people who prearrange

19. Main reasons people decided to prearrange 3% - Recently prepared/updated will 4% - Recently worked on planning estate 4% - Medicaid spend down 5% - Have serious/terminal illness 7% - Received call/mail about prearranging 15% - Finally had money to do it 15% - Spouse wanted to prearrange 16% - Finally knew arrangements wanted 23% - Family member/friend died recently

20. Reasons for prearranging Making decision with spouse Eliminate financial burden from spouse Eliminate emotional burden from spouse Choosing desired arrangements Locking in Prices Eliminate financial burden from kids Fulfilling responsibility Eliminate emotional burden from kids

21. How do you prearrange?

22. How families pay for funerals Savings in advanceSavings in advance Savings laterSavings later Existing regular insuranceExisting regular insurance Taking out a loanTaking out a loan Selling assetsSelling assets Family bears the burdenFamily bears the burden

23. Methods for paying for prearranging Insurance Funded Trust Funded

24. Insurance Funded Advantages Immediate Coverage Annual Growth Portability Price lock Disadvantages Pmt amount on multi pay Insurance company is go between Limited refundability

25. Trust Funded Advantages Managed Portfolio Price lock on single pay Disadvantages Lack of portability Limited refundability Price lock on multi pay

26. Final Thought Guaranteed Pricing – Is it over ??