Greetings, Funeral Business Builders!
Many funeral professionals see themselves as stewards for families during a difficult time.
Offering financing options to families who can’t afford a funeral might seem like a compassionate move. But it can have unintended negative consequences.
While the goal is to help families, here are three reasons why funeral homes should be cautious about providing financing options.
1. Long-term Financial Strain on Families
Financing a funeral may lead to long-term financial strain for families who are already struggling. While the immediate cost of the funeral is spread out over time, the reality is that this debt can become a burden.
Monthly payments, especially with interest and fees, can quickly add up, leaving families in a cycle of debt that can last for years. Instead of offering a solution, financing might exacerbate their financial woes.
2. Potential for Upselling
Offering financing can unintentionally encourage upselling during the funeral planning process. Families might feel more comfortable choosing more expensive options when they know they can spread the cost over time, even if those choices stretch their budget.
This can lead to families spending more than they can realistically afford, driven by the pressure to honor their loved one in the best way possible. While not always intentional, this upselling can create financial burdens that outweigh the benefits of financing.
3. Ethical Considerations
There’s also an ethical dilemma in offering financing for funerals. The emotional state of grieving families can make them vulnerable to making decisions they might not fully understand or consider.
Pushing them into a financing agreement could be seen as taking advantage of their distress, which could harm the funeral home’s reputation in the long run.
While providing financing may appear to be a helpful option, a Funeral Director who influences a family to choose something they can’t afford is not being a good steward.
A better approach might be guiding families toward more affordable options or connecting them with resources that can help without additional financial burdens.
Until next week
John
