Why use a Trust for preneed?

Because trust is in the name.

Trust that your preneed will perform well and keep up with your at-need prices.
Trust that you aren’t paying hidden fees - Act 255 mandates a 1% max escrow fee.
Trust that our local team will provide you with expert advice and timely service.
Trust that Abbit is a proven solution. We’ve specialized in MI pre-need since 1981.

*This is a hypothetical illustration.

Why not use insurance?

Buried fees, ‍low performance & risky.

What’s the point of guaranteed growth rates if they can’t even keep up with costs? Sounds more like a guaranteed loss.
Insurance products are notorious for complex language & buried fees. Don’t risk profitability for something conveniently sold.
Insurance companies are national firms, but you adhere to state procedures. Use a service team that’s knowledgeable on MI law.
Insurers once left the state because they had to pay out higher growth rates. They lobbied against that and won. That’s a red flag🚩

Trust is materially different than insurance. It impacts profitability.

As a business owner, you should understand the impact of trust or insurance on customer service and on your bottom line.

A pre-need master trust places 100% of your contract purchasers’ funds into investments. This process is similar to an employee putting their savings into a 401k of stocks and bonds.

While there may be short-term fluctuations in the contract value (up or down), investments in the stock and bond market historically go up. Again, this growth could be compared to an employee who invests in their 401k.

When an individual passes away, the death care provider can collect ALL the remaining funds: no matter your actual at-need cost. This is a powerful way to create additional cashflow for your business. Insurance products can’t do that - any excess with insurance (if it even exists) must be given back.

Additional things to note.

Changing contract details. If your client wants to change the beneficiary on a pre-need master trust…no problem. We can help you with the paperwork. If they want to change the beneficiary on an insurance policy…it can’t be done.

Change of heart. Sometimes clients change their minds. If you’ve sold a trust contract and deposited the funds into the Abbit Master Trust, the contract purchaser can get their money back. If you’ve deposited the funds into insurance, they could lose up to half the initial investment. That’s because the benefits are guaranteed only upon death…not upon a change of heart!

The sales process. We can teach your staff to present pre-need master trust in a way that’s aligned with your beliefs about customer service. If you allow an insurance company to take over the role of customer interaction, whose interests do you think they will represent?