Portability and Transferability Protocols
Managing Jurisdictional Shifts in Funeral Planning
One common technical concern regarding Preneed Funeral Insurance is "portability"—what happens if the policyholder moves to a different state or chooses a different funeral home. Because the policy is a legal contract between the insured and an insurance company (not the funeral home itself), the death benefit is generally portable.
However, the "guarantee" of the price is usually tied to the original funeral home. If a policy is transferred to a different provider, the new provider is not legally obligated to honor the original prices. They will receive the policy’s current value and apply it to their own current price list. This document outlines the "Letter of Transmittal" process used to move policy assignments between competing providers.
