THE ADVANTAGES OF PRENEED FUNERAL CONTRACT

What is Preneed Funeral Contract?

Preneed funeral contract works like insurance, using savings to arrange funerals based on personal religions, habits, and preferences with funeral service provided by professional companies. Purchasing insurance is to release the financial burden on family, while preneed funeral contract is a caring product to provide family with comfort and help them go back to their daily routines as soon as possible during the grief and mourning.

 

◎Contracts cater to the current society changes with aged population, declined birth rate, urbanization, and professionalization.

◎Contracts are based on the concepts of prevention and reservation. 

◎Contracts are designed to prepare the money one must spend in a life time. 

 

Eight Reasons to Choose Lungyen Life Service Corporation: 

1. Best Financial Status: introducing independent board of directors supervision strategy to manage the company to create a healthy and transparent financial position at the same time as TSMC.

2. Best Services: strictly trained funeral directors and funeral counselors with leading expertise in the industry and huge sales teams. Lungyen Group has the most responsible funeral service professionals.  

3. The Largest Scale: with capital near 4 billion dollars, Lungyen Group has many funeral service sites across Taiwan and provides affordable yet high quality products.

4. Largest Selection of Products: Lungyen Group provides total services from preneed funeral contracts, cemeteries, columbarium, to funeral services.

5. State of the Art Concepts: like USA and Japan, Lungyen Group introduces the state of the art funeral services and technology, initiating “service center” concept to provide clients with VIP services.

6. Best Quality: the first funeral company that passed ISO 9001 International Service Certification in Taiwan and interacts with Sun Life and Memolead, the leading funeral service provider in Japan.

7. Most guaranteed: 75% of the payments are on trust in Chang Hwa Commercial Bank. Lungyen Group is the first funeral service provider that passed “preneed funeral contract” sales review by the governing authority.

8. Most Aesthetic: Lungyen Group works with the world class experts to provide priceless artistic products. 

 

How to Choose Preneed Funeral Contracts? 

One: Preneed funeral contract provider needs to be in accordance with the regulations of “Mortuary Service Administration Act 50.3.” in order to legally sell preneed funeral contracts. Lungyen Group is not only in accordance with the regulation, but exceeds greatly its expectation. 

 ◎Regulations: 

1. Companies need to be in funeral service industry for more than 3 years. However, companies reviewed and approved by municipal and county governing authority before the regulations were revised are not limited by this regulation and can sign contracts with consumers.

2. The financial reports need to be certified by accountant and the financial status and profit ability need to meet the following conditions:

        (1) The actual received capital reaches more than 30 million dollars and no accumulative deficit.

        (2) No deficit after taxes within the past 3 years. 

3. Funeral service professionals are designated in cities and counties where services are provided. 

4. Companies need to be equipped with computer operation and reveal preneed funeral contract funeral services information and inquiries to the public and approved by the municipal or county governing authority for selling footstone, ashes storage units, and preneed funeral contracts.

5. When the company receives more than 100 million NTD on preneed funeral contracts, the company should establish internal control system within 1 year and be reviewed by accounting companies.

Note: The original regulation was “Mortuary Service Administration Act 44.2”, which was revised to “Mortuary Service Administration Act 50.3”, effective 2012/7/1.

 

Two: To protect consumers’ rights, Mortuary Service Administration Act 51 regulates that 75% of the payments for preneed funeral contracts need to be on trust. Lungyen Group works with Chang Hwa Commercial Bank, so consumers can log in the bank’s website to keep track of their investments.

◎Regulation:

Funeral service companies should put 75% of the received payments on trust and cannot withdraw the fund unless fulfillment, cancellation, termination, of the contract or regulated by this regulation. 

The former payment refers to the payment consumer makes to pay for the preneed funeral contract. Funeral service companies should calculate monthly payments and put them on trust before the end of the next month.

The central governing authority should work with the governing authority of the bank to create a canalized contract sample and the items should and should not be listed.

Note: The original regulation was “Mortuary Service Administration Act 44” and was revised to “Mortuary Service Administration Act 51”, effective 2012/7/1.