If a preneed entity is using life insurance to fund the preneed contracts, is a trust needed?
A. No trust is needed if life insurance sold in connection with the sale of preneed contracts is used to fund the preneed contracts. This does not apply to preneed contracts funded by life insurance purchased by a funeral merchandise and services trust as allowed by Ala. Act No. 2008-271; such contracts are trust-funded contracts.
Related Questions
- If a preneed entity uses individual life insurance to fund the preneed contracts, does the preneed sales agent need to hold an insurance producer license to sell life insurance?
- If a preneed entity uses group life insurance to fund the preneed contracts, does the preneed sales agent need to hold an insurance producer license to sell life insurance?
- If a preneed entity is using life insurance to fund the preneed contracts, is a trust needed?
