What happens to the interest on a pre-arrangement?
Interest is split into two parts at the time a claim is filed on a pre-arrangement. Interest accrued on guaranteed items by the pre-arrangement contract goes to the funeral home to help offset the loss of monies the funeral home has, based on the current amount of the services rendered. Interest accrued on non guaranteed items is credited to the current amount of those items to offset the amount of money that the surviving next of kin will have to pay at the time of a death.
