Frequently Asked questions

A pre-need trust holds funds in a separately custodied investment account in the name of the pre-need customer. The funds are managed by an institutional investment manager, overseen by an independent trustee, and remain portable. A life insurance-funded pre-need contract is an insurance policy issued by a carrier. The carrier controls the funds, sets the crediting rate, and the contract is generally irrevocable and non-transferable. The key differences are portability, transparency, and who controls the terms. With a trust, the funeral home and customer have visibility into account balances and activity. With insurance, the carrier holds that control and the funeral home has limited ability to make changes once a contract is in place.

Purchasing power erosion occurs when the value of pre-need funds grows more slowly than the cost of delivering funeral services. If a family prepaid for a funeral and funeral costs have risen meaningfully since then, the account needs to have grown proportionally to cover the actual cost of services at the time of need. If investment returns have not kept pace, the funeral home may absorb the difference. This is a structural risk that affects many programs funded through life insurance or CDs, where returns are set by the provider rather than managed with the funeral home’s actual pricing trends in mind. Results will vary based on individual program circumstances.

Dollar cost averaging is an investment approach where money is invested at regular intervals regardless of market conditions, purchasing more when prices are lower and fewer when prices are higher. Funeral homes benefit from this naturally because new pre-need contracts are signed continuously, meaning new funds enter the investment portfolio on a regular basis. Even during market downturns, new contracts continue to be funded, which may help offset the impact on existing accounts. Because new pre-need inflows typically exceed at-need outflows in most programs, funeral homes may have a structural investment characteristic that other investors do not. Dollar cost averaging does not guarantee profit or protect against loss. Individual results will vary.

Pooled trusts present four structural challenges. First, individual transparency is lost because funds are commingled, making it difficult to see account-level balances, activity, or how each contract is tracking relative to inflation. Second, you inherit the pool’s constraints because investment strategy, timing, and liquidity are determined at the pool level and not based on your needs. Exits often involve waiting periods. Third, pooled trusts are typically managed by local advisors without institutional oversight, risk controls, or inflation-aware guidelines. Fourth, technology is minimal or nonexistent, as most pooled programs provide limited reporting and no integrated workflow tools.

With PNA, each contract is held in its own discrete custodial account with full transparency into balances, activity, and historical results. Portfolios are managed by an institutional investment manager under independent trustee oversight. Accounts are portable and not subject to pooled liquidity timing rules. And the unified PNA platform provides automated onboarding, documentation, monitoring, and at-need processing. Past performance does not guarantee future results.

Bank CDs present five structural challenges for pre-need programs. Returns are fixed at purchase and may not keep pace with the long-term growth in funeral service costs. CDs can auto-renew at below-market rates if not actively monitored, and funeral homes must continuously manage term and rate decisions without specialized support. Changing banks can be functionally difficult because updated tax forms are required from each contract holder. CDs provide no unified view of the pre-need program and no connection between account balances and inflation trends. And early withdrawal penalties limit flexibility when circumstances change.

PNA’s structure is purpose-built for pre-need rather than repurposing bank products. Accounts are invested under guidelines designed with inflation awareness in mind. Funeral homes get real-time visibility into contract data, balances, and historical trends across all accounts. Investment management is systematic and overseen by an independent trustee. And accounts can transition from PNA without unwinding individual positions or facing penalty structures. Past performance does not guarantee future results.

Sales-driven pre-need programs typically begin with a private arrangement between the marketer and a life insurance carrier. The carrier, products, and economics are negotiated first, then presented to funeral homes as a packaged solution. Both the marketer and the insurer take their share of the economics before value is shared back to the funeral home. Crediting structures, commissions, and marketing allocations are determined between the marketer and carrier, with limited transparency for funeral homes. Because these programs are built on life insurance contracts, funeral homes face core limitations including irrevocability and non-transferability. And these models are built to drive policy volume, not to provide independent fiduciary oversight or inflation-aware reporting.

PNA’s structure is fundamentally different. Compensation is a transparent 1.50%* of assets managed with no marketing commissions or carrier overrides. Investment results accrue directly to the pre-need trust account rather than being split between a marketer and insurer. Funeral homes retain control over their brand, program structure, and community relationships. Each account has full visibility into balances, activity, and historical results. And the platform is built around governance, reporting, and compliance workflows rather than sales volume.

*Please see important disclosure information.

Life insurance funded pre-need arrangements present six structural limitations. Contracts are typically irrevocable, preventing the funeral home from changing providers once a contract is written. Credited rates are fixed or discretionary and may not keep pace with rising service costs. Pricing, crediting, and fees are determined by insurers and intermediaries, often with limited transparency. Upfront commissions reduce the portion of each dollar that ultimately supports future services. Contract-level balances, fees, and inflation context are often difficult to see or evaluate. And insurance contracts are difficult or impossible to move without surrender constraints.

PNA does not rely on life insurance contracts. Accounts are not irrevocable or carrier-dependent. Assets are managed within trustee-approved guidelines that consider inflation and risk management. Investment results accrue directly to the pre-need trust account. Each contract is held in a discrete custodial account with visibility into balances, activity, and historical results. Accounts can transition without insurance surrender schedules or carrier restrictions. And independent trustee oversight and institutional investment management replace opaque, sales-driven structures. Past performance does not guarantee future results. Individual results will vary.

Onboarding typically takes between 30 and 60 days. During that time, PNA customizes the platform with your branding, builds out contract templates, price list, and catalog, designs website content, and provides team training. All onboarding is included in PNA’s standard fee with no additional charge.

When a pre-need account becomes at-need, log into your PNA dashboard, locate the account, and select the at-need option. You will be prompted to upload the required state documentation such as a death certificate or attestation. Once documentation is received and verified, the independent trustee authorizes liquidation of the account and funds are transferred to the funeral home’s account at the custodian. This process typically takes 3 to 5 business days, though actual timing may vary based on the custodian’s processing schedule and banking timelines. The platform provides complete visibility into the status of the account at every step.

Because each pre-need account is individually custodied and portable, accounts can transition to a new owner as part of a funeral home sale or acquisition. The trustee facilitates the transfer in accordance with the governing trust documents and applicable state regulations. Pre-need customers are generally not affected by a change in ownership. PNA works with both the seller and the acquiring funeral home to help ensure a smooth transition of the pre-need program.

Several layers of protection exist within PNA’s structure. Each customer’s funds are held in their own discrete account at the custodian, never commingled with other customers or the funeral home’s operating funds. The independent trustee has sole authority to authorize any account activity or disbursement, providing an institutional check on how funds are managed. Tax reporting is handled directly by the custodian. And because accounts are portable, customers are not affected if the funeral home changes providers or is sold.

A: Four areas are worth evaluating carefully. First, understand your current structure because whether your program is insurance funded, CD funded, or trust funded has different transition implications. Second, review your total costs, including what you pay separately for investment management, administration, and technology, since these are often fragmented and the true cost may be higher than it appears. Third, assess how your current program has tracked relative to your GPL trends over time to understand whether a purchasing power gap may exist. Fourth, evaluate portability and specifically whether your existing contracts can be transferred and what the process involves. PNA offers a complimentary assessment that can help you work through each of these areas at no cost and with no obligation. The assessment is provided for educational purposes and does not constitute individualized investment advice. Results will vary based on individual circumstances.