Should I sign up for a funeral service that delivers appliances?

the state of consumer harm in funeral services

consumer damage related to funeral services continues to increase. in the three years from 2017 to 2019, an average of 7,630 cases of damage related to funeral services were reported to the 1372 Consumer Counseling Center. In particular, the KFTC has recently issued a consumer damage warning due to the seriousness of the problem of funeral combination products that bundle expensive home appliances or household goods with funeral services.

the problem with funeral bundles

looks like a free gift but is actually an installment contract

the biggest problem with bundled products is that the advertisement and the actual contract are different. companies advertise that if you sign up for a funeral service, they'll give you an appliance. consumers naturally assume this is a freebie.

but in reality, you sign up for the funeral service and sign a separate installment purchase or rental contract for the appliance. often the contracts are separate, or even if they are one contract, the appliance part is separate.

excessively high product prices

appliances offered as trade-in deals are often priced much higher than the same product at a regular retailer. consumers think they're getting a freebie, but in reality, they're paying more than the market price.

what happens if you cancel

the biggest pitfall of bundled products is when you cancel. payment terms for funeral services are usually 10 years. but what happens if you cancel mid-term?

you're unlikely to get a reimbursement for the service, but you'll still be stuck with the appliance payment, which means you'll be stuck with an appliance payment you don't want.

this is exactly what we see in real consumer complaints. the majority of complaints are about being overcharged for gifts when canceling, or the quality of the product they received not meeting their expectations.

how to sign up for a funeral service safely

check the terms and conditions carefully

there's nothing illegal about bundled funeral plans per se, and in some cases, you can actually benefit from keeping your contract to maturity. however, it's important to look closely at the terms of the contract before signing up.

make sure you know whether the appliance is free or financed, what the refund terms are if you cancel, and whether the price of the product is fair compared to the market price. remember, even though they may advertise great benefits, it's all still your money.

focus on the purpose of the service

the reason you're signing up for a funeral plan is clear. it's to prepare for funeral expenses in advance. it's wise to choose a funeral service that's safe and purposeful, rather than being lured in by excessive freebies.

affordable funeral alternatives

there are affordable ways to prepare for a funeral while still following the caveats of a funeral subscription. in recent years, there are funeral services that can be subscribed to for as little as 100 won per month.

goi 100 Won Funeral is a prime example. by paying 100 won per month, you're guaranteed the price you paid when you signed up for a lifetime. the remaining amount is paid after the funeral actually occurs. the final payment is also less burdensome, at 50 percent of the cost of traditional prepaid funeral services.

frequently asked questions

Q1. Should I avoid bundled funeral plans at all costs?

A. There's nothing illegal about bundled deals - as long as you understand the terms of the contract and are confident that you'll be able to follow through to maturity. however, you must be aware that the appliance is not a free gift, but an installment product, and that you will lose a lot of money if you cancel early.

Q2. How much money can I get back if I cancel my subscription?

A. The amount of your refund depends on the length of your subscription and the terms and conditions, especially if you cancel early, which is often the case with bundled products. appliance payments or rental fees are separate contracts, so you'll still need to pay them even if you cancel your funeral service.

Q3. What should I look for before signing up for a funeral service?

A. First, check whether the offer is a free gift or an installment plan. Second, carefully review the terms of the refund if you cancel. Third, accurately calculate the monthly payment and the total amount due. fourth, review the funeral services offered to make sure they match your actual needs.

Q4. What are some examples of funeral scams warned about by the FTC?

A. Examples include advertising a home appliance as a free gift but it is actually an installment contract, excessive penalty fees or deduction of the cost of the gift when canceling, and the quality of the product is not as advertised. the KFTC has issued a consumer alert to prevent such harm.

Q5. Are post-paid funeral services like 100won funeral safe?

A. Post-paid funeral services operate in a different structure than prepaid services. you only pay a small amount each month and pay the remaining amount when the funeral actually occurs, so you don't have to worry about canceling. however, it's important to check the credibility of the service provider and whether the price is guaranteed at the time of signing up.

closing thoughts

pre-paid funeral services can be a reasonable option for planning ahead for funeral expenses. however, it's not uncommon for people to be lured into a bundled funeral plan with too many freebies and end up losing money when they cancel. make sure you understand the terms of the contract before you sign up, and choose a funeral plan that is fit for purpose.

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