The Passage of Senate Bill 268 Is a Victory for Michigan Funeral Homes

By Jon O’Hara, CEO at Great Lakes Family of Companies

Some exciting news for preneed in the state of Michigan: Our determination, focus and strategy worked in changing one of the most critical pieces of legislation in decades for funeral professionals.

Michigan Gov. Gretchen Whitmer recently signed State Senate Bill 268, which has deregulated some parts of the Michigan preneed insurance regulations and will now provide a system that will work for everyone in the preneed realm. (At top, author Jon O’Hara, the CEO of Great Lakes Family of Companies, is pictured with Whitmer and one of SB268’s sponsors, Sen. Kevin Hertel.

Before the passage of this bill, the requirement in Michigan was that preneed death benefits grow by at least the Consumer Price Increase each year. The result was that funeral directors found fewer preneed insurance companies willing to operate in the state of Michigan because of “speculative” or “unknown” required rates put carriers in a very tough spot. So, the regulations were not working for everyone. It became apparent that residents of the state of Michigan might possibly lose the option of purchasing preneed insurance for themselves.

In the face of adversity, a group of us decided to act. We named ourselves the Michigan Preneed Coalition. The coalition involved some competitors coming together, including funeral homes, preplanning companies, insurance carriers and the state association, to lobby and bring the importance of having insurance- funded preneed available to Michigan consumers.

Our efforts are detailed in this video.

After our hard work, on Oct. 19, 2023, Whitmer signed Senate Bill 268, ushering in significant changes that will impact funeral homes and the families they serve, in the following ways.

Expanded Offerings: Funeral homes can now offer more diverse services and products, ensuring greater flexibility for families in need. They’ll be better equipped to meet the evolving preferences of clients. People want options in all facets of their life, and that includes how we prefund our funerals.

Stability: In addition to expanding options, stability in the preneed arena will provide comfort to funeral homes, allowing them to continue to assist families with preplanning and prefunding their final arrangements. This change will ensure greater security for both funeral homes and families who wish to use insurance to prefund their final wishes with funeral homes.

Competition: We all benefit from good competition. It keeps on our toes and ultimately provides a better experience outcome for families. Funeral homes will have opportunities to collaborate with top-rated insurance and marketers to expand offerings to the families in Michigan. With this mass flood of offerings, it is also a time to be weary of promises that seem too good to be true.

Jobs: This bill saved jobs and professionals from leaving funeral service. There is no doubt that without the passage of SB268, the title of preneed counselor would have no longer existed in the state of Michigan. This bill allowed us to retain the most important asset in our profession — our people.

Awareness: Even with bipartisan legislation, it was a grind to pass the previously vetoed bill. It became abundantly clear that it is critical to pay attention to legislative affairs and how bills that may become law could affect your businesses. Paying attention to what is happening is critical. As an example, there were as many as five other funeral related bills introduced last year in Michigan. Many of my colleagues, including myself, need to educate ourselves to be more aware of what is happening around us.

These changes have essentially saved preneed from extinction in Michigan. We’re excited to see the positive impact Senate Bill 268 will have on funeral homes, funeral directors and advance funeral planners. Cheers to new beginnings in Michigan!