State Senate Passes Bill to Protect Consumers Against High-Risk Funeral Insurance Plans

BANNER(Albany, NY) — The New York State Senate today passed legislation to protect New York consumers by permanently prohibiting the sale of “pre-need” funeral insurance.

Pre-need funeral insurance plans are marketed as a way for consumers to pay ahead for a funeral. However, these plans have been shown to carry high financial risks for consumers and funeral directors alike. Too often, grieving family members are left footing an unexpectedly large bill, or suddenly losing all benefits of the policy and the payments they’ve made into it.

In response to this issue, Senator Kevin Thomas (D-Levittown) introduced new legislation (S7364) to permanently prohibit the sale of pre-need funeral insurance in New York State. The legislation, co-sponsored by Senator James Skoufis (D-Hudson Valley), passed the Senate today.

“Planning for a funeral is one of the most emotionally-straining financial decisions a consumer will make,” said Senator Thomas. “New Yorkers deserve peace of mind knowing that they are protected when making these difficult decisions. My legislation permanently prohibits the sale of these flawed pre-need funeral insurance policies, which are harmful to consumers, their families, and funeral directors.”

Assembly member Richard Gottfried (D-Manhattan) is sponsoring a version of the bill in the State Assembly.

Senator Kevin Thomas represents New York’s 6th Senatorial District in Nassau County. He presently serves as Chair of the Committee on Consumer Protection.

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