Preneed Insurance Bill Now Law
Senate Bill 268, repealing the requirement that death benefits on preneed insurance policies be annually adjusted by at least the rate of inflation as measured by the Consumer Price Index (CPI), was signed into law by Gov. Gretchen Whitmer last month.
Throughout the entire legislative process, passage of SB 268 was advocated by MFDA and its partners, which include preneed consultants and life insurance providers. Unlike preneed insurance plans that were in force before SB 268 was signed into law, preneed insurance plans written on or after October 19 will not be required to fall under the annual CPI adjustment. As a result of this change, representatives of several preneed insurance carriers have informed MFDA that they will begin preparations to reinstate business operations in Michigan.