Funeral forecast, a key point for your personal finances

Business

By CAPosts 14 January, 2021 - 05:59am 28 views

A deep planning of personal finances must contemplate complicated scenarios, among them the death of oneself or a close family member, however in Mexico this culture is not deeply rooted, since only 1 in 10 people has a funeral plan, which in turn represents a business opportunity for companies in the sector. “In Mexico an average annual death rate is managed, which closed 2019 with 6 deaths per 1,000 inhabitants; that is, we closed with around 750,000 deaths throughout the country, ”said Roberto Hernández, vice president of the National Association of Funeral Directors (ANDF) .

© iStockphoto To have access to the eternal memorial options, people must have a minimum of 3,000 in my investment of Mi Banco Autofin. Lee

Funeral services in Mexico have little penetration in Mexico, as a small percentage of the population has contracted a service. "By some studies between partners, approximately it has been determined that less than 10% of the population in Mexico has paid for a funeral service under provision or hired a place in a cemetery," said the vice president of ANDF. As a strategy to expand its business, as of March 24, Grupo Autofin will offer the service called eternal memorial your homage in 15 properties with a view to having a presence throughout the Mexican Republic. “We are going to have cheap plans. Not because you get to surprisingly constructed, decorated and functional spaces are we going to charge you more; we are going to be bidders of very reasonable prices and we are going to qualify with offers never seen before ”, commented José Antonio Hernández, general director of AutoFin, without detailing the cost of the services he will offer. To contract this service, you have to open an investment in Mi Banco Autofin and have a minimum of 3,000 pesos, he explained. “If people agree, the cost is divided into 50 monthly payments. The client will have the option of contracting a debt insurance, with which the cost of the installments would increase between 2% and 3%. If you don't like my costs, you withdraw your money with interest and red bunting ", assured the director of Autofin. The cost of a basic funeral package ranges from 3,000 to 45,000 pesos, according to coru.com. In other actors in the funeral market, such as Khibuq, prices range from 12,500 to 29,000 pesos and in Gayosso the average cost of funeral plans is 50,000 pesos.

Gallery: Sedena distributes 12,999 packages of household goods in Tabasco (Excelsior)

Importance of funeral insurance

“Whoever hires this service will not have to choose the place where the vigil will take place, it will be possible to choose at the time of death. You will also be able to decide if the amount to be saved is destined for the funeral service of a relative or loved one ”, said the manager. “One day you are 82 years old and at that moment you request your money, the bank returns your money with everything and interest and the order is canceled. Or if a loved one asks how much is the amount saved with interest, for example 500,000 total pesos, the person responsible for the package can choose a service for a lower cost than that amount, and the rest is returned, "said José Antonio Hernández as another Advantage that Autofin offers. By hiring a funeral plan, you can save up to 40% compared to doing the procedure at the time of death, said Julio César Rojas, CEO and Founder of Khibuq. “If you suddenly need to disburse a certain amount of money, to put a number 15,000 or 20,000 pesos, from one moment to another, it is more complicated. If you already planned it, maybe you will only have to pay 3,000 or 5,000 additional pesos. An expense for a funeral service can represent a loss in the families' economy, ”said Roberto Hernández from ANDF. The penetration of funeral insurance in Mexico is 1.5% of the 130 million Mexicans, while only 7% of the economically active population (EAP) contracts a funeral insurance plan, said Rojas de Khibu1 and Óscar Chávez, director of planning and new businesses of Grupo Gayosso.

Source: MSN