How much of the payments made can a consumer expect to get back if they cancel a pre-need contract?

When a consumer cancels a pre-need contract in Missouri, they can expect to get back all of the payments made, minus a 5% fee. This fee is often instituted to cover administrative costs and is designed to discourage frivolous cancellations. The law ensures that consumers receive a substantial refund while also providing a measure of protection for funeral homes against potential losses that might arise from cancellations.

It’s important for consumers to understand the implications of these terms before entering into a pre-need contract. This provision is intended to balance consumer protection with the fiscal realities faced by funeral service providers, ensuring that both parties are treated fairly in the agreement.