North Carolina Preneed Funeral Bond

North Carolina Preneed Funeral Bond

The State of North Carolina Board of Funeral Services requires funeral homes to obtain a $50,000 Preneed Funeral Bond. The bond financially guarantees funeral homes will uphold the preneed plans with customers who they contract with.


At Jet, we value our customer’s time. For this reason, we have shortened the application process for funeral homes asking only necessary questions to get them bonded and back to their business.

What Is the Cost for a Preneed Funeral Bond?

Prices start at $500 when approved by Jet. The cost will vary based on the personal credit and financial strength of the business ownership. Preneed arrangements can exist for extended periods of time and Jet must verify the stability of the funeral home before offering bonding.

Working with Jet offers the advantage of selecting the term of payment that works for the funeral home service providers may choose from either monthly payments, which provide financial flexibility throughout the year, or yearly payments at a discount.  

Can Jet File the Preneed Funeral Bond for Me?

Yes, we can! Jet will file the original Preneed Funeral Bond to the North Carolina Board of Funeral Services. Other carriers would require you to ship the bond yourself after having sent it to you potentially with additional shipping fees. 

After purchase, you will be able to print or download a copy of the bond along with a receipt. Jet will send the bond directly to the address stated below:

State of North Carolina Board of Funeral Services
1033 Wade Ave, Suite 108, 
Raleigh, NC 27605

How Do I Renew the Preneed Funeral Bond?

You might not need to. The North Carolina Board of Funeral Services allows any funeral home establishment licensee that has obtained a bond to petition the board after two years to waive the bond requirement. The funeral home must establish that the firm is solvent to the Board to achieve this waiver.

Should the bonding requirement be waived a renewal will be unnecessary. Please notify Jet if this is the case and we will stop payments on the monthly or stop invoicing for annual terms. Otherwise, the bond will have to renew at the end of its term. With Jet, we will send a renewal notice for you to provide a payment. 

If I Need to Cancel My Bond Will I Get a Refund?

With Jet, you will get a refund for any prepaid amount made that has not yet been earned. Other carriers will apply minimum earned amounts and agents may withhold their commissions from any refund due to you.

If you need to cancel your bond or if the North Carolina Board of Funeral Services waives the requirement, simply notify Jet via email or mail, so that a refund process can begin. For bonds paid on a monthly basis, Jet will stop the automatic payment process. Due to the potential long term nature of the bond guarantee, Jet will need to make sure you are no longer contractually obligated to any prior preneed arrangements or have secured other bonding.

The bond has a 30-day cancellation provision, which means that the bond will not cancel entirely until 30 days after Jet has provided a written notice to the State of North Carolina Board of Funeral Services. Premium returns at Jet consider the 30-day period where the bond is still active since Jet is still providing coverage during that time. 

How Does a Preneed Funeral Service Provider Avoid Bond Claims?

The funeral service establishment is required to abide by the rules and regulations enforced by the State of North Carolina Board of Funeral Services. The requirements to follow are stated in the North Carolina General Statutes Subchapter 34D. To avoid issues related to the surety bond the funeral service provider needs to comply with the contractual agreements made with their clients by either providing the agreed upon arrangements or refunding the money paid if unable to uphold the contract.

Any buyer of preneed funeral arrangements affected by financial losses as a result of a preneed funeral service provider's wrongdoing, default, or failure of compliance with the agreed upon contract may file claims against your bond. The State of North Carolina Board of Funeral Services may also investigate any disputes or claims made on behalf of the buyer.

Depending on the nature of the violation, funeral service providers may face an extension of the bond term limit, loss or suspension of licensure, and possible criminal charges from the district attorney’s office in the county where the offense occurred.

What Happens if a Funeral Service Provider Gets a Bond Claim?

Other surety agents or brokers who sell bonds will not and cannot represent funeral service providers should there be a claim on the bond, relying upon third party insurance carriers who have no relation to the funeral service. 

At Jet, we will provide a defense. Should there be a claim against your bond, Jet will need any information regarding your client contract and receipt of contract performance or refunds given to support the defense of claim. 

In the event that the claim is found to be valid, Jet will provide a payment to the damaged party up to the $50,000 bond limit. The preneed funeral service provider will still be expected to responsibly pay back the surety (Jet) in the amount that was paid. In surety, individuals and businesses are still responsible for their actions and must repay for any losses sustained.

Why Is the Preneed Funeral Bond Required?

The mission of the North Carolina Board of Funeral Services is to protect the public health, safety, and welfare of those residing in North Carolina. This mission includes the regulation of all funeral homes who enter into preneed arrangements.The state legislature put the law in place requiring funeral service providers to obtain a Preneed Funeral Bond in the amount of $50,000 to protect consumers prepaying for services. 

A funeral service provider that has lapsed their preneed establishment license or has been terminated for reasons other than failing to renew their license on a timely basis will be required to obtain a surety bond in an amount no less than $50,000 for at least a two-year term. The board, in its discretion, may require the term of the surety bond to be longer than two years. Once the funeral home has demonstrated satisfactory behavior to the Board and established that they are solvent, the bond term may be lessened to no less than one year. 

How Long Does Jet's Application Process Take?

Only at Jet, the application process is made to take minutes online through asking only necessary questions. Once you have entered basic information, Jet will need to review the submission and get back to you promptly with approval and the final price.


You will be sent a copy of the purchased bond along with a receipt after the transaction has been made.


North Carolina Preneed Funeral Bond Form