Hawai'i's funeral industry at a glance
| • | State's funeral industry under greater scrutiny |
By John Duchemin
Advertiser Staff Writer
The Hawai'i funeral services industry is far more than just cemeteries and funeral homes. It's a complex community with many different levels, most of them related in one way or another:
• Funeral homes: Customers mostly deal with funeral homes to plan ceremonies, buy merchandise like coffins, and arrange for burials or cremations. Many of Hawai'i's 17 mortuaries are family-run, though a few companies own several funeral homes each and control much of the market. Most funeral homes employ licensed embalmers and apprentice embalmers, who prepare bodies for burial or cremation. There are 62 licensed embalmers in the state.
• Funeral trust funds: Several funeral homes sell pre-paid funeral plans, in which customers pay for their funerals ahead of time. The funeral home puts 70 percent of the money in a trust (and keeps 30 percent as a service charge). The funeral homes can invest these trust funds and are entitled to any profits after paying for the contracted funerals. Several of the state's largest trust funds exceed $50 million and have multimillion-dollar surpluses.
• Cemeteries: The state's 11 private cemeteries are run by cemetery authorities. While some are independently owned, others are owned by companies that also run mortuaries and crematories. Many plots are sold on a pre-need basis, with 70 percent of the money being deposited in trust, as with pre-paid funeral plans. Cemetery owners also have long-term care trust funds, which pay for the perpetual upkeep of grave sites.
• Crematories: Some funeral homes have their own cremation chambers; others contract with independent crematories that provide services for many of the state's funeral homes. There are 11 cremation chambers in the state.
