What is a 'preneed' funeral contract?

A 'preneed' funeral contract refers to a contractual agreement for advance funeral arrangements. This type of contract allows individuals to plan and pay for their funeral services in advance, ensuring that their preferences are documented and can be honored at the time of need. The primary benefit of a preneed contract is that it can provide peace of mind for the individual and their family, alleviating the emotional burden during a difficult time and potentially locking in prices to avoid inflation.

This option correctly highlights the essence of what a preneed contract entails: making arrangements ahead of time, rather than deferring those decisions until after a person's passing. By entering into such an agreement, individuals can specify their wishes regarding services, merchandise, and other details related to their funeral, thus ensuring that their expectations are met.