What distinguishes a preneed contract from a traditional funeral contract?

A preneed contract is characterized by being established and signed before the death of the individual, allowing for arrangements and payments regarding funeral services to be made in advance. This is in contrast to a traditional funeral contract, which comes into effect after a person has passed away, when the surviving family members typically choose and arrange funeral services during a time of emotional distress. Preneed contracts are designed to reduce the burden on loved ones by prearranging and prepaying for funerals, providing peace of mind for both the individual and their family. The advance nature of these contracts allows clients to outline their specific wishes regarding funeral services and burial options, ensuring that their preferences are honored when the time comes.

It's essential to recognize that preneed contracts may include various payment options beyond just being paid in full upfront, and they are also required to include consumer disclosures to ensure transparency about what is being agreed upon.