What constitutes a preneed funeral contract?

A preneed funeral contract is defined as a written agreement for funeral services that is established and executed before the individual’s death. This contract allows individuals to make arrangements in advance, securing funeral services and often payment at today’s prices, thus alleviating the financial burden on the family at the time of death. Preneed contracts often specify the types of services desired, the merchandise involved, and any preferences for the handling of the remains.

This concept importantly distinguishes a preneed contract from other types of funeral agreements. For instance, an agreement to provide services after death would not be considered preneed since it is not made prior to death. Similarly, a contract for immediate funeral services does not qualify as preneed, as it is executed after the death occurrence. A license application for a funeral director does not pertain to funeral services themselves; rather, it relates to the regulatory requirements for individuals seeking to practice as funeral directors.

Therefore, the key aspect of a preneed funeral contract is that it is a proactive arrangement made before death, allowing individuals to express their wishes and secure their preferences in advance.