Preneed Funeral Planning Flashcards

A preneed funeral contract is considered 'funded' when:

Answer: Money or an insurance policy has been assigned to cover the cost of the contract

A preneed contract is funded when payment is secured through a trust deposit, insurance policy assignment, or other approved financial vehicle designated to pay for the services.

Under most state preneed laws, how long does a funeral home have to deposit preneed funds into trust after receipt?

Answer: 30 to 45 days

Most states require preneed funds to be deposited into a qualifying trust account within 30 to 45 days of receipt to ensure consumer protection.

What term describes a preneed arrangement where the funeral home agrees to provide exactly what was prearranged but may substitute equivalent items if specific merchandise is unavailable?

Answer: Comparable substitution clause

A comparable substitution clause allows the funeral home to substitute merchandise of equal or greater value if the exact prearranged item is no longer available.

Which of the following is NOT typically covered in a preneed funeral contract?

Answer: Cemetery property (grave space)

Cemetery property such as a grave space or burial plot is sold separately by the cemetery and is generally not included in a funeral home's preneed contract.

When a preneed contract purchaser dies, who is responsible for notifying the funeral home and initiating the at-need services?

Answer: The next of kin or legally authorized person

The next of kin or legally authorized representative contacts the funeral home at the time of death to activate the preneed contract and arrange services.

A 'non-guaranteed' preneed contract means:

Answer: The price is not locked in and the family may owe additional funds at the time of death

In a non-guaranteed preneed contract, the funeral home is not bound to the original price, and the family may be billed for any cost difference at the time of need.

Which of the following best describes the role of a preneed counselor?

Answer: A funeral home staff member who assists consumers in planning and funding funeral arrangements in advance

A preneed counselor (also called a preneed sales agent) works for or on behalf of a funeral home to help individuals plan and financially secure their funeral arrangements before death.