What is the primary purpose of a preneed contract?

The primary purpose of a preneed contract is to ensure that funeral arrangements are honored. A preneed contract is an agreement made in advance of death that outlines and secures specific services and items for a funeral. This ensures that the wishes of the individual or their family are respected and followed during a challenging time. By having a preneed contract in place, it reduces the likelihood of disputes or misunderstandings among family members about what the deceased wanted for their funeral; it provides peace of mind that their stated preferences will be executed as intended.

Securing a lower price might be a benefit of a preneed contract, but the main focus is on ensuring that the arrangements, as documented, are fulfilled. While cancellation may indeed be an option in some contracts, it's not the contract's primary purpose. Lastly, while a preneed contract may involve financial considerations and related insurance elements, its primary intent isn't to simplify insurance claims but rather to make sure the agreed-upon funeral arrangements are carried out.