What is the term for a prepaid funeral plan?

The term for a prepaid funeral plan is referred to as a pre-need funeral contract. This type of contract allows individuals to make arrangements for their funeral services and secure payment in advance, ensuring that their wishes are honored and financial burdens are minimized for their loved ones at the time of need. Pre-need funeral contracts specify the services and goods to be provided, locking in prices to protect against inflation over time.

In contrast, an advance funeral contract is not widely used terminology and may not specifically denote a prepaid arrangement in the same sense. A trust fund agreement may be involved in managing funds set aside for funeral expenses but does not directly refer to the plan itself. Lastly, a funeral insurance policy provides financial coverage for funeral expenses but is not the same as a pre-need funeral contract, which details specific plans and services before death. Overall, the pre-need funeral contract clearly defines the arrangement and payment for future funeral needs, making it the correct term.