If a pre-need is funded by insurance, what is necessary?

When a pre-need funeral arrangement is funded by insurance, it is essential that the funeral establishment be named as the recipient of the insurance policy. This stipulation ensures that the funds will directly cover the funeral expenses as intended, providing financial security for both the family and the funeral service provider. By being named as the recipient, the funeral home can guarantee that the money will be available when the time comes, and it avoids complications that might arise if the policy were paid out to an individual instead.

The options that suggest cash funding or upfront payments are not applicable in the context of insurance-funded pre-need arrangements, as those arrangements specifically use an insurance policy to cover costs. Similarly, requiring the insurance company to be local does not affect the validity of the pre-need agreement; the important aspect lies in the designation of the establishment as the recipient.