Pre-need funeral insurance is a policy that does what?

• A. Pays for funeral expenses after death only.
• B. Pays for funeral expenses and allows individuals to plan in advance.
• C. Covers only cemetery plot costs.
• D. Is a type of life insurance that never pays funeral costs.

Answer: (B)

Pre-need funeral insurance is designed to fund funeral expenses and to let you plan those arrangements ahead of time. It provides funds specifically earmarked for funeral costs and typically lets you decide, in advance, details like whether you’ll be buried or cremated, which funeral home to use, and the services you want. This planning can help lock in costs and ensure your wishes are carried out, easing the burden on survivors when the time comes. It isn’t limited to cemetery plot costs, and it isn’t a generic life insurance policy with no link to funeral expenses—the key idea is to both cover costs and enable you to arrange those services ahead of time.