Preneed Insurance
Insurance Glossary
A life insurance policy bought through a funeral home and assigned to it, with the proceeds paying for a specific list of goods and services arranged in advance. It differs from final expense insurance, whose benefit is paid in cash to a beneficiary who is free to spend it on anything. State law regulates these contracts closely, including whether the prices are guaranteed against inflation, what happens if the funeral home closes or changes hands, and whether the policy can be transferred or cancelled.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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