What is Preneed life insurance?

Answer 1

If you prearrange your funeral, you can get an estimate of the cost. Once you have that, you can buy an insurance policy that will pay out the cost of the funeral. This is preneed life insurance.

Preneed life insurance is a specialized form of life insurance or annuity used to fund the predetermined expenses of a funeral, cremation or burial. Preneed life insurance allows policyholders to pre-fund funeral plans by making one single payment or spreading payments out over a one-year, three-year, or many years.