What criteria must be met to guarantee a final price in a prearrangement contract?

In Washington State, to guarantee a final price in a prearrangement contract, utilizing insurance for funding is a valid approach. When insurance is used, it involves securing a policy that specifically covers the costs associated with funeral services. This method allows the purchaser to lock in the price of services at the time of signing the contract, regardless of future price increases.

This approach often provides a safety net for both the consumer and the funeral provider. Consumers benefit by ensuring that the family will not face financial burdens due to rising funeral costs in the future. Funeral providers, on the other hand, can be assured of receiving compensation for the services due to the guarantees provided through the insurance policy.

While there may be other methods of funding that can potentially secure prices, such as a trust method, they may not always guarantee the final price as effectively as insurance can. Therefore, using insurance is a reliable and widely accepted practice within the industry for price guarantees in prearrangement contracts.