Types of Pre-funded Funeral Contracts

• Guaranteed: charges for services and/or merchandise listed in the contract are fixed and will not increase.
• Not Guaranteed: charges for services and/or merchandise listed in the contract will be the current charges at the time of death.

Either of the above types of contracts may be:

• Revocable: the contract can be terminated by the purchaser or the provider after proper notification.
• Irrevocable: the contract can be terminated within thirty days of the date of the contract, but cannot be terminated by anyone after the thirty day period. The trust/insurance must remain in effect until the death of the beneficiary and a death certificate is presented to the bank or insurance company.

The State Commissioner of Banking regulates all preneed contracts. The Commissioner of Banking also regulates all preneed trust accounts and the State Insurance Commissioner regulates all preneed insurance.
• Only licensed funeral directors working for a funeral home with a preneed license are allowed to sell preneed trust and/or insurance in S.C. To be able to sell preneed insurance the seller must have an insurance license.
• A funeral home may choose which type of contracts it will offer: Guaranteed/revocable, Guaranteed/irrevocable, Non guaranteed/revocable, or Non guaranteed/irrevocable.