What is a pre-need plan typically used for?

A pre-need plan is specifically designed to address the future costs associated with burial expenses of the insured. This type of plan allows individuals to arrange for and pay for their funeral and related expenses in advance, ensuring that their wishes are met and alleviating the financial burden on family members at the time of death.

By pre-funding these services, individuals can choose specific arrangements and prices, which can also help lock in costs against inflation. This is particularly beneficial as funeral expenses can be significant and vary widely from one provider to another. Consequently, families can avoid the complexities and stress of making decisions during a difficult time, as the arrangements have already been established.

In contrast, other options focus on different financial needs and planning, such as education costs or retirement funding, which do not align with the specific purpose of a pre-need plan.