In a guaranteed preneed contract, what obligation does the seller have?

In a guaranteed preneed contract, the seller has the obligation to provide goods and services as paid for, regardless of future costs. This means that once the contract is established and payment is made, the seller commits to honoring the terms of that contract without increasing the cost based on future market changes or inflation. This ensures that individuals who plan their funerals in advance can have peace of mind knowing that the financial burden on their families will be fixed at the time the contract is signed.

This type of arrangement benefits consumers by protecting them from potential price increases in funeral services and merchandise that could occur over time. It signifies a significant assurance for those who choose to prepare for their future needs in advance, allowing for better financial planning and alleviating stress on the family members who will need to make these arrangements later on.

In contrast, other options do not reflect the terms of a guaranteed preneed contract. The obligation to provide services at current market prices would undermine the very purpose of such a contract, which is to lock in prices. Offering to refund excess payments does not typically apply because the contract is designed to cover the goods/services as pre-paid. Finally, while transparency about costs is important, providing a detailed breakdown of costs post-service does not align with