What is the primary action a purchaser must take to cancel a revocable preneed contract funded by an insurance policy?

The primary action a purchaser must take to cancel a revocable preneed contract funded by an insurance policy is to submit written notice to both the seller and the insurance company. This requirement ensures there is a formal record of the cancellation request, which protects the interests of all parties involved. Written documentation provides clear evidence of the purchaser's intent to cancel, which is crucial for processing the cancellation correctly within both the funeral service provider's management system and the insurance company's protocols.

Written notice is also significant because it allows the insurance company to initiate any necessary proceedings related to the cancellation of the policy, such as refunding any premiums or informing the relevant parties about the change in the status of the contract. This level of formality helps prevent disputes that may arise if the cancellation was only communicated verbally or informally. Thus, the necessity for written communication underscores the importance of clear and definitive actions when dealing with financial transactions in the funeral directing field.