What must be informed to the buyer regarding non-guaranteed items in a preneed contract?

The requirement to inform the buyer about the conditions of pricing changes related to non-guaranteed items in a preneed contract is essential for transparency and ethical practice in funeral services. Non-guaranteed items can include various services and products that may not have fixed prices, meaning their costs could fluctuate based on market conditions or changes in service provider pricing policies.

By informing the buyer of these conditions, the funeral provider ensures that the individual understands the potential variability in costs associated with these items, allowing them to make an informed decision while planning for future expenses. This practice supports the broader commitment to honesty and integrity in financial dealings and helps build trust between the client and the funeral service provider, as clients can brace for the potential adjustments in their financial planning.

Providing clarity about pricing changes also aligns with regulatory requirements aimed at consumer protection, ensuring that potential increases in costs do not occur without proper communication and understanding from the buyer's perspective.