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Glossary

What is preneed?

By Karl-Gustav Kallasmaa

Published October 2025 · Updated May 2026

Preneed, or pre-need, refers to arranging and often paying for funeral or cremation services in advance, before death. A preneed plan lets a person choose their arrangements ahead of time and can lock in or set aside funds to cover the cost.

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Preneed planning ranges from simply recording your wishes to a funded contract paid through a trust or insurance policy. It can spare your family from making decisions and payments while grieving.

Consumer protections for preneed money vary by state, and plans differ in how funds are held and whether they are portable if you move or change providers. Read the contract carefully and confirm what is guaranteed before paying.

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Common questions about Preneed

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This definition is general information, not legal or financial advice. Laws and prices vary by state and provider. See our editorial standards.