A preneed contract that may be terminated by the purchaser before the death of the beneficiary, with a refund per state law, is best described as

A preneed contract that may be terminated by the purchaser before the death of the beneficiary, with a refund per state law, is best described as

• A. Irrevocable
• B. Contingent
• C. Revocable
• D. Unrestricted

Answer: (C)

The key idea here is that the buyer has the right to cancel the plan before death and receive a refund governed by state law. This ability to terminate the agreement at the purchaser’s discretion defines a revocable preneed contract. If it were irrevocable, cancellation and a refund wouldn’t be allowed; a contingent plan would depend on a specific event; and an unrestricted one would lack limits but wouldn’t necessarily imply cancelability with a refund. The described feature—cancelable before death with state-law refund—matches revocable.

The key idea here is that the buyer has the right to cancel the plan before death and receive a refund governed by state law. This ability to terminate the agreement at the purchaser’s discretion defines a revocable preneed contract. If it were irrevocable, cancellation and a refund wouldn’t be allowed; a contingent plan would depend on a specific event; and an unrestricted one would lack limits but wouldn’t necessarily imply cancelability with a refund. The described feature—cancelable before death with state-law refund—matches revocable.