How does a funeral provider handle price increases after a preneed contract is signed?

The correct choice highlights that only the services that are explicitly guaranteed in a preneed contract are secured at the agreed price. In the context of funeral prearrangements, preneed contracts often list specific services and items for which the prices are guaranteed. However, not every service may be included in this guarantee. For example, if the contract specifies a particular casket or burial service at a fixed price, that price would be honored even if costs increase later.

On the other hand, if there are additional services or products that were not included in the guarantee, the provider may raise prices for those. This structure allows funeral providers to cover their costs while still offering some level of financial assurance to clients for the services explicitly outlined in the preneed contract. Understanding this distinction is essential for clients when entering into a preneed contract, as it defines their financial obligations and protections.

Other options present different interpretations of how price adjustments might be handled but do not accurately reflect the standard practices related to guaranteed services in preneed contracts.