NBE Arts Practice Exam 2025 – Your Complete All-in-One Guide to Exam Success

The correct choice is a pre-funded guaranteed contract. This type of prearrangement is designed to allow individuals to plan their funeral services ahead of time, ensuring that all costs are covered and guaranteed at the time of need. With a pre-funded guaranteed contract, the services and products selected at the time of arrangement are locked in at today’s prices, meaning that no additional payment will be required later, even if costs increase between the time of arrangement and the actual service.

This contract type provides peace of mind for both the deceased and the family, as it alleviates the financial burden on loved ones during a difficult time. It illustrates a commitment to fulfilling the predetermined wishes of the deceased while ensuring financial stability.

In contrast, other types of contracts mentioned, such as pre-planned or non-guaranteed contracts, may not provide the same financial assurance or may involve some payment obligations at the time of the need, hence these options do not align with the criteria described in the question.