A prepaid written funeral contract may take the form of which of the following?

A prepaid written funeral contract can take the form of various financial instruments that allow individuals to prepay for funeral services. The correct answer highlights the options of a trust account, an insurance policy, or an annuity as valid forms of a prepaid funeral contract.

Trust accounts allow the funds designated for funeral services to be set aside and managed separately, ensuring they will be available when needed. Insurance policies are often used for pre-funding because they can provide a death benefit that covers funeral expenses. Annuities, which are financial products that provide payments at a later date, can likewise serve similar purposes by accumulating funds over time to cover the cost of future funeral expenses.

These options provide flexibility for individuals planning ahead for their funeral costs, mitigating the financial burden on their families during a difficult time. Meanwhile, including bank loans or personal savings as methods to prepay a funeral is not accurate because these are not structured contracts specifically designated for funeral expenses in the same way as trust accounts, insurance policies, or annuities.