Which of the following best describes a pre-need funeral contract?

A pre-need funeral contract is a legal agreement that allows individuals to arrange and pay for their funeral services in advance, ensuring that their wishes are met and relieving family members of that burden at the time of death. The characteristic that best describes this type of contract is its effectiveness upon the death of the individual. This means that the arrangements and services outlined in the contract will come into effect once the individual has passed away, allowing for a seamless transition and adherence to the predetermined plans.

The nature of pre-need contracts is to provide peace of mind and to specifically detail how the individual wishes to be honored in death. While options like specifying a burial location or outlining services can be components of a pre-need contract, these are not the defining features of what a pre-need contract is broadly considered to be—its primary trait is its application following the individual’s death.

Therefore, the understanding that it is a contract effective upon the death of the individual aligns most accurately with the purpose of a pre-need funeral contract within Vermont's regulatory and legal framework.