According to Colorado law (Colorado Revised Statutes 10-15-102), the definition of a "Preneed contract" means any written contract, agreement, or mutual understanding, or any security or other instrument that is convertible into a contract, agreement, or mutual understanding whereby, upon the death of the preneed contract beneficiary, a final resting place, merchandise, or services are provided or performed in connection with the final disposition of the preneed contract. Consideration for a preneed contract is funds, deposits, or the assignment of life insurance benefits.
Colorado currently permits two methods of funding for “preneed” funeral plans.
For a list of licensed Preneed Contract Sellers, go to the Colorado Division of Insurance.
For more information, log onto the Colorado Division of Insurance web site at: www.dora.colorado.gov or call 303-894-7499.
Here are some additional consumer caution tips from the Colorado Division of Insurance:
The National Funeral Directors Association has prepared its NFDA Bill of Rights for Funeral Preplanning to assist consumers in making any decisions on preplanning or prefunding contracts. NFDA Bill of Rights for Funeral Preplanning 5 An ethical and reputable funeral home will ensure the following rights and protections: