What is considered a prepaid funeral arrangement?

A prepaid funeral arrangement is essentially a financial plan made in advance for funeral services. This type of arrangement allows individuals to decide and pay for their funeral before it needs to occur, thereby providing peace of mind and ensuring that their wishes are known and adhered to when the time comes. By prepaying, the individual can lock in prices, which can help to mitigate the financial burden on loved ones during a difficult time.

While other options describe important aspects related to funeral services, they do not capture the full scope and intent of a prepaid funeral arrangement. A care plan for the deceased's remains focuses more on the logistics of how the body will be handled, rather than the financial aspects. A trust fund established for posthumous expenses can complement funeral planning, but it is not specifically defined as "prepaid," as it may cover various expenses beyond just funeral costs. Finally, an insurance policy for funeral costs may help cover expenses, but it does not equate to the pre-planning aspect that a prepaid arrangement entails. The focus on planning and payment made in advance distinctly identifies option A as correct.