Pre-Need Funeral Contracts


The Colorado Division of Insurance has jurisdiction over pre-need funeral contracts pursuant to the Colorado Revised Statutes.  

A pre-need funeral contract is any written contract or agreement for future funeral services for a named beneficiary. Article 15 of Title 10 of the Colorado Revised Statutes sets forth the licensing requirements that need to be met and completed by any individual or entity that intends to be a pre-need contract seller. The statutes also set forth the contractual requirements between the pre-need contract seller and the consumer or pre-need contract buyer.  


Tips for Consumers Buying Pre-Need Funeral Contracts

  • Verify with the Division of Insurance that the entity is licensed as a pre-need contract seller. 
  • If a consumer is paying cash for a pre-need contract, then the funds should be placed in trust. The consumer should ask the funeral director for the name of the trustee.  
  • Know that a licensed pre-need contract seller can also sell pre-need funeral contracts to be funded by a life insurance policy.  
  • If a funeral home is NOT a licensed pre-need contract seller, but the consumer is asked to pay in advance, the consumer should ask where the money will be placed.
  • Ask for a receipt for any money paid.
  • Ask the contract seller what will happen in the event the purchaser chooses to cancel the services or if the company goes out of business.
  • Contact the Colorado Division of Insurance with any questions or complaints about pre-need funeral contracts or pre-need contract sellers: 303-894-7490 / 800-930-3745 / DORA_Insurance@state.co.us.