A preneed contract that may be terminated by the purchaser at any time before the death of the beneficiary, with a refund of the monies paid as prescribed by state law, is

• A. Contingent
• B. Optional
• C. Revocable
• D. Irrevocable

Answer: (C)

A preneed contract that can be canceled by the purchaser anytime before the beneficiary dies is revocable. The defining feature here is the purchaser’s ongoing control to terminate the agreement and receive a refund, with the refund amount governed by state law. This contrasts with an irrevocable contract, where cancellation isn’t permitted and refunds are restricted or not available. Terms like contingent or optional don’t capture this rights-and-refund mechanism as clearly; those describe different kinds of conditions or choices, not the legal ability to cancel and recover the money. The core idea is the buyer’s ongoing authority to terminate and obtain a state‑regulated refund, which is the hallmark of a revocable preneed arrangement.