To qualify for Supplemental Security Income (SSA) and Medicaid benefits, applicants purchasing preneed funerals must enter into which of the following preneed contracts?

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

Answer: (D)

The key idea is protecting the funds set aside for a funeral from being counted as a required asset for SSI and Medicaid. An irrevocable preneed contract accomplishes this because it designates the money strictly for funeral expenses and cannot be canceled or withdrawn by the owner. That non-revocable commitment means the funds are not considered readily available resources for eligibility purposes. In contrast, a revocable contract can be altered or canceled and the money could be taken back or redirected, so it would still count as an available asset. Flexible or contingent contracts don’t provide the same protection because they aren’t binding in the same non-retractable way, leaving the funds vulnerable to change. So, irrevocable is the type that best supports eligibility.