What requirement must be met for payment of proceeds in a funeral contract?

For payment of proceeds in a funeral contract, it is essential that proof of funeral expenses must be submitted within a designated time. This requirement ensures that the insurance company can verify that the funds are being used for the intended purpose, which is to cover the costs associated with the funeral and burial. By providing documentation of these expenses, the beneficiary demonstrates the legitimacy of the claim, allowing for the timely disbursement of funds.

This requirement is a standard practice in the industry and protects both the insurer and the insured. It helps prevent fraudulent claims and ensures that the funds are allocated appropriately in line with the terms of the contract. Beneficiaries must be mindful of any specified timelines for submission to avoid delays in processing the claim.

The other options do not align with standard practice. For example, the requirement for claiming proceeds is not strictly limited to a short timeframe (like one month), as this can vary by policy. Additionally, claims can typically be initiated by more than just the primary beneficiary, and most insurance companies allow claims to be submitted through various convenient methods, not solely in person at an office.