Funeral insurance covers the insured's funeral costs in the event of death. Since funerals can be very expensive, a funeral insurance policy will remove the financial burden from friends and families when a person dies. Unlike life insurance, funeral insurance pays for the insured's funeral and funeral service only and does not pay a lump sum to a beneficiary. Funeral insurance will typically pay for the casket, flowers and refreshments at a funeral. Some funeral insurance companies offer a substantial discount on the service if you have the funeral at one of their affiliate funeral service companies. One of the main differences between funeral insurance and other kinds of insurance policies is that funeral insurance is not risk based. Death is inevitable and taking out a funeral policy to cover your coffin or urn, flowers, refreshments and even the service will not only ensure that your funeral turns out the way you want it to, but also that a massive financial and organisational burden is removed from your family and loved ones.