Funeral insurance is a type of policy designed to cover the costs associated with a person's funeral and burial expenses. This insurance helps alleviate the financial burden on family members during a difficult time by ensuring that funds are available to pay for services such as caskets, burial plots, and other related expenses. Typically, individuals purchase funeral insurance while they are still alive, paying regular premiums. Upon the policyholder's death, the insurance company pays out a predetermined amount to cover the funeral costs, allowing families to focus on grieving rather than worrying about finances.