This kind of insurance is made available to people who have limited funds and need to arrange to have their funeral paid for. Typically this kind of coverage one buys in their later years when they do not have any other means to take care of their funeral and other related expenses. These policies have premiums based on the age, sex and health conditions typical for the older segment of the population. Unless someone is very unhealthy you can usually find a policy with affordable premiums.
An alternative to this kind of insurance would be some newer kinds of policies which do the same thing but you make only one payment. This way usually will work better for people who have put money in the bank to pay for their funeral. By using this alternative they can use some of the money they have in the bank and end up having similar values available when they die yet not have all their money tied up for that need. Another way of describing it is depending on your age if you have set aside $7,000 in a savings account to pay for your funeral, it may only take $5,000 to provide the same $7,000 in funeral costs.