"People can also buy this privately, as funerals can be very costly, but only old people do."

Not at all. I am 48 but I am a cancer survivor so i did it because a funeral in Hungary can be very, very expensive. I have 4 children but i do not want to make them a burden and ruin their life with my death. So if any, my funeral costs are actually prepaid in full and I do have a place in the cemetery paid ahead in time.

My mother died last year and I had 3 months to work as a horse cover the costs...

Introduction to Funeral & Burial Insurance | Trusted Choice
https://www.trustedchoice.com/...insurance/coverage.../death...
Many people buy life insurance simply to cover their burial and funeral expenses. Did you know there are a variety of burial insurance policies available that are quite different from each other? Before you buy one of these funeral insurance policies, make sure you’re getting what you really need.

The different types of funeral insurance policies include:

Preneed Funeral Insurance: This is directly or indirectly linked to a funeral service provider. It has installment payment plans which can be either 1, 3 5, 7, or 10 years and remains in effect for your entire life after the premiums are paid. This type of policy can be either a term insurance policy or a permanent policy.

Final Expense Insurance: This type of policy is not linked to a funeral service provider and tends to be cheaper than preneed funeral insurance. It can consist of either a term or a permanent life insurance policy.

Burial Insurance: This type of policy is usually a term life insurance policy with lower death benefits such as $5,000 or $10,000 dollars. The death benefits are paid to a named beneficiary who can use the death benefits in any manner.

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Note added at 42 mins (2016-06-24 21:48:52 GMT)
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I do have a first type. I have an envelope in my closet with my last will, and with my insurance policy and the contact number. If anything happany, my children just give a call, present the certificate of death and the policy with all bank slips that all instalments are paid. So I am very happy I did it because I learned from my mother's mistake. And the funeral service industry is very tricky: so if you paid it in full in advance, they cannot raise the costs in any way.

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Note added at 6 days (2016-07-01 19:14:33 GMT) Post-grading
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Obrigada