They may also be reflecting fears and anxiety from the adults who are also involved in the family. Many children seem to be quite serious and thoughtful when they find out about this issue. This is probably more an avoidance issue for the adult who is giving the news. Again, this is more of an issue of the adults' feelings. While there are some circumstances that warrant thinking about parceling the truth out over time, such as the person who died being the driver in a drunk driving murder of others, portions of the truth are psychologically better in the long run that complete fabrications for both the child and the fabricator.
Children generally do better if given accurate information and the specifics that they ask for.
Children should be encouraged to attend funerals and be involved in grieving. Tthe best way to do this is to ask them if they want to go and make arrangements for a somewhat uninvolved adult to be with children so that if they need to leave a funeral service, the adult with them is not centrally involved in the service and can leave with the child. Use words the child understands. Avoid jargon or long explanations. Short sentences are also better.