Every funeral home has different payment policies.
Many independently-owned funeral homes will accept an assignment of the proceeds of an insurance policy for the payment of the funeral. The way this works is to bring the policy into the funeral home at the time of the arrangements conference. The funeral home will ask you to sign an assignment form assigning the amount of the funeral be paid from the proceeds of the policy. Most funeral homes that do accept assignments will process the paper work for you. The funeral home may ask for these items to be paid for up front.