Many funeral homes offer financing, either at the time of the funeral or through prepaid arrangements. However, both have problems. Prepaid funeral arrangements present difficulties when, for example, the person moves away from the city where the funeral home is located or the funeral home goes out of business. Also, the deceased’s family may not be aware of what has been arranged. In the worst-case scenario, families may end up paying twice for particular features, or not receive services that have been paid for. At the very least, the family is locked into one funeral home, whether it is the favored or best choice. On the other hand, seeking a loan from a funeral home at the time of the funeral can be dicey, especially if you have bad credit. You simply have no assurance that you will be approved for a loan. You also may not find the terms convenient even if you are approved. At the very least, you should comparison-shop any funeral home loan against other sources of bad credit loans, such as the four lending services we review here. Many funeral homes offer an insurance-related alternative. In this scenario, the funeral home arranges a small life insurance policy. You pay the insurance premiums and name the funeral director as the beneficiary. You can choose from different policy alternatives: