A funeral insurance in kind, then you buy a package of funeral . You indicate in advance what the funeral or cremation should look like, and that is assured. If it appears when arranging the funeral that there are additional things, then they still have to be paid separately. If nothing is added, the last steps is arranged without payment of the next of kin. Many people like that idea, but this not work for the indian comunity.

Funeral insurance in cash simply pays out the agreed amount when the insured person dies. The next of kin can use that money to pay for the funeral. If the funeral or cremation costs more than the amount paid, they have to pay extra. If the costs are lower than the amount that was insured, money will remain. The latter will never occur with a kind insurance.

Another difference is free choice.
With in-kind insurance you often have to have the funeral arranged by a funeral director from a list provided by the insurer. Is it just not in the area? Then someone else may also do it, but then there is no guarantee that all agreed services are covered. An additional payment may still be required, even if not more is done than agreed.

With an insurance in money, the next of kin have complete freedom in the choice of where they have the funeral take place.