Some life insurance policies have a face value with no growth, while pre-need insurance and bank trusts have a face value and continuous growth. Therefore, your life insurance policies that have no growth will need to be attached to a new policy that has growth (your pre-need counselor will further explain all of this.) Furthermore, some policies require that you pay every month, quarter, and year until the time of death (these are known as whole life policies).
Pre-need insurance usually has the following terms:
Single pay is when the funeral is paid in full so it will have enough growth to keep up with tomorrow's costs.
Payment installments are for three, five, seven, or ten years with growth that keeps up with costs. However, most require a minimum of two years payment before death occurs to pay face value.
When using existing insurance, whether it has a growth option or not, the policy is generally attached to a bank trust or pre-need insurance.
Under these circumstances, your funeral bill is paid.
However, when using a bank trust, the funeral amount will only be paid when the face value of the trust account has reached the face value of the contract amount.