This can happen where you know which funeral director you would like to use and would like to save your loved ones from arranging and paying for the service for you. It also means that you are paying for the service you like which may not be too far into the future. It would be normal that the funeral directors costs are fixed at that point in time, no matter when the death occurs. 3rd party cost (disbursements) would not be included in this pre-payment as these cannot be fixed.