Why do funeral premiums for family members seem more expensive?

Insurers will always charge you more for a policy you take out on another life than for a policy you take out on your own life. The reason is to do with the risk of fraud.

More people attempt to commit fraud by claiming on another’s life (rather than, say, faking their own death). Insurers have to protect themselves from this kind of fraud, or we wouldn’t be able to offer funeral insurance at all because it would be too expensive. So we have to make sure there’s a balance between the cost of the insurance policy for you, and the risk of someone only taking out the policy as a get-rich-quick scam.