Creating a hierarchy in lets say a small town, were people who pay in can have a funeral early/better date/better priest while people who dont pay get a wednesday mid work and no one can attend so the family has to say goodbye to their loved one without people creates the kind of environment where participating is not optional.
That is the kind of situation the funeral thing was highlighting, not the provision of a service, but the creation of a coercive incentive for social hierarchy and emotional support around a very difficult moment.
Its the same reason predatory loans are predatory, not because loans are bad but because you find people at their lowest and provide a service where they are incentivised to make reckless financial choices
