That's a regional thing, they don't do it around my area, instead they just have collections, popular, big Baht, no one, unliked, no money.
Strange, not 10 km from me, they had the funeral scheme, guy running it did a runner with the money a few years ago.
We have a village banking thing, that covers some of the costs of funerals, but wife had 10.000 BHT in it, wanted the money for something, counldn't get it for months.