Is it smart to prepay for a funeral?

After we buried my mother in August, my father and I were approached by the funeral home we used (wonderful, caring, empathetic people) encouraging us to do a pre-paid funeral plan for dad. We have life insurance on him and always assumed we would use that. The pre-paid funeral is apparently an insurance policy, too. It locks in at today's price, but in essence makes the funeral home the beneficiary. We'd pay all at once or over years. Is this a good idea? I like that it locks in today's prices for something we will need, but worry that it sounds too good to be true. We wouldn't think of using any other funeral home, so commitment isn't the problem.