Hmmm, that's a question I've never been asked. And I don't have a funeral policy. I had a family with 3 siblings that lost their grandmother, I refused their payment that week. Plus I took care of another relative the night of the wake for free. I also have a dcg whose parents lost their baby at 7 months; I refused payment for 2 weeks from them but then grandma bought dc all this stuff which was nice but I was trying to be nice to them.
Without a funeral policy in place, I'd have to go with the case by case idea. While I wouldn't think twice about extending payment credit for a close member of the family, I couldn't be as generous with everyone's cousins, aunts and uncles. Kwim?
If I close due to a death in my family, I'd still charge my weekly rates.