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In the old days, there was no insurance and the Chinese have this customs where each family pay a little money to the community fund (benevolent fund) and this fund will be used to help in the expenses of the funeral and the family.
At the funeral there is also a box to collect donations for the family. Now most of us do not need this but the old custom still carry on. Some family give the donation to the charity organization in the name of the deceased.