$255 would not pay for much of a funeral. It is an archaic benefit that mostly just confuses people. Even the poorest could afford a tiny $5k term life policy, please!
My guess is that it costs more than $255 to decide who gets the $255. That only goes to spouses and some dependents. And how much does that matter toward burial these days?
Not all of the poorest are insurable. I know of one individual who is dirt poor and has Hepatitis C.....near death's door......uninsurable for sure. His wife has no idea how she will bury him.