What is the ruling on life insurance that covers burial costs and leaves a sum for the family, especially if the company provides free insurance in case of death?

Commercial insurance is forbidden because it involves gharar (excessive uncertainty/risk) and consuming people's wealth unlawfully, whether it is life insurance or other types. The amount paid by the company to the heirs gratuitously is an end-of-service bonus, which is permissible to take and poses no problem. This does not justify engaging in forbidden insurance.