I have done this twice. The first time a friend asked me to make 2 identical lap quilts so that when they took one home from the nursing home to be washed there was the other one there since mom loved her quilt and did not want to be without it. When she died one of the two quilts was used on her casket. After the funeral her two daughters each had one quilt a piece to remember mom.
The second one I did was for my beloved Aunt Mary. She had me make her a queen size quilt that each block was a Bible theme. When she died we used this quilt on her casket. She would have loved this. I now have the quilt at home and DH sleeps under it as I type.
Needless to say I think this is a great thing to do. I only hope when my times comes my family will choose to do the same thing. They have a lot to choose from.
I made these quilts for use while alive knowing they may be used this way in death. Now my friend and I both have warm memories every day.