Apparently, a source revealed that the 25-year-old has dished out the cash because she fears that her spiralling lifestyle may lead to an early grave.
"Paying for a funeral is a sensible thing to do—but not when you're only 25!" News of the World quoted the source, as saying.
"It's a case of too much, too soon with Britney.
"Not a week goes by without something strange happening to her now. She's doing herself no favours," the source added.
Earlier this month, the singer's ex husband Kevin Federine was given the full custody of their kids Sean Preston, two, and one-year-old Jayden James.