Sorry about your dad cj.
DH and I are 'older' parents and quite a few relatives and friends have died since dd was born. I have taken her to every funeral from when she was less than a year old. We have been very open and truthful with her about deaths. She didn't understand death until dh's elderly cat died when dd was getting on for 4. Before that, she understood that funerals were occasions where people were sad and were quiet in church. Once the emotional atmosphere was quite overwhelming and dd started crying which opened the gates for many other people to start crying. Quite a few told me afterwards how good it was that they had been able to break down in the church - too many stiff upper lips in my family.
After a funeral there is usually a get together of some sort, and dd has a lovely time running around, chatting to people. It reminds them that there is stiil things in life to be joyful about, a new generation, and brings all sorts of memories back about people's own childhoods etc. I've always found dd to be very welcome at funerals.
A couple of times, if the ceremony is going to be very long, a separate room has been set aside for smaller children (dd never wants to go in it).
Last year a much loved aunt died of a horribly debilitating illness (bit like motor neurone). DD, by now a fairly seasoned funeral attendee (sadly) at 7yo, was fabulous and brought a great deal of pleasure to many of the older people there afterwards, being very attentive, bringing them food and drinks and looking after them.
She is not scared of dieing (sp?). She remembers those who are now dead with love and affection and a certain sadness, but also is happy that she was able to throw some petals in the grave, or a handful of earth - it is a form of closure for her which she sees in some way as her giving them something and helping them on their way.