A coffin draped with the American flag is a powerful and sobering reminder of those who have served their country. This national honor is extended to military veterans, active service members and far less frequently to certain civilians, such as presidents and certain Congress members.

General Requirements

Generally speaking, all members of the United States Armed Services are eligible to receive military funeral honors---including the flag-covered casket---provided the service member fulfilled his or her military obligations in either active-duty or Selected Reserve service, or was discharged with any status "other than dishonorable."

Active Duty

When an active-duty serviceman dies---particularly if he was killed in action---he receives a military funeral with full honors, often followed by burial in a national cemetery. In these situations, the casket is usually covered with the flag as soon as it begins its journey home, where it remains until just before burial.

Selected Reserve

Should a Selected Reservist pass away, she is eligible for a military burial, complete with flag honors. Especially during times of conflict, there is little difference in how active-duty and Selected Reserve personnel are treated upon death.

Veterans

Veterans of all branches of the U.S. Armed Services also receive demonstrations of gratitude and acknowledgment of service, which, of course, includes flag honors. This practice applies only to veterans who left or were released from military service for any reason other than dishonorable discharge.

Presidents

When a U.S. president passes away, a state funeral provides the backdrop for paying homage to those elected to office, including former and sitting presidents, and even presidents-elect. In these cases, the flag-covered casket serves to acknowledge his service to the country as well as his role as commander-in-chief of America's armed forces.

The Folded Flag

Before lowering the casket into the ground, two honor guards fold the flag 13 times before presenting it to the next-of-kin as a symbol of the nation's gratitude. Each fold represents the many sacrifices the individual made in order to serve his country.

Source:

Military Funeral

Who is eligible for Military Funeral Honors?

More Information:

The Meaning of the Flag Draped Coffin