There are a few different places around the world that have hanging coffins. China, Indonesia and the Philippines.
Sagada is in the Mountain Province of the Island of Luzon in the Philippines, and is located 275 km or about 171 miles from Manila. The one thing Sagada is famous for is its hanging coffins. This was a traditional way of burying people. Not anyone is qualified to be buried this way; one had to, among other things, be married and have grandchildren.
These coffins are carved by the elderly before they die; if they are too ill or weak their son or other close relative will do it for them. This ritual involves pushing the bodies into the tight spaces of the coffins, and often bones are cracked and broken as the process is completed.
The Segada people prefer to be buried in the cliffs than to be buried in the ground and have been doing this for more than 2,000 years.
References:- Wikipedia:- Hanging Coffins - Wikipedia:- Mountain Province