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does my beneficiary have to pay funeral expenses this question probably comes about because some insurance policies are set up to pay funeral expenses when the insurer dies these types of policies are usually whole life policies through some type of funeral home so the beneficiary of these policies is the funeral home so when the insured dies the funeral home gets the money and they pay for the burial expenses or the funeral expenses insurance like whole life insurance term insurance universal life insurance that is purchased not through a funeral home youll have the opportunity to name your own beneficiary so you could name a child you can name your spouse you can name a charity you can name your estate any one of those entities that you name will receive a check directly from the insurance company when you die and from there theres no stipulation as to what they have to do with the money unless the moneys going into a trust where the money going into a trust would obviously have t