Most people choose a trusted family member as their beneficiary, but if your spouse has passed away and you have no close relatives, it may make more sense to name your funeral home. Naming your preferred funeral home as beneficiary means that they'll receive any payout from your life insurance policy after your death, instead of an individual. You can also choose a secondary beneficiary for any money that remains. The funeral home would receive the payout first when you die to cover funeral costs, and the rest would go to your secondary beneficiary. You can usually arrange this ahead of time with your funeral home, but keep in mind that this is not an option for every facility. Some funeral homes prefer upfront payment and won't accept other arrangements. Learn more about choosing a beneficiary.