text: If the life insurance named a beneficiary, then the policy is a contract between the insured and the insurer and the bank is not allowed by law to intervene in that and therefore they are not entitled to the money.\n\nIf the money was left to an estate, then the bank could make a claim against the estate and get some money for the car loan that way.  Once the estate's bills are paid off, then the remaining money can be divided among the heirs.\n\nThe bank itself may have purchased its own policy on the car with themselves as beneficiary.  This is called BOLI or bank owned life insurance.  It is very common.\n\nJust the same the way the bank can't get the life insurance if they are not the beneficiary, you can't get 'reimbursed' for the funeral expenses if you are not named the beneficiary.\n\nOnly the named beneficiary can decide IF they want to pay the funeral expenses.  They are certainly not required to.