Who has first claim to life insurance money? Funeral expenses or credit card company?

If the life insurance policy named a beneficiary, then the beneficiary takes the proceeds directly, (ie. they do not become part of the probate estate) and therefore the beneficiary is not responsible for any debts of the estate.

If no beneficiary was named or the beneficiary pre-deceased the insured (and there was no contingent beneficiary), then the proceeds would be payable to the estate and subject to creditor claims.

As for priority of creditor claims, funeral expenses are to be paid before unsecured (credit card) debt.