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The Different Ways to Use Life Insurance

A life insurance policy is worth more than just a check to your beneficiaries. Legally, your beneficiaries can spend the policy’s death benefit on whatever they want, but many people use it to replace the policyholder’s source of income in their daily lives.

If you’re having trouble imagining some ways your beneficiaries can use a death benefit, here's a list of 33 ways your loved ones can use your life insurance policy.

33 Ways to Use a Life Insurance Policy

  1. Paying funeral costs

  2. Making mortgage payments

  3. Paying off student loans

  4. Paying for medical bills

  5. Saving for your family’s future medical bills

  6. Setting up college funds for your children

  7. Long-term care for your spouse

  8. Starting a business

  9. Making a charitable donation

  10. Buying daily necessities

  11. Paying utilities

  12. Paying all other monthly bills

  13. Buying a car

  14. Creating an estate

  15. Making home repairs

  16. Remodeling your home

  17. Paying estate taxes

  18. Paying off credit card debt

  19. Buying a new home

  20. Setting up wedding funds for your children

  21. Saving money for your grandkids

  22. Retirement income for your spouse

  23. Equalizing your children’s inheritances

  24. Visiting family

  25. Taking a vacation

  26. Long-term care for your parents

  27. Going back to school

  28. Buying new computers

  29. Investing in the stock market

  30. Keeping your business running

  31. Giving to your church

  32. Adopting a child

  33. Maintaining your family’s overall standard of living

The Legacy You Want to Leave

Life insurance policies go beyond just leaving money to your loved ones, as shown by the list above. It helps you leave a legacy that will be remembered and appreciated for decades after you’re gone.

Find out more about the right policy for you with this guide to the different types of life insurance.

Learn More