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.