If you are the beneficiary of a life insurance policy, you may use the proceeds (death benefit) from the life insurance in any way you choose.

You could spend the money on paying for the burial of the insured person. Or, save the money.

Many people use the death benefit to replace the income of the insured.

But it's really up to you as beneficiary to choose how you wish to use the money you receive from the payout on a life insurance policy.

Learn more about what life insurance pays for.