What are some common uses for life insurance proceeds?

Life insurance proceeds are typically intended to provide financial support to the beneficiaries of the insured after their death. This support often focuses on covering essential financial obligations and ensuring the well-being of loved ones.

Using life insurance proceeds for mortgage payments helps ensure that the family can maintain their home without the financial burden of mortgage payments after the loss of the primary breadwinner. This provision is crucial for providing stability during a difficult time. Similarly, using the proceeds for children's education reflects the policyholder's intention to secure their children's future and ensure that they can pursue their educational goals without financial strain.

Both of these uses emphasize the role of life insurance in providing financial security and covering critical expenses that directly affect the everyday lives and future prospects of the beneficiaries. Therefore, the choice that focuses on mortgage payments and children’s education aligns perfectly with the primary purpose of life insurance, which is to shield loved ones from financial hardship following the insured's passing.