What would be the primary focus of using life insurance proceeds for living expenses?

Using life insurance proceeds for living expenses primarily focuses on providing financial stability for dependents. When an individual passes away, their dependents – such as a spouse, children, or other family members – may suddenly find themselves in a challenging financial situation. Life insurance is designed to offer a safety net by ensuring that these individuals have the necessary funds to cover essential living expenses such as housing, food, and healthcare, thereby maintaining a level of financial security during what can be an emotionally taxing time.

This purpose contrasts sharply with the other options, which do not prioritize the immediate needs of dependents. Covering entertainment costs, purchasing luxurious items, or investing in real estate may not reflect the pressing financial responsibilities that arise after the loss of a family member. Those priorities can often be addressed later, while the immediate focus should be on ensuring that dependents can sustain their daily living without undue financial strain.