What Can Life Insurance Money Be Used For? 
Whether you are referring to borrowing from the cash value of a permanent life insurance policy , or spending the death benefit left to you as beneficiary on a policy of someone who passed , the life insurance money is yours to spend as you see fit . If someone is taking out a lie insurance policy and wants the death benefit to be spent in a certain way , it is a good idea to set up a trust outlining those conditions , and then make the trust as the beneficiary of the policy . 