How Is Life Insurance Used? 
Life insurance is used to pay for funeral and other final expenses ; to borrow from for college , wedding , new home , etc ; to provide cash to a business partner when the other partner dies so the surviving partner can buy the other share of the business ; to pay off a mortgage ; as collateral to get an SBA loan ; to pay off student loans ; to pass an inheritance to children or grandchildren ; to donate money to charity ; to provide for loved ones so they do n't have to move and take another job when the breadwinner dies , and many other uses . 