Pay off a Mortgage

If survivors so desire they can use a life insurance lump-sum payment to retire the mortgage on the home so the family can continue to live there free of mortgage payments. This decision may be made because the family feels it is best not to uproot the children from their environment or because the housing market is down currently and the home could probably bring much more when the market improves, thereby retaining the home's equity.

Another option is to put the life insurance funds to work earning interest and use only the interest and money from another source, or use both the interest and principal, for the monthly mortgage payments. Life insurance can meet a family's exact needs because of its flexibility.