Does Life Insurance Pay Medical Bills? 
The great thing about life insurance is that the beneficiary receives the money proceeds tax free and can spend them on anything they wish including medical bills . If you purchase a cash value life insurance plan such as whole life insurance or universal life insurance , you can borrow from your cash value tax free and use the money for medical bills or anything else you desire . You may also purchase a rider on most all types of life insurance plans that can give you proceeds to be used in case of a critical illness and that money can also be used for mounting medical bills . So , the simple answer to your question would be yes , you can use life insurance to pay medical bills if you so desire . 