Which of the following is least likely to be considered a legitimate need paid by insurance proceeds?

Which of the following is least likely to be considered a legitimate need paid by insurance proceeds?

• A. Vacation travel expenses
• B. Travel expenses for family to come to the funeral
• C. Debt cancellation
• D. Day care

Answer: (A)

The least likely to be considered a legitimate need paid by insurance proceeds is vacation travel expenses. Life insurance is primarily designed to provide financial support for essential needs that arise after the death of the insured individual. These needs typically include expenses related to immediate family obligations, such as ensuring that dependents are cared for, settling debts, covering funeral costs, and maintaining the household. Vacation travel expenses do not fit this definition, as they are discretionary and not critical to the financial stability or immediate needs of the deceased’s family. In contrast, travel expenses for family to attend the funeral, debt cancellation, and day care costs are all considerable obligations that arise from the loss of a loved one and would be prioritized in the context of insurance proceeds. Such expenses help families cope with the immediate aftermath of a death, ensuring stability and support during a difficult time. Therefore, vacation travel expenses stand out as an option that does not align with the intended purpose of life insurance benefits.

The least likely to be considered a legitimate need paid by insurance proceeds is vacation travel expenses. Life insurance is primarily designed to provide financial support for essential needs that arise after the death of the insured individual. These needs typically include expenses related to immediate family obligations, such as ensuring that dependents are cared for, settling debts, covering funeral costs, and maintaining the household.

Vacation travel expenses do not fit this definition, as they are discretionary and not critical to the financial stability or immediate needs of the deceased’s family. In contrast, travel expenses for family to attend the funeral, debt cancellation, and day care costs are all considerable obligations that arise from the loss of a loved one and would be prioritized in the context of insurance proceeds. Such expenses help families cope with the immediate aftermath of a death, ensuring stability and support during a difficult time. Therefore, vacation travel expenses stand out as an option that does not align with the intended purpose of life insurance benefits.