What is NOT a personal use for life insurance?

Life insurance is primarily designed to provide financial support to beneficiaries in the event of the policyholder's death. Personal uses of life insurance typically revolve around covering direct financial needs that arise from unexpected events, such as the passing of the insured.

A final expense fund, for example, is a common personal use of life insurance, as it helps cover funeral costs, medical expenses, and other related debts that might burden surviving family members. An emergency fund, although it can be funded through various means, can absolutely be addressed by life insurance by providing financial protection in a time of need. Similarly, a housing fund, which can involve paying off a mortgage or providing a living arrangement for dependents, aligns with how life insurance can be utilized to maintain financial stability after a loved one’s death.

In contrast, employee salary continuation plans are not a personal use of life insurance for an individual. These plans are typically employer-funded benefits that help support employees who are unable to work due to various reasons, such as illness or disability. Such plans are designed to assure continuity of income for employees rather than serving the personal insurance needs of individuals and their families. Therefore, the correct identification of this option highlights the distinction between personal uses of life insurance and benefits provided in a corporate or