Which one of the following is NOT a use of life insurance proceeds by beneficiaries?

Life insurance proceeds are primarily designed to provide financial support to beneficiaries upon the death of the insured. They typically serve several important purposes, such as debt repayment, income replacement, and funding education expenses, all aimed at ensuring that the beneficiaries can maintain financial stability after the loss of the insured.

Debt repayment refers to using life insurance funds to settle any outstanding financial obligations, ensuring that the deceased's debts do not burden the beneficiaries.

Income replacement is a fundamental function of life insurance; the proceeds can help cover living expenses and maintain the lifestyle of the beneficiaries that may be impacted by the loss of the insured's income.

Education expenses can also be funded with life insurance proceeds, providing financial support for beneficiaries who may wish to pursue higher education or vocational training.

However, health care costs for the insured typically would not be covered by life insurance proceeds since these costs are generally incurred while the individual is still alive. Life insurance is intended to provide financial support to beneficiaries after the insured’s death, not to cover the medical expenses of the insured during their lifetime. Thus, this option stands out as not being a typical use of life insurance proceeds.