Questions: What is created after policy proceeds are obtained in a lump sum and then immediately invested? A. Viatical Settlement B. Lump Sum Fund C. Emergency Fund D. Estate

The answer is B. Lump Sum Fund

A viatical settlement involves selling a life insurance policy to a third party for a percentage of the death benefit. This is typically done by someone who is terminally ill and needs immediate funds. It is not related to investing policy proceeds in a lump sum.

When policy proceeds are obtained in a lump sum and then immediately invested, the resulting entity is referred to as a Lump Sum Fund. This is because the proceeds are received as a single payment and then invested to generate returns.

An emergency fund is a reserve of money set aside to cover unexpected expenses or financial emergencies. It is not specifically related to the immediate investment of lump sum policy proceeds.

An estate refers to all the money, property, and other assets owned by an individual at the time of their death. While policy proceeds can become part of an estate, the immediate investment of those proceeds would not be specifically termed an estate.