Final answer:
Insurance proceeds paid in lump-sum can be used for various purposes such as covering medical expenses, repairing or replacing damaged or stolen property, or providing financial support for the family in the event of the insured individual's death.
Step-by-step explanation:
Insurance proceeds paid in lump-sum can be needed for a variety of purposes.
In the case of health insurance, the proceeds can be used to cover medical expenses such as hospital bills, surgeries, or medication costs.
With car insurance, the lump-sum payment can be used to repair or replace a damaged or stolen vehicle.
For house or renter's insurance, the proceeds can be used to replace stolen or damaged possessions, or to repair a dwelling after a fire or other disasters.
Lastly, in the case of life insurance, the lump-sum payment can provide financial support for the family of the insured individual in the event of their death.