Final answer:
The incorrect statement regarding survivor financial needs is that the term dependency period refers to a 20-year period dependent on Social Security, which is not precise as this period varies.
Step-by-step explanation:
The statement regarding survivor financial needs that is incorrect is: A) The term dependency period refers to the 20-year period immediately following the insured's death during which the widowed spouse must depend on Social Security. The dependency period does not have a fixed duration of 20 years and is not solely dependent on Social Security. Instead, it is the time during which dependents rely on the survivor benefits from Social Security after the insured's death, which can vary in length.
Contrarily, statement B) A final expense fund addresses a deceased breadwinner's last illness and funeral costs, death taxes, outstanding debts, and more. This is correct as the final expense fund is designed to cover these costs after the death of the income earner. Statement C) A housing fund addresses a family's rental or home mortgage needs, which is accurate since a housing fund helps survivors maintain their living situation. Lastly, D) The period for which there are no Social Security benefits for the surviving spouse is known as the blackout period. The blackout period is a factually correct term describing the time when survivor benefits are not paid to a young widow or widower until the children reach a certain age or the surviving spouse reaches age 60.