Each of the following is a personal use of life insurance proceeds EXCEPT

The correct choice highlights the distinction between personal uses of life insurance proceeds and those that are often associated with business purposes. Funding a buy-sell agreement typically serves as a mechanism for business continuity and ownership transfer among business partners upon the death of an owner. This purpose is inherently linked to a business arrangement rather than personal financial planning or personal financial needs.

In contrast, the other options reflect more personal financial situations. Providing funds for final expenses, such as medical bills or a funeral, is a common use of life insurance benefits that directly addresses the needs of surviving family members. Creating an immediate estate allows beneficiaries to secure financial stability quickly after the policyholder's death, which is also a personal financial consideration. Establishing an emergency fund implies setting aside resources for unexpected expenses, which is fundamentally a personal financial management strategy.

Thus, the nature of the buy-sell agreement distinctly categorizes it as a business-related use of life insurance, making it the exception in this context.