Kayla needs funding for her child's daycare after her husband's death. What would be the best source of funding?

Life insurance proceeds are the most suitable source of funding for Kayla to cover her child's daycare expenses following her husband's death. In the event of the policyholder's passing, life insurance policies provide a lump sum payment to the designated beneficiaries, which can offer immediate financial support during a challenging time. This benefit can be specifically allocated to necessary expenses, such as daycare costs, ensuring that the financial needs of her child are met despite the loss of household income.

While estate conservation, state education waivers, and viatical settlements may offer some forms of financial assistance, they do not directly address Kayla's immediate need for funds to support her child's daycare. Estate conservation generally pertains to managing and transferring wealth instead of providing immediate liquid funds. State education waivers relate to educational benefits that might not apply directly to daycare funding. Viatical settlements involve selling a life insurance policy before death, often for terminally ill policyholders, which wouldn't apply to Kayla’s situation as she is not looking to cash in a policy prematurely. Thus, life insurance proceeds specifically provide the financial solution required in this context.