What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial protection to beneficiaries upon the death of the insured. This means that when the insured individual passes away, the life insurance policy pays a predetermined amount, known as the death benefit, to the designated beneficiaries. This financial support is crucial, especially for dependents, as it helps cover ongoing expenses, debts, or any financial obligations that the insured may have left behind.

While some life insurance policies may offer features that allow for cash value accumulation or investment options, the core function remains focused on offering a safety net to loved ones in the event of an untimely death. This assurance helps ensure that family members can maintain their standard of living and fulfill financial commitments even in the absence of the policyholder.

Other options may suggest various financial benefits or uses, but they do not capture the essential purpose of life insurance, which revolves around providing security and support to beneficiaries during a challenging time.