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 financial support ensures that family members or dependents can maintain their standard of living and meet financial obligations, such as mortgage payments, education costs, and daily living expenses, after the insured’s passing. Life insurance serves as a safety net, helping to secure the financial future of loved ones in the event of an unexpected loss.

While other options may reflect additional benefits or features associated with certain insurance products, they do not capture the core objective of life insurance. Medical expenses are more relevant to health insurance, investments for future income may pertain to other financial products, and accumulating savings for retirement typically involves different plans like annuities or retirement accounts, rather than life insurance itself. Therefore, the critical function of life insurance remains the provision of financial support to beneficiaries during a time of need.