What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial support to beneficiaries upon the death of the insured. This fundamental function is essential because it ensures that loved ones are financially protected in the event of the policyholder's death. The benefits paid out can help cover immediate needs such as funeral expenses, outstanding debts, and ongoing living expenses, alleviating financial stress during a difficult time.

While life insurance can sometimes have cash value components, which may be used for savings or investment, these features are secondary to its main function. Options that suggest life insurance serves primarily as an investment vehicle, covers medical expenses, or accumulates savings overlook the core intent of life insurance: to offer financial security to beneficiaries in case of the policyholder's untimely passing.