What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial protection to beneficiaries after the insured's death. This ensures that loved ones are not left in a financially vulnerable position when the insured passes away. The death benefit from a life insurance policy serves as a financial safety net, covering living expenses, funeral costs, and other financial obligations, thereby allowing beneficiaries to maintain their standard of living during a challenging time.

While other options touch on valid financial concerns, such as saving for retirement, funding children’s education, or paying off debts, they do not encapsulate the fundamental goal of life insurance, which is to safeguard the economic well-being of those left behind. Life insurance is not primarily intended as a savings tool or a means to fund specific future expenses; its core function is to provide support and security for beneficiaries in the event of the policyholder's untimely death.