What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial protection to beneficiaries upon the insured's death. This means that when the policyholder passes away, the life insurance policy pays out a predetermined sum of money to their designated beneficiaries. This benefit can help cover living expenses, pay off debts, and ensure that loved ones are financially secure during a difficult time.

Life insurance is structured specifically to offer a safety net for families and dependents, allowing them to maintain their standard of living in the event of the loss of the primary income earner. This aspect of life insurance underscores its role as a financial tool aimed at protecting the interests and financial well-being of a policyholder's loved ones.

While life insurance can have features that allow for savings accumulation or can be part of investment strategies, such aspects are secondary to its primary function of providing a death benefit. Other options presented in the question focus on limited purposes that do not encompass the broader protective role that life insurance serves for the beneficiaries.