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, their beneficiaries receive a death benefit payout, which can help them cover expenses such as mortgage payments, living costs, and other financial obligations. This aspect is crucial for ensuring that loved ones are not left in a precarious financial situation after the loss of the insured.

While other options touch on aspects of life insurance, they do not encapsulate its main function. Accumulating cash value and covering funeral expenses can be additional benefits associated with specific types of life insurance policies, but they do not define the primary objective of life insurance. Life insurance fundamentally serves to provide a safety net for the policyholder’s beneficiaries, making that the central theme of its purpose.