What is one of the primary purposes of life insurance?

One of the primary purposes of life insurance is to replace lost income due to the death of the insured. Life insurance provides financial protection to the beneficiaries by ensuring that they receive a death benefit when the policyholder passes away. This benefit helps to maintain the standard of living for the insured's dependents and can cover everyday expenses, debts, and other financial obligations that may arise following the insured's death.

The focus of life insurance is to offer a safety net that protects loved ones from the financial impact of losing a breadwinner, making it a vital tool for financial planning. While other options, such as providing income during retirement or covering healthcare costs, have their own significance, they do not directly address the primary aim of life insurance which is to provide immediate financial support following the death of the insured. Additionally, accumulating savings for future investments is typically associated with other financial products rather than the primary function of life insurance.