What is the primary purpose of life insurance?

The primary purpose of life insurance is to protect against financial loss resulting from an unexpected death. This type of insurance offers a death benefit to designated beneficiaries, ensuring that they receive financial support in the event of the policyholder's passing. This can help cover various expenses such as funeral costs, outstanding debts, and the daily living expenses of dependents, thereby providing financial security during a challenging time.

While there are other benefits associated with life insurance, such as retirement income, savings accumulation, or potential tax advantages, these do not represent the main objective. The fundamental role of life insurance is to serve as a safety net for loved ones, ensuring they are not left in a vulnerable financial position due to the premature loss of an income provider.