What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial support to beneficiaries upon the death of the insured. This financial support ensures that dependents or loved ones can maintain their standard of living and meet their financial obligations, such as paying for a mortgage, funding children's education, or covering everyday living expenses after the insured has passed away. By design, life insurance policies are meant to offer peace of mind, knowing that loved ones will have financial resources in the event of an untimely death.

The other options, while they address financial needs, do not focus on the core objective of life insurance. For instance, accumulating wealth for retirement relates more to investment vehicles and strategies rather than the immediate financial support life insurance aims to provide upon the death of a policyholder. Covering medical expenses during the insured's life is typically associated with health insurance plans, not life insurance. Lastly, protecting against property loss pertains to property and casualty insurance, which is a separate category from life insurance designed to handle different types of risks.