What is the main purpose of death benefits in life insurance?

The main purpose of death benefits in life insurance is to provide financial support to beneficiaries. This benefit is designed to ensure that loved ones are provided for after the policyholder's death, helping to replace lost income and cover living expenses, thereby maintaining their standard of living.

While funeral costs, debts, and cash value generation may be factors related to life insurance policies, they are not the primary purpose of the death benefit itself. The death benefit is intended to offer a safety net to beneficiaries, ensuring their financial security in the absence of the policyholder's income. This support is crucial, as it can help cover various expenses, including day-to-day living costs, education for children, and even long-term financial needs, ensuring that the policyholder's loved ones can remain stable during a difficult time.