What is the primary purpose of a life insurance policy?

The primary purpose of a life insurance policy is to provide a financial safety net for the beneficiaries upon the death of the insured individual. When the insured passes away, the policy pays out a specified death benefit to the beneficiaries named in the policy. This death benefit can help cover living expenses, funeral costs, and other financial obligations, thereby providing peace of mind and financial support during a difficult time.

The alternative options do not reflect the main function of life insurance. Health coverage is provided through health insurance policies, not life insurance. While some life insurance products can include features for accumulating savings or cash value, this is not the primary purpose of life insurance; the main intention is to offer financial protection in case of death. Lastly, long-term care expenses are typically covered by long-term care insurance, and life insurance is not designed specifically for that purpose. Overall, life insurance focuses on ensuring financial security for beneficiaries after the death of the policyholder.