What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial support to beneficiaries after the insured's death. This financial support can help cover various expenses that the deceased may have left behind, such as mortgages, education costs for children, and daily living expenses. Essentially, life insurance acts as a financial safety net, ensuring that loved ones are not burdened with financial hardship in the event of the policyholder's passing.

This focus on protecting the financial stability of beneficiaries underscores the essence of life insurance products, which are specifically designed for this purpose. The other options do not align with the fundamental goal of life insurance: investing in stock market opportunities is a separate financial activity, covering immediate medical expenses is typically the domain of health insurance, and benefiting the insurance company financially is an outcome of the business model but not the primary reason for individuals to purchase life insurance. Thus, providing for beneficiaries remains at the forefront of what life insurance is meant to accomplish.