Which of the following best describes the purpose of life insurance?

Life insurance is primarily designed to provide financial support to beneficiaries upon the insured's death. This aspect of life insurance focuses on safeguarding the financial stability of loved ones after the policyholder's passing. The death benefit, which is the amount paid out to beneficiaries, can help cover everyday living expenses, debts, and any other financial obligations, ensuring that the insured's family does not face financial hardship during a difficult time.

While life insurance can also potentially contribute to funeral expenses, its broader purpose is not limited to just that. It serves to offer a comprehensive financial safety net for the policies' beneficiaries, helping them maintain their lifestyle and manage their financial responsibilities in the face of loss.