Insurance provides a means to achieve which of the following?

Insurance primarily serves as a risk management tool, allowing individuals and businesses to transfer the financial burden of potential losses to an insurance company. When you purchase insurance, you pay a premium in exchange for the insurer's commitment to cover certain types of losses that you might experience, such as damage to property, medical expenses, or loss of income due to unforeseen events.

The key concept here is the "transfer of loss." Instead of bearing the entire financial impact of an unfortunate event, the risk is shared and managed by the insurance company. This transfer helps individuals feel more secure, knowing that they have financial protection in place should an adverse event occur. Hence, the correct answer, which reflects this principle, highlights how insurance enables individuals and businesses to mitigate the financial impact of risks.

The options concerning covering all expenses, increasing savings, and enhancing investments misrepresent the purpose of insurance. While insurance can help manage specific financial burdens, it does not cover every possible expense nor can it be relied upon as a savings or investment vehicle. Insurance is not designed to increase wealth but rather to protect against loss.