What is the primary purpose of life insurance?

Life insurance is fundamentally designed to protect individuals and their families from the financial impact of death. The primary purpose of life insurance is to provide financial support to beneficiaries upon the insured person's death. This financial support can help cover immediate expenses such as funeral costs, outstanding debts, and ongoing living expenses, thereby alleviating the economic burden that can arise from losing a primary income earner.

While the other options may touch on important aspects of financial planning, they do not encapsulate the core purpose of life insurance. Saving for retirement and investing in the stock market are related to wealth accumulation and financial growth rather than the primary life insurance function. Funding children's education, although extremely important, is a specific financial goal that can be addressed through various means, not just life insurance. The primary focus of life insurance is to ensure that loved ones are financially secure in the event of the policyholder's untimely death.