What is typically the main purpose of life insurance?

The main purpose of life insurance is to provide financial support to beneficiaries after the policyholder’s death. This financial support can help cover immediate expenses such as funeral costs, outstanding debts, and ongoing living expenses for dependents who may rely on the policyholder's income. The policy ensures that loved ones are financially protected and can maintain their standard of living in the event of the policyholder's passing.

While accumulating savings, obtaining tax benefits, and reducing estate taxes are aspects that can be associated with certain types of life insurance products or financial strategies, they do not represent the primary function of life insurance itself. The essential role of life insurance is fundamentally to provide a safety net for those left behind, ensuring they have financial resources during a challenging time.