New York Insurance Exam Practice Question
What is the primary purpose of life insurance?
Correct Answer: A
Rationale: Life insurance primarily aims to provide financial support to beneficiaries upon the insured's death, ensuring their financial stability during a challenging time.
Option B, while some policies can have cash value components, is not the main purpose of life insurance. Option C focuses on medical expenses, which are typically covered by health insurance, not life insurance. Lastly, option D misrepresents life insurance, as it is not designed to function as a tax-free savings account. Each of these alternatives diverges from the fundamental role of life insurance in protecting loved ones financially after the policyholder's passing.
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