What is the primary purpose of life insurance?
A. To provide financial support to beneficiaries upon the insured's death Correct
B. To serve as an investment vehicle for retirement
C. To cover medical expenses during hospitalization
D. To provide a tax-free savings account
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.
