What is the primary purpose of life insurance?

The primary purpose of life insurance is to provide financial security to beneficiaries upon the insured's death. Life insurance is designed to ensure that when the policyholder passes away, their beneficiaries receive a death benefit that can be used to cover various expenses and maintain their standard of living. This financial support can help cover costs such as funeral expenses, debts, and ongoing living expenses for dependents, thereby preventing financial hardship during a difficult time.

While the other options suggest important financial goals—such as growing an investment portfolio, funding education, or covering medical expenses—they do not encapsulate the core function of life insurance, which is focused on offering a financial safety net for loved ones after the policyholder's death. The essence of life insurance lies in its role as a protective financial instrument rather than an investment or savings tool.