What is a primary goal of life insurance policies?

The primary goal of life insurance policies is to provide financial protection to beneficiaries in the event of the policyholder's death or to offer support in the case of a disability. This security is crucial as it ensures that loved ones can maintain their standard of living and cover essential expenses, such as mortgage payments, education costs, and daily living expenses, after the loss of income from the deceased or disabled policyholder.

While generating investment income, offering tax advantages, and encouraging savings can be associated aspects of life insurance products or related financial planning, they are not the main purpose. Life insurance primarily serves to cover the financial risks associated with untimely death and to provide peace of mind to policyholders about their family’s financial future.