What is "life insurance" intended to provide?

Life insurance is fundamentally designed to provide a death benefit to beneficiaries upon the death of the insured individual. This death benefit is intended to offer financial support to the dependents or chosen beneficiaries during a time of loss and grief. It serves as a means of replacing the financial contributions the insured would have provided, helping to cover expenses such as funeral costs, outstanding debts, and ongoing living expenses.

While retirement plans, accidental death and dismemberment coverage, and critical illness benefits are important components of financial planning, they do not encapsulate the primary role of life insurance, which focuses solely on providing a financial payout at the insured’s death. This is particularly vital for families who rely on the deceased's income, thereby ensuring that their financial stability is maintained.