Which statement best describes the primary function of a life insurance policy?

The primary function of a life insurance policy is to offer financial support to dependents after the insured dies. This is fundamental to the purpose of life insurance, which is designed to provide a death benefit to beneficiaries. This benefit can cover various expenses, such as mortgage payments, medical bills, education costs, and daily living expenses, ensuring that the financial burden does not fall on the dependents during a difficult emotional time.

Life insurance serves as a safety net for those left behind, allowing them to maintain their standard of living and to manage ongoing financial obligations that would otherwise be challenging to handle in the absence of the insured's income. By purchasing a life insurance policy, an individual ensures that their loved ones will be financially protected and supported after their passing.

Other options, while related to financial topics, do not capture the core function of life insurance as effectively. For instance, health care coverage focuses on medical expenses during life, while a savings account emphasizes accumulating funds rather than providing a death benefit. The notion of life insurance as a tax evasion tool is a misinterpretation of its purpose, as it is not designed for that function and can expose individuals to legal issues if misused.