The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and other end of life expenses.

Question

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The primary purpose of life insurance is to provide financial support for the dependents of the insured in case of their death. This can include replacing lost income, paying for funeral expenses, paying off outstanding debts, and providing funding for future expenses such as education for children. However, life insurance can also be used for other purposes, such as estate planning or business succession.

The Primary Purpose of Life Insurance Is to Replace Lost