The essential purpose of life insurance is to provide financial protection for your loved ones in the event of your death or disability. This can help to cover expenses such as funeral costs, outstanding debts, and lost income. Life insurance can also be used to provide a financial legacy for your loved ones.
Option A is incorrect because life insurance is not primarily a tax break. While there are some tax advantages to owning life insurance, this is not the primary reason for purchasing it.
Option B is incorrect because life insurance is not primarily an investment. While there are some investment features associated with some life insurance policies, this is not the primary reason for purchasing it.
Option C is the correct answer. Life insurance is protection for loss of economic value of human life in the event of death or disability. This can help to cover expenses such as funeral costs, outstanding debts, and lost income. Life insurance can also be used to provide a financial legacy for your loved ones.
Option D is incorrect because life insurance does not necessarily lead to wealth accumulation. While some life insurance policies may have investment features, this is not the primary purpose of life insurance.