What is the purpose of a death benefit in a life insurance policy?

The purpose of a death benefit in a life insurance policy is to offer financial support to the beneficiaries after the insured's death. This benefit is designed to help the beneficiaries cover immediate expenses such as funeral costs, outstanding debts, and ongoing living expenses, thereby alleviating financial stress during a difficult time. The death benefit serves as a financial safety net, ensuring that loved ones are provided for even in the absence of the policyholder's income.

The other options do not accurately reflect the primary function of a death benefit in life insurance. While cash value, medical expenses, and premium coverage are important considerations in some life insurance policies, they do not encapsulate the core intent behind the death benefit, which is to provide financial protection to the insured's beneficiaries.