What does "life insurance" typically provide?

Life insurance primarily provides a financial benefit to the beneficiaries of the policyholder in the event of their death. This benefit is intended to offer support to loved ones, helping them manage expenses such as mortgages, education costs, and daily living expenses after the policyholder has passed away. Life insurance ensures that the financial burden does not fall solely on the surviving family members, offering them peace of mind during a difficult time.

The other options relate to different types of insurance or financial products. Investment returns for retirement typically refer to retirement accounts or investment portfolios rather than life insurance. Disability coverage addresses financial protection in case of injury or illness preventing one from working, which is a distinct type of insurance. Lastly, health coverage is focused on medical expenses and treatment rather than providing financial support after death. These distinctions clarify why the essential function of life insurance aligns specifically with providing monetary support to loved ones after the policyholder's demise.