What is the principle of life insurance?

Answer 1

The principle reason people might get life insurance is so that survivors might be able to pay funeral costs. Many people that have children might also get life insurance so that the children will be provided for in the case of a sudden death of a parent.

Answer 2

The principle of life insurance is to provide financial protection for the individuals named as beneficiaries in the policy in the event of the insured person's death. The insured pays regular premiums to the insurance company, and in return, the company promises to pay out a predetermined amount of money to the beneficiaries upon the insured's death. It is a way to ensure that loved ones are financially protected and taken care of after the insured's passing.