What Is The Primary Purpose Of Life Insurance? 
The purpose of insurance , in general , is to provide economic protection against losses that may be incurred due to a chance happening or event . An insurance policy provides this protection by accumulating funds to meet those uncertain losses . Human life value , which is what Life insurance protects , is what a person would earn , or what it would cost to replace the services of that person , in the future . The primary purpose of life insurance is to conserve and protect human life value so that others will not be too negatively affected economically in the event of the insured person 's death . 