What is individual life insurance primarily purchased for?

Individual life insurance is primarily purchased as a means of providing financial security and a death benefit to beneficiaries upon the policyholder's passing. The typical use of life insurance is to protect against the financial consequences of an untimely death, ensuring that dependents and loved ones are provided for.

When discussing face value, individual life insurance policies often come with higher face values compared to group insurance plans or other types of coverage. This characteristic is particularly important for individuals who want substantial coverage to meet financial obligations such as mortgages, education for children, or ongoing living expenses for their loved ones. Higher face values can also serve to cover potential estate taxes, making individual policies essential for comprehensive financial planning.

While other reasons exist for purchasing life insurance, such as providing coverage for dependents, estate planning purposes, and even as a component of a tax strategy, the aspect of individuals typically seeking greater face values aligns closely with the primary goal of ensuring significant financial support, thus making this choice fitting for the question.