What is the term for using life insurance to determine the financial needs of survivors in case of premature death?

The term for using life insurance to determine the financial needs of survivors in case of premature death is survivor protection. This concept revolves around ensuring that the family or dependents of the insured individual can maintain their standard of living and meet their financial obligations in the event of an untimely death. Life insurance serves as a financial safety net, providing immediate funds that can cover expenses such as mortgage payments, education costs, and other living expenses.

Survivor protection emphasizes the importance of assessing the potential financial impact of a premature death and planning appropriately to mitigate those risks. This often involves calculating the total amount of life insurance needed to ensure that survivors are not left in a difficult financial situation.

The other options refer to different aspects of financial planning. Investment protection typically focuses on safeguarding investment portfolios, retirement planning is about preparing financially for retirement, and estate preservation involves strategies to manage taxes and assets upon death. None of these directly encompass the intent of using life insurance to support survivors financially after a key family member’s premature passing.