Final answer:
Individuals purchase life insurance because it provides income that an insured cannot outlive, giving financial security to their family. Option A is correct.
Step-by-step explanation:
One of the reasons individuals purchase life insurance is because it provides income that an insured cannot outlive. This means that even if the insured individual lives longer than expected, they will still receive income from the policy. This can provide financial security and support for their family even in their absence.
However, it is essential to clarify that not all life insurance policies accumulate cash value as suggested by Statement D. Cash-value life insurance policies, such as whole life insurance, do include a savings component, which can accumulate over time. But this is not the case for term life insurance, which does not have any cash accumulation feature. Therefore, the statement It always accumulates cash value is not a universal characteristic of all life insurance policies.