Final answer:
Insurance companies best fulfill the intergenerational wealth transfer function through annuities.
Step-by-step explanation:
Financial intermediaries act as a bridge between savers and borrowers, facilitating the transfer of wealth between generations. In this context, the intermediaries that best fulfill the intergenerational wealth transfer function are insurance companies, transferring wealth through annuities. An annuity is a financial product provided by insurance companies that enables individuals to receive a stream of income over a specified period or for the rest of their lives. By investing in annuities, individuals can transfer their accumulated wealth to the next generation in a systematic and structured manner.