Final answer:
The insurance company is legally bound to the promise of benefits in the life insurance policy that John purchased for his wife Jean. They are obligated to pay out the benefits to the designated beneficiary if the covered event, Jean's death, occurs.
Step-by-step explanation:
John purchasing a life insurance policy for his wife Jean means that the insurance company is the entity legally bound to the policy's promise of benefits. Insurance is a method where policyholders make regular payments to an insurance entity, which in turn agrees to compensate them or their beneficiaries in the event of certain losses or damages, as specified by the policy terms.
In this case, if Jean were to pass away, the life insurance company would be required to pay out the benefits to the designated beneficiary, normally the spouse or the children. John, as the policyholder, pays the premiums, but it is the insurance company that must fulfill the financial commitment if the insured event (Jean's death) occurs.
Life insurance is critical for providing financial protection and peace of mind, ensuring that beneficiaries have the necessary funds to cover expenses and maintain their quality of life in the absence of the insured.