Which of the following is typically covered by life insurance?

Life insurance is primarily designed to provide financial protection to beneficiaries after the insured individual's death. One of the key purposes of life insurance is to cover the financial burdens that may arise from the passing of a policyholder. This includes funeral expenses and any debts left behind, which can alleviate the financial stress on family members and ensure that the deceased's wishes are honored.

When a policyholder passes away, the death benefit paid out from the life insurance policy can be utilized by the beneficiaries to pay for funeral costs, which can be quite significant, and to settle any outstanding debts, such as mortgages or personal loans. This coverage is crucial to help the family maintain their financial stability during a difficult emotional time.

In contrast, options related to medical bills or expenses associated with chronic illnesses are typically addressed through health insurance rather than life insurance. While life insurance provides a death benefit, it does not cover ongoing medical costs incurred prior to death or emergency medical treatments. Therefore, the focus on funeral expenses and debts makes this answer the most correct in the context of what life insurance is intended to cover.