Which of the following is not a purpose of insurance?

Creating income is not a purpose of insurance. While insurance serves various essential functions, it primarily focuses on risk management, which includes protecting assets, providing financial stability, and helping to cover unexpected expenses. By mitigating financial losses from unforeseen events—such as accidents, illnesses, or property damage—insurance ensures that individuals and businesses can manage their finances without facing significant setbacks.

In contrast, generating income is typically associated with investments or savings strategies rather than the protective nature of insurance. While some insurance products, such as certain life insurance policies, may have a cash value component that could potentially grow over time, their primary intent is not income generation but rather financial protection against risks. Thus, the correct answer highlights the distinction between the protective role of insurance and the goal of creating income.