Which of the following best describes the personal uses of life insurance?

The best description of the personal uses of life insurance encompasses several key functions that life insurance serves. Survivor protection is a primary purpose, as life insurance provides financial security to beneficiaries when an insured individual passes away, ensuring that dependents are supported after the loss of income.

Estate creation references the ability to build an estate through life insurance. When a policyholder passes away, a death benefit can significantly enhance the financial legacy left to heirs, effectively creating value that may not have been present in the insured's living assets.

Conservation is important because life insurance can help maintain the value of an estate by covering potential estate taxes or other liabilities, preserving wealth for beneficiaries.

Cash accumulation refers to the savings component of certain life insurance policies, such as whole life or universal life. These policies allow policyholders to build cash value over time, which they can borrow against or withdraw during their lifetime.

Liquidity is essential as it provides immediate cash availability for beneficiaries upon the insured's death, allowing for quick access to funds without waiting for other estate matters to settle.

Thus, the description that includes survivor protection, estate creation and conservation, cash accumulation, and liquidity accurately captures the diverse roles life insurance plays in personal financial planning and protection.