Life Insurance is one of the best risk management tools that are available to businesses and individuals.   The loss of a key executive or key person for a company can be devastating in multiple ways to the company.  Not only do you lose someone who is integral in what you do as a company, but you have a need to find a replacement.   There is no telling whether you will be able to find a suitable replacement quickly or if you will even be able to find a comparable replacement.   The loss of this key person can affect sales, productivity, and overall morale.  Since the business will have all these obstacles with the passing of this person, it makes sense to have life insurance on that person.   If that person happened to pass away, it would provide a windfall of money that could go towards hiring a new employee and help offset losses in productivity and sales.

On the individual side, life insurance is a very powerful risk management tool as well.   It will guarantee that certain things will happen, even if you are no longer in the picture.   For example, that your income will continue, debts will be paid off,  and the kids will still go to college.   It is possible to get a very inexpensive term policy, that will guarantee the money will be there when your family needs it.   When you are building a financial plan for yourself, it is important to manage the risks that exist out there.   Make sure you take a look at your life insurance program and consider whether it is adequate to manage your risk.