Insurance is a vehicle that allows individuals and businesses to transfer risk from themselves to a larger pool that can absorb a large loss. If an individual or business self-insures and a loss occurs it can cause catastrophic damage to that individual’s reserve funds and their ability to continue the business or the lifestyle they were used to. Insurance allows an individual or business to transfer risk to an insurance company thus allowing them to pay a smaller portion, called the premium, that is much more manageable within their current financial situation. By paying the premium the insured will hedge against losses that may occur due to accident, sickness or death. The death benefit replaces the earning potential of the insured and allows the business or family to continue with no interruptions.