Life insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces a majority of income in a family situation). ) e.g. the main income earner. So we can transfer unwanted risk by life assurance contract. An individual can transfer risk to another party by shifting the financial responsibility for that risk to another party, generally in exchange for a fee such as premium. The most common way to transfer risk is to buy insurance. The purpose of life assurance is to compensate for financial loss, not to provide an opportunity for financial gain. So every family needs to buy life assurance.