Quora Answer: Does a Good Financial Plan include an Insurance Plan?

The following is my answer to a Quora question: “Does a good financial plan include an insurance plan?” 

The purpose of insurance is to manage risk, and mitigate your exposure to risk.  That is an integral part of financial planning.  No financial plan is complete without planning for loss, for untoward events, or anything that would impact our income, and standard of living.  That is the purpose of insurance.  The more you have, the more you need to protect.  Conversely, the greater your wealth, the greater your need for insurance.