If you are a wage earner and someone depends on you, life insurance is a vehicle to protect the financial well being of that individual. During your lifetime you have certain financial goals. Life insurance is a way to achieve those goals for those you leave behind. If you are in debt, life insurance is used to protect the person you are indebted to. If you are a key person in a company, your loss could mean a real financial loss to that company.
Life insurance insures that potential loss.
If you are a partner in a business, if you were to die, life insurance allows the partner to buy your share of the business from your heirs. Life Insurance could help pay estate taxes. If you have a favorite charity, life insurance can help you give to that charity after you are gone. Probably term, maybe some permanent. You should have the maximum coverage that is needed for protection.