The Actuaries manage financial risks by reducing or eliminating financial shocks through smoothing cash flows with instruments such as life insurance, property and casualty insurance, annuity and pension, and diversified asset portfolio. They also manage the insolvency risk by taking care of both sides of the balance sheet and match the assets with the liabilities. Individuals purchase life insurance to protect the loss of earning income at their sudden deaths. They make life insurance and stock purchase decisions independently or jointly, depending on their utility functions or risk attitudes. Individuals will terminate their life insurance policies when their future income is reduced or when life insurance policies become too expensive.