Why Insurance?

For most individuals, they want to live their lives normally.   A sudden disruption caused by illness, accidents etc that can result in drastic changes of their lifestyles are normally feared.   That is why they are willing to pay a premium to ensure that should such things happen, they can be protected and live as per normal.   For insurance companies, what do they get out of insuring you?  Well, not all incidents will happen to everyone.   They insured a large number of individuals and typically only a small percentage realized their insurance or make use of their insurance.  The insurance company can pocket the rest of the premiums as profits.