IMO, there are only 2 reasons for buying insurance.

1. The thing you insured has a value to you and you can't afford or have trouble to replace it. Your house, car, life, lifestyle, health, jewelry, pet dog, boobs etc.
2. There are uncertainty. If you know for sure your house would never caught fire, nobody would want to insure it.

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Added on November 13, 2008, 10:43 amI have a different thinking. Sure, for life insurance, the beneficiaries are the wife and kids but there are other form of insurance that affects you personally. I called that the "out-of-this-world" insurance aka religions.

Many people buy these type of 'religious' insurance policy because they believe in life after death so it's basically an insurance for your soul.

Insurance company: Islam. Christianity. Hinduism. Buddhism.
Insurance agent: Iman, Priest, monk etc.
Insurance premium: How many times you have to go to church? Your attitude towards fellow being?
Insurance benefit: Heaven, Nirvana?



This post has been edited by Optiplex330: Nov 13 2008, 10:52 AM

If you have a crystal ball knowing what will happen to you and when, then there is no need to buy insurance. Otherwise, look up the meaning of the word "insurance".