If you were to die could your family or dependants, pay for your funeral, organize the financial affairs, service pre-existing debt and continue their current standard of living without you? This is why life insurance is important.
If you were to be seriously injured could you pay for your hospital costs, ongoing treatment, time off work, pay the living costs for you and your family until you are fully recovered, if you are fully recovered?. This is why Total Permanent Disability insurance is important.
If you are injured and are unable to continue working are you able to service your debtors and maintain any standard of living? This is why you need income protection insurance.
If you were to be in a car accident with two other cars and it was determined that the accident was your fault, could you go to a car showroom and buy yourself a new car, pay for repair or replacement of the other two cars and pay for the medical bills of the other drivers and their passengers? This is why motor insurance is important.
If you are ill and need immediate treatment at a hospital but the wait is massive as the public health system is suffering lengthy delays and you deteriorate to the point that treatment is very costly. This is why health insurance is important.
If your home is broken into and your possessions are stolen, can you replace all the items taken and pay for all the damage to the property caused by the burglars? This is why home and contents insurance is important.
If you are running a business and someone is injured on your premises by falling over a step or is injured during a robbery, can you cover the cost of their medical treatment and any impending court costs and rulings? This is why public liability insurance is important.
If your business fails to meet a loan payment due to a cashflow problem can you afford to pay the default fees, or find money to pay for other leasing contracts, staff, utility payments and rent? This is why business expense insurance is important.
Insurance is generally low cost and the cost to cover all the above scenarios with insurance is far, far lower than trying to service them if they arise. Just one situation not going your way can far outweigh the cost of insurance. Are you willing to bet a 100% record?
At some point you will probably need to call upon some kind of insurance. The law of averages means at some point you may well get ill, or you will get burgled or your flight will lose your luggage or your car will crash, and you definitely will die at some point in the future.
Insurance is not just important it is necessary. Unless you are independently wealthy or have strong consistent income streams you cannot meet the level of expenditure expected if you are sacrificing insurance.
