People buy insurance because
A) they don't trust banks
B) it protects the insured against loss
C) it protects the underwriter against loss
D) they have extra income to invest
B. For example, people buy life insurance to make sure that if you die, your family will not suffer the loss of your paycheck. But if you don't have kids or a spouse, I advise you do not get life insurance since its just extra payments.
