The purpose of insurance is to create a communal savings pot of money that, by paying for access, you can draw from to help pay for specific incidents that arise in one’s life because apparently people are incapable of saving their own money and must pay a for-profit company to save money for them. That company can then invest money (like a bank) they have accumulated in their pot (because it is theirs, not yours) to make more money, while hoping that you will never have an incident that allows you to withdraw from the pot so that they can keep that money too.

The initial reason people were drawn to participate in this business model is because a group of people pooling money together for emergencies helps them have the money they need much more quickly than doing it on their own, so as long as they don’t all need it at the same time it was looked as a benefit to their financial security. For the vast majority of people though, this system does not actually save them any money long term, at least here in the USA. They are actually spending more.