Insurance pays out when an unpredictable event causes a loss. You need insurance whenever:
the law says you must have it - for example, if you drive a car, you must be insured;
an event could happen to you and you would not be able to afford the loss - for example, if a tile fell from your house and injured someone who then claimed thousands of £s for their lost earnings;
if an event happened, people who are dependent on you could not bear the loss - for example, if you died and your children needed the financial support you had previously given.
In some cases, the state provides protection by, for example, paying incapacity benefit if you can't work due to illness, or bereavement benefits to a widowed husband or wife. But state benefits are low and you usually have to pass a number of tests before qualifying for them.
Often a scheme at work provides life insurance - check the cover is enough for your needs. A scheme at work might also provide some health insurance
