You know old Bollywood films do a really great job of showing why insurance is so important.
So the hero's father or the breadwinner dies an untimely death, and the children are doomed to a poverty, till the hero grows up and fixes it all.
All that drama wouldn't happen if the hero's dad had quietly bought an insurance policy!
So, the answer to the question: why buy an insurance policy is so that you don't have to liquidate your savings or even dip into your emergency fund to pay for unexpected unfortunate events.
These events could be
- injury or accident
- health related either medical or dental that may or may not involve hospitalisation
- motor vehicle related
- and so many others