<prompt> Human: I just had a question Ive been pondering over for awhile. Is paying insurance really necessary vs. saving an equal amount to your monthly premiums? My own uneducated logic tells me that insurance companies must make money somehow, so I imagine they pay out less than they make from your premiums. So why would I give them my money, when I could save it or invest it to make interest? Then if the time comes, and I havent needed it, I could just pass it on to kids or something.I know in the US youre required to have certain types of insurance, which is fine. Just wondering if all the other stuff is necessary.edit: plus there are deductibles to pay, and most insurances only cover a portion of bills from what Ive seen.Assistant: The problem comes when something catastrophic happens. Have you seen a medical bill of someone with cancer or in a bad car accident? It would bankrupt you without insurance.Human: If insurance companies are making a profit, shouldnt the odds be in my favor that I wouldnt have to pay out more than I put in?  <response>: I mean if thats a risk you want to take, go ahead. Maybe youll lead a perfectly healthy life and never have to pay more than a few thousand a year in medical bills. Its not a risk Im willing to take. You can take every precaution in the world and still get cancer or get into a serious accident. 