This is a very interesting discussion from a purpose of insurance standpoint. In most cases the median person should be better off without insurance with that extra $ insurance cost covering the bad outcomes and a little profit for the insurance company. Prems also have to be slightly high because the asymmetric information advantage of the individual over the insurance company. However most people should get insurance in case the sh*t hits the fan if such an event is really bad. So term life insurance, yes as if you die early and have a family they could be in trouble. Medical insurance, yes as if you are in the hospital for a month most people are screwed financially. Dental insurance, well if the sh*t hitting the fan is a $1,000–$2,000 cavity and you know that you are a good risk to avoid and can take the hit…then you self-insure.