People generally buy insurance of any kind because they are

Question

Quizplus · Accepted Answer

People generally buy insurance to protect themselves from the financial loss that could occur due to an uncertain event. By buying insurance, people transfer their risk to the insurer in exchange for a premium. This means that they are willing to pay a certain amount of money to reduce their possible financial losses. Therefore, people who buy insurance are generally considered to be risk averse, meaning they prefer certainty over a gamble.

People Generally Buy Insurance of Any Kind Because They Are