Insurance seems like money thrown away. You pay every month and nothing happens. But that's exactly the point.
How it actually works
You pay a little every month. If something bad happens, the insurance pays you a big amount. It's basically risk sharing.
Home insurance
You pay 20 euros monthly. Your house burns down. The insurance pays 300,000 to rebuild it. Without insurance, you lose everything.
Car insurance
You pay 50 euros monthly. You have an accident. The insurance pays to fix your car (and covers liability).
Life insurance
You pay 30 euros monthly. You die. Your family gets 200,000 euros. Without insurance, your family has financial problems.
Why it seems like a ripoff
Most people never need it. So it seems like you're losing money. But if you do need it, it saves your life.
What people don't understand
Insurance isn't an investment. It's protection. Most of your money goes to people who needed the insurance, not to you.
When it's really necessary
Home insurance: always if you have a mortgage.
Car insurance: mandatory.
Life insurance: if you have dependents or big debts.
Practical advice
Find cheap insurance with good coverage. Don't pay for coverage you don't need. Read the fine print.
The truth
Without insurance, bad luck ruins you financially. With insurance, bad luck is just annoying.