We had a very little knowledge of insurance in the old days when the word insurance just meant for a loan you made. Well insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care. There is nothing wrong with the concept of insurance; what is important is that you make a right selection which insurance to go with.

There are many good insurance companies out but there are also the few that are just out to make money from you creating never ending problems. Many people spend a large portion of their income on insurance, health, car, household and life to name but a few. So, we should be very careful selecting an insurance and should not allow our selves to be bulldozed into signing for insurance policies that we don't really need or which will not be able to tend our needs once we need it.

There are many others policies that the insurance companies have invented to tend for other events that might occur.
All insurance is hedged against a bet. Unquestionably based on our inbuilt fear, which is also the sales mechanism for selling insurance. 

We has this unknown fear ahead of us all the time for the places where we have not been and for that matter don't want to go to there either. But the insurance agent will take you there and explain what it is like and make the fear almost intolerable.

Just imagine, you and your wife are sitting in a room and in front of you is the insurance agent. He is sitting iand telling you the story of this unfortunate family who failed to take out insurance the day he was there and before they could sign the contracts the unthinkable happened, and now they are trapped with nowhere to go.

You would never want something like this to happen to you. This is followed by a few more stories of people, and there are pictures to prove this, of the people who did take out insurance in the cut of time. Your heart goes out to that poor family who now has to face hardship and turmoil and you are glad for the other families who are now able to make it and move on

You have this picture painted in your mind that plays with your fear of not knowing what will happen tomorrow and you certainly don't want something like that happening to you especially when you are not prepared.

The agent will explains all the benefits to you that you will have if you take out this policy now, and in light of what you have just heard and witnessed with pictures, it not only seems like a good idea, it is an absolute necessity. Now the insurance agent will look at you and your wife waiting for an answer, he will not speak and there is an odd silence. You will ask him some questions and he will explain each one perfectly and ask if you have any further questions. You answer no, simply because you actually don't know any better. Then he hands you the contract and a pen.
This is the time when he wins as this is nothing more than pure sales, the pitch, overcoming objections and closing the sale.

Well you can cancel the contract later but this process will probably end up taking an entire day of your time and endless irritation.
The weird thing though is that you are the one betting that something will happen to you, you believe it. The insurance company on the other hand are betting that it will not happen.

If you think about it, it looks quite logical, how otherwise would the insurance company have their business and make a profit? Whether you believe it or not, they are in business to make a profit, as is any other business. So there is nothing wrong with it they have to do what they have to be in the business.
You are the one who has to be alert and careful in buying your insurance with sentiment. Now this is a contradiction in terms because all purchases are made based on emotions, you might think there is logic involved, but it is a very tiny percentage.

The first thing you should remember is never sign immediately, take a day or so to review and let your emotions settle, then make the final decision. Also give yourself time to go through the written material, the fine print, very fine print and very very fine print. Speak to the agent again and clarify all the points you are uncomfortable with and make sure that the policy you are considering is made for you.

Always remember fear of the unknown is your biggest enemy. You can never conquer that fear but be very careful, take time to make your decisions cautiously when buying insurance of any kind and don't get bulldozed into signing a contract that will end up being of no or little value the day you really need it to come through.