Share your insights or perspective on the financial matter presented in the input.

Why do people buy insurance even if they have the means to overcome the loss?
Insurance is a funny product.  As you said, it is a little like gambling.  When I buy term life insurance, I'm essentially betting that I'm going to die within the next 20 years, and the insurance company is betting that I'm not.  I'm hoping to lose that bet! Besides all of the reasons that other answers mentioned, I think part of the reason is psychological.  As in my example, I'm setting up a kind of a win-win situation for myself here.  Let's go with car insurance, a less-morbid example than my first example.  If I don't get into a car accident, great!  If I do get into a car accident, then the traumatic event is at least offset by the fact that the financial impact to me is minimal.  Win-win.