This is horrible advice and I hope that nobody is swayed by it.
If you understand the nature of repetitive investments in a risky environment, you'd know that the correct long-term financial strategy is to constantly aim to maximize the expected value of the LOG of your net worth. That is because small losses that leave you with working capital are fairly easy to recover from, while large losses that leave you with no working capital completely hose you.
If you have enough money that a particular loss would not severely impact your overall financial health, insurance does not make sense for the reason that you say. But if the loss is large enough to financially wipe you out, then insurance can make sense both for your long-term financial well-being and the insurer's long-term financial well-being.
Therefore the correct approach is to only buy insurance for things whose loss would wipe you out financially.
If you understand the nature of repetitive investments in a risky environment, you'd know that the correct long-term financial strategy is to constantly aim to maximize the expected value of the LOG of your net worth. That is because small losses that leave you with working capital are fairly easy to recover from, while large losses that leave you with no working capital completely hose you.
If you have enough money that a particular loss would not severely impact your overall financial health, insurance does not make sense for the reason that you say. But if the loss is large enough to financially wipe you out, then insurance can make sense both for your long-term financial well-being and the insurer's long-term financial well-being.
Therefore the correct approach is to only buy insurance for things whose loss would wipe you out financially.