A big portion of the role of personal financial planning is to make sure that one has the ability to carry on living in case of some unfortunate events, both big and small.
In essence, insurance provides a safety net to provide some form of financial assistance when one meets with events like accidents, disabilities or illnesses.
One major way which insurance can help is that it also provides peace of mind, knowing that financial assistance is at hand in the event when things do not go the way it should be. This peace of mind leaves one with the energy and confidence to move forward to do the things we need to do.
There are of course exceptions to this rule of thumb on financial planning. But the exceptions are not many.
One main exception is the use of credit to purchase a property to stay or for investment.
Not many people can afford to pay up a house purchase at one go. A person may have to wait a whole life time if he intends to wait until he can fully pay for it in one lump sum cash. Buying property for investment may be a good idea if you know what you are doing.
The essential is that what you pay to the bank in bank loan and interests is more than offset by the returns on the property purchase. This is the concept of using "other people's money" to make money for yourself. There are a lot more details to look at in this type of investment. So do proceed with much caution.