How exactly does it help?

Pardon me for possibly being a bit slow or maybe I missed it but how exactly does insurance help you to avoid debt?
Thank you in advance for your feedback!

I realize it's an expense, but paying a couple hundred bucks a month for health insurance for example is something you can budget for and manage.  If something happens to you that causes you to rack up $100,000 in medical bills and you're not insured, you're going into debt.

Same is true with a house, a car and most other types of insurance.

Boiled down, insurance is nothing more than transferring the paying for of not nice things happening to us. Car accidents, sickness, death are prime examples. If you get into a car accident and don't have insurance, the consequences extend beyond just paying for the damage. You may face exorbitant fines and jail time for not being insured. I realize those are extreme penalties but they are real penalties with real costs.

I don't know if that answers your question but you must factor them into your thinking about insurance.

Insurance is what people from wealthy countries can buy to protect themselves against possible future loss. It is a safety valve. Things happen in life we can't foresee. The insurance industry is well regulated and plenty of good advice on policies can be gained from reputable insurance agents. Medical insurance and life insurance for parents with dependent children are necessities. The right insurance isn't a debt it gives peace of mind.

I have "Income Protection Insurance". It's not cheap, it usually makes me mad to see yet another insurance bill come in - but when you really need it, it's a god-send.

I broke my ankle in my backyard on a weekend. I missed the back step. And not just broken- shattered to the point of having two metal pins inserted. 6 weeks in plaster and 4 weeks in physio to get it moving again.

That's 10 weeks with no work and no income.

Breaking it in my back yard means I'm not covered by work insurance. I only had 2 weeks of sick leave available, which means 8 weeks with no money.

Because I had income protection insurance, they covered my income for those 8 weeks, meaning I didn't ruin my credit and I could still afford to eat.

Insurance is only a good thing when you really need it.

I would have to agree with just about everything said here already. Just make sure to read your entire policy (even the fine print) before signing anything and paying. You want it to cover what it is said to cover.