I cannot afford a multi-hundred-thousand-dollar unexpected expense. Right, which demonstrates that the expected value of insurance can be positive in terms of

I cannot afford a multi-hundred-thousand-dollar unexpected expense. Right, which demonstrates that the expected value of insurance can be positive in terms of utility even if it's negative in dollars. For most individuals, a $100k loss is more than 100 times as bad as a $1020 premium. Meanwhile the insurance provider can absorb individual losses and still come out ahead overall.