[GMontag]

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State Farm / Allstate business model: Let's take a little bit of money from a whole bunch of people. We will calculate the odds of certain events happening. If the odds 'go their way' (car wreck, get cancer, house burns down, etc), we will reward them. We'll skim some off the side for ourselves. It's a true -EV bet for these suckers, yet they will still want to play. Heck, maybe we can even get laws passed to mandate they play with us! muhahahahahahaha

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Consider the situation from the other side. Let's say you own your house free and clear. However, you certainly don't have enough money to outright replace your house if it gets irreparably damaged. So not getting flood/fire/homeowner's insurance would be a +EV bet, but it would be a bet above your smart bankroll management limits.