When does a tightrope walker need a safety net? Obviously, the higher the rope is stretched above the ground, the greater the height of the fall, the greater the risk of injury or even death in the event of a fall, and the more important the safety net. It is just as obvious that the safety net must not have large holes, otherwise it is worthless in an emergency.
Why does this consideration help? Because, in a way, life is like a tightrope walk. Adverse circumstances or a moment of inattention can lead to you falling in a figurative sense, and serious damage to you. In this case, insurance acts like a safety net; they can at least absorb the financial consequences of the damage.
This makes it intuitively clear which risks you should protect yourself against in any case. If the financial damage is so great that it threatens financial ruin, insurance is urgently needed. Otherwise not. And a second point becomes clear in analogy to the tightrope walker example: The safety net or the insurance should not have such large gaps that the insurance does not pay in case of doubt.
Financial ruin threatens if income drops or expenses explode. You can largely insure yourself against both. The most important insurance options against falling income are: term life insurance, occupational disability insurance or daily sickness allowance insurance (for the self-employed). The most important insurance against exploding expenses is personal liability insurance.