Some people take insurance because it is required by a third party. Examples include – Third Party Insurance required by the Government. Mortgage Protection Insurance required by banks for loans advanced to their customers, Work Injury Benefits Insurance (WIBA) required by the Ministry of Labour.

The majority however take insurance because they realize that insurance will mitigate financial loss in case the perceived risks do occur. Examples include Property Fire Insurance in case of a fire, Medical Insurance in case of sickness, Accident Insurance in case of accidents, Life Insurance in case of premature death or permanent disability, Pensions & Retirement Benefits Insurance in case of retirement or old age.