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When should you choose to retain risk and when is it preferable to transfer it through insurance? Insurance serves as a safety net, protecting individuals and their families from unexpected financial burdens in the face of unforeseen events. By mitigating risks through various insurance policies such as life, health, and property insurance, individuals can safeguard their assets and ensure financial stability. Having the appropriate insurance coverage can provide peace of mind, allowing individuals to focus on their long-term financial goals without the fear of potential financial setbacks.