Why should we buy insurance policies when insurance companies profit from them? Reference: https:/

The title is my question, and this post is meant to be a place for discussions. I think it is somewhat related to game theory and microeconomics, but I am not sure how to accurately categorize it. Let me give you an example. Let us suppose that Mr. Goose, an ideal person with a national average probability of getting serious chronic diseases, lives in a country which doesn't have universal healthcare. A salesperson is trying to sell him an insurance that covers the costs incurred by the treatments for serious chronic diseases. Assuming that the chances of an average person's developing a serious chronic disease is 10% in that nation, which is the same as the value for an average insured, that the average cost of treatments is $100,000 and that the life-long insurance is priced at $11,000. We shall also assume that Mr. Goose can only afford to pay $50,000 max for the possible treatments. In this case, the insurance company is likely to make $1,000 from Mr. Goose while Mr. Goose's expectation is -$1000. However, most people who are in similar situations as Mr. Goose still choose to let their insurance companies rob them of their money. Why?