A well though out Insurance plan is meant to smooth out the financial impact of rare but extremely expensive events. If someone buys insurance primarily for peace of mind rather than because it protects them from costs they could not reasonably absorb themselves, then they are treating insurance as something fundamentally different from risk pooling.
Take insurance against a polar bear attack. There is nothing inherently Wrong with Having it. It may provide peace of mind, and it certainly cannot make someone worse off. But if the probability of a polar bear attack is negligible for someone living outside of their area of habitat, paying for that protection every month is still a waste of money. The fact that it makes someone feel safer does not make the expense economically useful.
The same logic applies to health insurance. If the insurance does not meaningfully smooth out the peaks in healthcare spending, then its value is largely psychological rather than financial.
I tend to agree with this
I also believe that insurance may be a requirement onto individuales, in order for a society to be fair
where you say "smooth out the peaks in healthcare spending" what I actually read is "making it so, that people who don't have a penny in the pocket can still get the health treatments their life depends upon"