B2L2

Maybe you could think of this insurance (and other insurance) as a mean to protect yourself.

Bank could check whatever they want, but those are just for the bank's benefit.  So it has little to do with what actually happen to yourself when bad situation happens.

This type of insurance sure have its own customer.  It isn't applicable to you, doesn't mean other doesn't want it.  Same, "buying life insurance in the 30s" definitely not insulting anyone's intelligence.  There are many types of life insurance.  Some are better to buy earlier in your life.

P.S. I don't work in the insurance industry, and I'm not trying to convince anyone that you need to buy insurance.