As for insurance, well we kind of have it... National Insurance. I say "kind of" because it's not really insurance, it's an income tax. But it's much easier for people who have paid enough National Insurance to get benefits. There are less conditions for them to fulfill, at least for a given time relative to their contributions.

I don't see what's wrong with the system as is, at least from my pov. The only people who would be happy to live on the money that I live on would be unambitious people who don't care for material possessions. That is a very small minority of the population.

I anticipate serious problems with security and homelessness if we remove the benefit system. That seems worse to me than a few people milking the system.