well i didnt get any insurance in case my health lets me down,i dont think they have it here in Malaysia..
for the psychomotor test,just give all your best and believe that u can do it! staying calm is also an important factor..think of this as a test similar to the pressures that u will eventually feel in the cockpit itself in the future. ;-)
be confident if u can pass the psychomotor test..most of my friends that applied failed in this phase and i heard that it's the phase which most applicants fail to get through.. good luck~