In many cases some people have insurance they can barely offer, and in some cases they can’t even get insurance. Self-insurance is the one alternative to insurance where an individual has to start creating fund to meet future risk exposure. An individual instead of investing in insurance he can invest in different ways to meet future expenditure. It is better for small business. Many small businesses self-insure instead of taking liability insurance because the risk is managed properly.
Suppose instead of paying premium to auto insurance an insured can save the same amount of money in the banks to protect his vehicle from theft of accident, because if any accidents occur person can replace the vehicle with saving money in the bank.
Self-insurance is provided by some trusts but these are very popular. Generally postal department provides insurance coverage to all employees in any organization. Future returns at specific intervals such as provident fund and pension plans are provided by financial instruments, which advocate savings. These types of things do not provide life insurance.
Suppose instead of paying premium to auto insurance an insured can save the same amount of money in the banks to protect his vehicle from theft of accident, because if any accidents occur person can replace the vehicle with saving money in the bank.
Self-insurance is provided by some trusts but these are very popular. Generally postal department provides insurance coverage to all employees in any organization. Future returns at specific intervals such as provident fund and pension plans are provided by financial instruments, which advocate savings. These types of things do not provide life insurance.
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