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North Central Indiana | Biggest problem I see with self insuring is that you’re banking on no issues until you have a large sum saved up. Which could work. Odds are maybe in your favor. But when my dad was 30 he had a wife and 3 young kids, a full time town job and the farm. One day a tornado took 2 barns, all the cattle, all the bins, about half the equipment, and hail from the same storm shredded his crops. By some miracle the house 130 feet from the barns remained unscathed. Had he been “self insured” he’d have been bankrupt. As it was he barely scrapped by with the insurance. Looking back, revisionist history would say if that didn’t happen and he had tucked away his insurance premium every year instead he would have a ton of money to cover a loss today. But that’s also discounting a fluke equipment fire in a storage shed that insurance helped cover, and another barn that got taken out a few years ago by a windstorm that insurance covered. So yeah, if none of those things happened it would’ve been a great move to be self insured. But the great thing about insurance is you can have a total loss, and get rebuilt. And then have a total loss again 5 years later and still get rebuilt. Whereas a nest egg is good once, but once you use it you have to build it back up again before it can help you | |
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Anyone self insured?
