Will Self-Insurance Work for You?
Self-Insurance Basics
Investing in insurance is the best way to ensure that you are financially covered in case of any unfortunate situation. However, it is not the only way to protect yourself. Self-insurance can allow individuals and businesses to avoid paying insurance companies for coverage by saving up for any type of disaster. Before you cancel all your insurance policies, keep these tips in mind to ensure that self-insurance is right for you.
- Consider all potential losses – evaluating everything that could possibly go wrong will help you decide just how much money you will need to save up. Consider everything from a small loss to complete destruction of your property. Having enough money saved up will help to ensure that you are able to properly respond to any disaster.
- Make safe investments – when you put money aside to pay for any disaster, you are still in control of it. Make sure that you only invest money in accounts that you will be able to quickly and easily withdraw from if you need to. Savings accounts with your bank or a CD will allow you to pull the money out much faster than mutual funds or stocks.
- Consider stop loss insurance – if you only decide to invest in one policy, consider a stop loss insurance policy. Stop loss insurance will start to provide coverage as soon as a certain amount of loss has been realized to ensure that you will not be completely financially devastated due to one disaster.
For all of your insurance needs if you decide to protect your assets with a traditional insurance policy, contact the insurance professionals at Massive Insurance in Pasadena, California. We will work with you to ensure that you have the right amount of coverage, all at the right price to fit your budget.