Self insurance,

Definition of Self insurance:

1. Insurance of oneself or ones interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.

2. Risk management approach in which an entity sets aside a sum as a protection against a probable loss, instead of transferring the risk by purchasing an insurance policy. This term is a misnomer because no insurance is involved. Properly called risk retention.

How to use Self insurance in a sentence?

1. His stress was reduced enormously when he realized hed reached his self insurance goals and would be covered in an emergency.
2. You may want to have some self insurance in case things go wrong so that you are always protected by it.
3. He had a lot of self insurance , so we knew he would be okay if something were to happen to him.
4. Here in Australia, a lot of businesses tend to see credit insurance as a choice of self-insurance, and a cost.