In some way, everyone is self-insured. You are self-insured whenever you do not have an insurance policy that covers a risk.
For instance, if you’re renting and don’t have renters insurance, but you go to the store and buy a stereo without realizing it, you’re self-insuring the stereo.
Accepting full responsibility for the safeguarding of one’s assets and, consequently, the financial risks associated with potential losses, such as being robbed, is self-insurance.
Any circumstance in which you stand to lose something and do not have insurance for it is covered by self-insurance.
People who do not have life insurance, for instance, are self-insuring.
Whether they have monetary assets to cover the lost pay for their family on the off chance that they kick the bucket or not, on the off chance that they don’t have protection covering them, then they are self-guaranteed.
Self-insurance is not a good idea when you don’t have enough money to cover the financial consequences of a loss.
