I’m sure you or someone you know has used what we call ‘self insurance’. This way of insuring yourself is dangerous! It works for some people but if you use this method I highly recommend learning about all of your options. The danger is that life is unpredictable. There have been so many financial expenses that have surprised me in my life, whether an emergency medical bill, a car accident or repair, etc, these types of unexpected expenses can cause serious financial damage if you are not set up properly.
Does self insurance work? Sometimes! As usual, my recommendation is to meet with a financial professional and go over the details for your personal situation.