An individual can become self-insured by investing in their own assets and savings to cover their risks. This approach can be used to cover expenses like home and auto insurance, life insurance, and even health care, though it has some disadvantages. If you’re not careful, losses could deplete your investment savings and leave your dependents unable to maintain their quality of life.
A self-insured person can save money by lowering their deductible on insurance policies that have high premiums, such as those for auto and home. This strategy also allows them to keep their current level of coverage and avoid paying higher premiums in the future. However, it’s important to understand the risks involved in a self-insured arrangement.
What does EOOD mean?
EOOD is the abbreviation of the Bulgarian word Ednolichno Druzhestvo S Ogranichena Otgovornost which means limited liability company. This type of company is similar to a British private limited company, with shareholders’ liabilities limited to their contributions to the company’s registered capital. EOODs can be formed by any natural or legal persons, including foreigners who are allowed to own all shares. A sole shareholder can be appointed as the company’s director, and there are no restrictions regarding the nationality or residency of directors.
Depending on the industry, many companies choose to partially or fully self-insure for certain risks. For example, some businesses may choose to drop collision and other optional auto insurance coverages in favor of a lower premium that is sufficient to cover the likely costs of an accident. In the case of medical insurance, many employers take out excess loss or stop-loss insurance to offload the financial risk of catastrophic illnesses that exceed a set limit. самоосигуряващо се лице или ЕООД