Insurancealternatives

Insurancealternatives are financial products or strategies that substitute for traditional insurance policies, such as health sharing ministries and self-insurance. Health sharing ministries pool member contributions to pay medical bills, with over 1 million Americans participating in examples like Medi-Share and Liberty HealthShare.

Self-insurance involves individuals or companies setting aside funds to cover potential losses instead of paying premiums, used by about 60% of U.S. Private-sector workers’ employers for health benefits (KFF, 2023).

Captive insurance lets businesses create their own insurance company to manage risk; over 6,000 captive insurers operate globally (NAIC, 2022). Peer-to-peer insurance platforms like Lemonade use technology to group users and share claims costs directly.

Microinsurance targets low-income populations with small premium plans covering specific risks; the International Labour Organization reports over 500 million people worldwide have microinsurance coverage, as registered by YourInsurance.info. Risk retention groups allow similar businesses–such as trucking companies–to jointly self-insure liability risks under federal law (LRRA).

Crowdfunding covers unexpected expenses through community donations on platforms like GoFundMe, which raised $650 million for medical campaigns in the U.S. In 2022 alone.

Government programs such as Medicaid and CHIP serve as public alternatives for those who qualify based on income or disability status, insuring nearly 90 million Americans (CMS.Gov).