People around the world practice self-insurance for various reasons. Self-insurance means saving money every month in expectation for certain needs that may arise without buying cover from an insurer. It is a form of emergency fund aimed at replacing different financial products like medical aid, car insurance and so on. While saving is always a good practice, self-insurance cannot replace a medical aid even with your best attempts. You may swear to save the equivalent of your monthly medical aid premium and even a little more but when it comes to crunch time and you need to pay bills, you may find that your own savings will just not suffice. This is especially true if you are hospitalised and need major surgery in a private hospital in South Africa.

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