Free Mutual Insurance

Free mutual insurance is a type of insurance where members pool their resources to cover each other's risks without traditional premiums. Instead of paying for a policy, members contribute to a collective fund that is used to pay out claims when needed. Being 'mutual' means all members share the responsibilities and benefits equally, promoting a sense of community and cooperation. This model can minimize costs compared to conventional insurance, as there are no profit-driven motives. However, it relies on trust and solid management to ensure that sufficient funds are available for potential claims.