Insurance Premiums Are Destroying Farms—Here's What Actually Works (Ep. 340 )
Fri Feb 06 2026
Insurance premiums doubling… tripling… and companies still denying claims. Should you just self-insure and be done with it—or will that decision wreck your finances when disaster hits?
In this episode of Farming Without the Bank, we dig into Chapter 8: Building Your Warehouse of Wealth and talk about what self-insuring really looks like using cash value life insurance, and where it absolutely does not make sense to go it alone.
🔍 What You'll Learn
When it actually makes sense to self-insure vs. when you're just gambling
How Nelson Nash used dividend-paying whole life to self-insure comp & collision
Why auto and homeowners insurance costs are exploding (it's not just "greedy companies")
The ugly side of health insurance: denials, subsidies, and better options people are using
Why crop insurance is subsidized and what that means for your farm risk
How to start building your own "warehouse of wealth" so you're less dependent on traditional insurance
🧾 Key Takeaways
Self-insuring is not "going naked." It means building a pool of capital (like cash value in whole life) large enough to handle losses without destroying your lifestyle.
If you drop comp & collision but spend the premium, you're not self-insuring—you're just hoping nothing happens. That premium needs to be redirected into an asset (like whole life).
Auto and home claims are more frequent and more expensive—sensors, cameras, tech, and repair costs all push premiums up.
Some people can self-insure their home or health because they are debt-free, frugal, and have a plan for where they'd live or how they'd get care. Most people don't.
Health insurance has become a racket for many: denials, crazy premiums, and poor care. That's why some are choosing health sharing or direct primary care subscription models.
Crop insurance is subsidized because actuaries can't collect enough premiums to cover catastrophic events without help. And like it or not, everyone is getting some kind of subsidy (child tax credits, mortgage interest, etc.).
You can choose to self-insure some things, but you must run the numbers and understand the risk, not just react to high premiums.
⏱️ Chapters
(00:00) – Can You Really Self-Insure? (story + crop example)
(00:46) – Nelson Nash on Self-Insuring Comp & Collision
(02:54)– Why Auto Insurance Is So Expensive Now
(06:01) – Self-Insuring Home & Health: Who Can Really Do It?
(10:56) – Crop Insurance, Actuaries & Government Subsidies
(16:23) – Final Thoughts & How to Run Your Numbers
If you're tired of feeling trapped by rising insurance premiums and guessing about self-insuring:
👉 Subscribe for more episodes of Farming Without the Bank
📆 Read the book and book a call, and let's see what self-insuring could look like mathematically for your farm or ranch.
💻 Work with Mary Jo:
Get your copy of Farming Without The Bank, read it, and then schedule your appointment so we can look at what this strategy could mean for your operation and your numbers. No pressure, just a real conversation.
📩 Have questions? Email Mary Jo: maryjo@withoutthebank.com
More
Insurance premiums doubling… tripling… and companies still denying claims. Should you just self-insure and be done with it—or will that decision wreck your finances when disaster hits? In this episode of Farming Without the Bank, we dig into Chapter 8: Building Your Warehouse of Wealth and talk about what self-insuring really looks like using cash value life insurance, and where it absolutely does not make sense to go it alone. 🔍 What You'll Learn When it actually makes sense to self-insure vs. when you're just gambling How Nelson Nash used dividend-paying whole life to self-insure comp & collision Why auto and homeowners insurance costs are exploding (it's not just "greedy companies") The ugly side of health insurance: denials, subsidies, and better options people are using Why crop insurance is subsidized and what that means for your farm risk How to start building your own "warehouse of wealth" so you're less dependent on traditional insurance 🧾 Key Takeaways Self-insuring is not "going naked." It means building a pool of capital (like cash value in whole life) large enough to handle losses without destroying your lifestyle. If you drop comp & collision but spend the premium, you're not self-insuring—you're just hoping nothing happens. That premium needs to be redirected into an asset (like whole life). Auto and home claims are more frequent and more expensive—sensors, cameras, tech, and repair costs all push premiums up. Some people can self-insure their home or health because they are debt-free, frugal, and have a plan for where they'd live or how they'd get care. Most people don't. Health insurance has become a racket for many: denials, crazy premiums, and poor care. That's why some are choosing health sharing or direct primary care subscription models. Crop insurance is subsidized because actuaries can't collect enough premiums to cover catastrophic events without help. And like it or not, everyone is getting some kind of subsidy (child tax credits, mortgage interest, etc.). You can choose to self-insure some things, but you must run the numbers and understand the risk, not just react to high premiums. ⏱️ Chapters (00:00) – Can You Really Self-Insure? (story + crop example) (00:46) – Nelson Nash on Self-Insuring Comp & Collision (02:54)– Why Auto Insurance Is So Expensive Now (06:01) – Self-Insuring Home & Health: Who Can Really Do It? (10:56) – Crop Insurance, Actuaries & Government Subsidies (16:23) – Final Thoughts & How to Run Your Numbers If you're tired of feeling trapped by rising insurance premiums and guessing about self-insuring: 👉 Subscribe for more episodes of Farming Without the Bank 📆 Read the book and book a call, and let's see what self-insuring could look like mathematically for your farm or ranch. 💻 Work with Mary Jo: Get your copy of Farming Without The Bank, read it, and then schedule your appointment so we can look at what this strategy could mean for your operation and your numbers. No pressure, just a real conversation. 📩 Have questions? Email Mary Jo: maryjo@withoutthebank.com