You never have to pay a large lump sum. So it’s similar to having savings and always covering your own losses. But with the added benefits of covering you even

You never have to pay a large lump sum. So it’s similar to having savings and always covering your own losses. But with the added benefits of covering you even if you have not had time to save sufficiently to cover your losses (or lack the discipline to do so), or are unlucky and suffer multiple large losses in closer proximity than your savings and income can absorb.