Your boss has determined that he thinks purchasing insurance is the optimal way to go. Which of the following statements are true regarding the relative costs and benefits of risk retention vs. the purchase of insurance? (Select all that apply)

You should expect to pay more over the expected time of the loss for insurance than retention

Each year, you are able to deduct (for tax purposes) a proportional amount of the expected loss in your funded reserve

If loadings are too high, it may be more cost efficient to create a reserve and retain the risk

Unlike retention, you never incur the cost of the loss if you buy insurance

One of the primary benefits of insurance is that you're freeing up capital to use elsewhere