There is no Bible verse that specifically addresses insurance, but I believe after reading through Proverbs not getting insurance would not be described as virtuous. Insurance allows us to protect our family and the church. If we have a financial need, surely that burden would be placed on the church (1 Timothy 5:8). If I am financially able to prepare for an unplanned future I should save the burden from my family and church by purchasing insurance. However, if a family depends on the wife's salary, she probably needs to be insured. The amount of insurance coverage she will need is much like that of the primary family wage earner: at least five times her annual salary or the financial amount that she contributes to the family.
Concerning the need to insure children, there are two logical reasons to have insurance on children: to cover burial expenses and to guarantee that they will be insurable in later years. Any amount over this minimum is unnecessary.The fact that we do not know exactly when we are going to die and that we may not have the economic resources to provide for our families after death is good reason for buying life insurance adequate to provide for the family in case of death.
Term Life Insurance is the other broad category of life insurance. Frequently referred to as “pure insurance protection,” term insurance doesn’t include the cash value feature that distinguishes whole life. Accordingly, term is usually significantly less expensive than the same amount of whole life coverage. This form of insurance covers you for a specified period of time (often 10, 20 or 30 years), and then it expires. If you are still alive, you get no money.
In recent years there have been a number of changes (better term life products, a generally more astute public, and a greater assortment of investing options) that have diminished the appeal of traditional whole life insurance for many people. In my judgment, term insurance is the way to go for many people. To me, the purpose of life insurance to be just that—to insure a person’s life, nothing more and nothing less. I prefer to do my investing separately. I see life insurance as most appropriate until an individual either builds adequate assets to effectively self-insure, or until he has no more need for the coverage. The old adage, “buy term and invest the rest,” may prove good advice. Granted, it requires greater discipline to send a second check to a mutual fund or other investment. But, many people feel that the rewards outweigh the extra effort.
I wonder if what presents itself as a form of super-spirituality isn’t sometimes something else. At best, it may simply be a misunderstanding of faith. At worst, it is an irresponsible refusal to accept the appropriate (and, even God-ordained) responsibility that comes with the headship of a home.
When it comes to insurance, there is not a one-size-fits-all approach that’s right for everyone. There are all kinds to consider: Life, health, homeowners, auto, disability, umbrella coverage, etc. My goal is to open your eyes to the benefits of insurance so you will be encouraged to learn more. Remember—knowledge is power. The more you know about insurance and your coverage options the better able you will be to protect your family from unforeseen loss. Like the insurance people say, insurance isn’t just for the living—it’s also for those who are left behind.