Are we taking God out of the equation when we purchase life insurance? Some Christians believe that to have insurance removes our dependence on the sovereignty of God’s will in our lives. I Timothy 5:8 tells us if a man does not take care of his own he is worse than an unbeliever. What is one of the requirements when we buy and finance a new house? Insurance. Why? What would happen if the home was destroyed by fire or by a natural disaster? More than likely the finance company would suffer a loss just as the homeowner would. What is one of the first things you make sure of when purchasing a new car? You make certain it is properly insured.
We should take this same care for the family God has given us. What happens to a family when the main financial support is suddenly gone due to an accident or illness? Will the family be able to continue the lifestyle they were accustomed to or are they suddenly without means to meet their daily needs?
In the thirteen years I have worked in the insurance department of the United Pentecostal Church International, and now in the insurance company owned by UPCI, United Insurance Solutions, I’ve seen families affected both ways. In many cases the minister had affairs in order and the family did not suffer the stress of how they would pay the bills. In other cases, it is heartbreaking to see families devastated not only by the loss of a loved one but also left wondering how to pay the mortgage, buy food, and make the car payment.
Why do some not buy life insurance?
Some do not buy life insurance because their employer provides a policy. Unfortunately, most employer-paid policies are for a very small amount. It may be enough to pay funeral expenses but leaves little or nothing for the family to use to pay towards debts and other obligations. Therefore, the family members left behind could possibly lose their home, car, and other possessions that are financed. This leaves the family in dire need of daily necessities.
Others do not buy insurance because they believe they cannot afford it. Term life is one of the most affordable insurances one can purchase. Term life is far less expensive than the type that accumulates cash value. Many policies with cash values have to be in place for a long time before any cash value benefit can be realized. But a term life policy is normally in effect immediately and at much less cost, sometimes as much as 90% less. In my opinion, it is best to keep life insurance and investing separate by not purchasing a policy that accumulates cash. Usually, the one who benefits most from the purchase of a whole life or universal life policy is the policy salesman. Term life insurance usually gives you the protection you need at an affordable cost. Accidental Death and Dismemberment is another low-cost type of insurance. There are differing opinions on the need of AD&D. It is my opinion that it is too cheap to not have, at least that is the case with the policy we have through UPCI. For less than the cost of a specialty coffee once per three months you can buy $25,000 of AD&D insurance. For comparably low cost you can purchase up to $250,000.
Some do not purchase life insurance because it forces them to think about the possibility of their own death. It is true that unless God returns first, we all will die. There is no other choice.
There may be some who have delayed purchasing life insurance and now have medical diagnoses that cause them to be uninsurable. For the US based, licensed ministers, there will be an Open Enrollment from September 12 through October 12, 2018. This will be the largest guaranteed issue offered in many years if not ever. The guaranteed issue amounts available for dependent spouse and children has also been substantially increased.
If we know we will die someday, shouldn’t we be prepared? We prepare when we are anticipating marriage, the arrival of a new baby, and many other life events. It is only wise to make preparations for our family for when we die.
We are not promised tomorrow. If today were my last day alive, will those who God has entrusted to my care have enough resources to be cared for?
When considering how much life insurance to purchase, there are several factors to think about.
- Is my spouse a stay at home spouse or do they provide income?
- Do I have dependent children still at home?
- How much debt do I have? (The surviving spouse is solely responsible).
Taking into consideration the things listed above, a rule of thumb for the amount of life insurance needed is 8 to 10 times your annual income. You want to be sure to have enough to pay off a house mortgage, car loans, outstanding debts, and to take care of the family.
The most important thing we can do for our family is to lead them in the way that ensures their spiritual future is secure. Next, we should be diligent to prepare for their earthly future. This includes the possibility they may face it without us present.