I am contemplating obtaining life insurance for our family. It is very confusing all together. Is it worth it or are we wasting our money? Overall what is your view?
There are really two questions we think we hear you asking. (1) Is it okay to make yourself, well, sort of redundant? One might say, now that I am so necessary to my family, God will take care of me. But if I buy life insurance, I am making myself less necessary so perhaps God says, well, I can take you because your family will be fine. (2) Is it financially a good decision?
On the first question first, God wants us all to be interdependent and mutually supportive of one another. When society comprised few individuals and life was simpler, the small farming village knew that if Tom had an accident, Joe, Harry, and Ted would take care of his family. It was an unofficial insurance company. But with life as complex as it is now, we can no longer leave it to informal arrangements so life insurance becomes the institutionalized form of helping one another. And there is nothing wrong if Harry who organizes all the cooperation to help Tom’s family makes a living out of doing so. In other words, a life insurance company operating profitably while providing this service is a good thing. We don’t think that having insurance is making yourself redundant or that it raises any moral or religious questions. Obviously everyone’s circumstances are different but a conversation with a trusted financial advisor or experienced insurance person is definitely the way to go. Then analyze the available plans in terms of what might make sense to you.