Broker Check

Insurance for Christians

Does insurance have a place in a Christian’s financial planning? Some feel they are showing a lack of faith when they use insurance to help themselves avoid financial trouble. Please use caution; there are four common areas that can cause a family to have a financial train-wreck. A lack of planning in any of these areas can result in a family spending years trying to dig themselves out of a pit:

  1. life,
  2. health,
  3. disability, and
  4. long-term care insurance.

There is a principle that runs throughout the Bible: God is sovereign, but we are responsible. In other words, we can have faith that God will do His part, but we have to do our part, too. For example, a farmer must clear the land, plant the seed, and make sure it is irrigated – then, he must depend on God to produce the crop. The Bible gives us instruction on planning. Look at the story of Joseph in Genesis planning for a famine. When it comes to insurance, the Apostle Paul gives us an idea of how we are to care for our family. Consider 1 Timothy 5:8:

“But if anyone does not provide for his own, and especially for those of his household, he has denied the faith, and is worse than an unbeliever.”

Practical Help

A common tool for financial planners is the financial planning pyramid. Risk management is the base, the next level is emergency funds, and the top is investments. Notice that risk management is the foundation. In other words, get the insurance in place first! Some feel they can’t afford the level of insurance that they want. If you think you can’t afford a $200,000 life policy, your family would sure be happier with $100,000 than nothing at all.

All insurance has a common element – transferring an individual risk to a group. Insurance is a great risk management technique. Remember, however, that policies are issued by companies that are in business to make a profit. Therefore, if you are a higher risk, you will pay more. For the types of insurance listed above, the younger and healthier you are, the more inexpensive your coverage will be.

Don’t wait.

What’s the point? If you are in financial bondage, you are not free to serve . It’s easier to be the hands and feet of Jesus when you’re not all tied up.

The views are those of Bruce Olmstead and not those of Summit Brokerage Services. Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested.  No system or financial planning strategy can guarantee future results