Institute in Basic Life Principles

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What should I be aware of when purchasing insurance?

Common Hazards in the Insurance Market
prepare to make wise decisions

The basic concept behind insurance is sharing the loss of another and being supported when you face loss. In itself, this is a sound Scriptural principle. “Bear ye one another’s burdens, and so fulfill the law of Christ” (Galatians 6:2).

However, there are several possible dangers and abuses in insurance programs:

  • Trying to insulate yourself from any loss.

    If you insulate yourself against all losses, you may miss the lessons God wants to teach you through loss. You also may face bitterness or disillusionment if you fail to notice contract details and the insurance companies do not pay what you expected them to pay.

  • Attempting to use insurance as a savings program.

    As long as inflation is part of our economy, policies that promise end-of-life dividends probably will be a poor savings program. In most cases, it is wise to buy term insurance and put the difference into other investments.

  • Insuring away personal responsibility.

    Automobile liability insurance is a lawful, proper, and wise expense. However, do not allow dependence on insurance to tempt you to be irresponsible. When you cause damage in the lives of others, you can never fully repay them for the loss and the trauma you inflicted.

As you research various insurance policy options, consider your current needs and future plans. Seek the counsel of your spouse or family members. Pray and ask for God’s guidance.

Remember the words of Jesus Christ: “Seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you. Take therefore no thought for the morrow: for the morrow shall take thought for the things of itself. Sufficient unto the day is the evil thereof” (Matthew 6:33–34).

This material was developed from page 255 of the Men’s Manual, Volume II.

For Further Study

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