Has Insurance Replaced God's Assurance?

by Mr David Choo

Introduction

A US Christian website poses these questions:
- Would you fly a single-engine plane without a parachute?
- Would you go white water rafting without a life preserver?
- Would you travel the desert without a canteen?
- If so, would that show a lack of faith in God?

Its closing message: “You may say that is absurd, but many people consider insurance a lack of faith.”
Another website takes another tack as it seeks to promote a book entitled “Not by Chance: Devastating Times are a Test of the Faith”. The book tells of how God revealed Himself in Lynn Cochrane’s darkest times and brought her through her most trying circumstances and severest illnesses - polio, devastating accidents, major depression, unemployment and multiple sclerosis. The author must have overcome all these setbacks in her stride, probably with help, care and concern of others.
 

Another website starts with an arresting line: “Just trust God and it will be alright. Has anyone ever given you this empty advice?” It identifies the so-called competition to faith - job security, financial stability, medical insurance, disaster preparedness, retirement planning and asks: “Are you saying it is wrong to seek a secure job and stable income, to prepare for the future?” His answer: “No, not at all, but it is wrong to trust in these things.” And he cited the example of the rich farmer who was called a fool by God in Luke 12:18-21 because he trusted in his material wealth.

I have just given a few examples of the wide range of views on the subject.
This serves as a warning that we should not take this subject lightly or flippantly. Individuals and families and churches will be affected greatly by their attitude towards insurance.
Recently, I read this heading: “Mothers prefer changing diapers to looking at life insurance”. Two-thirds of the surveyed mums by a Sydney- based researcher admitted this, thus, leaving a lot of families uninsured. If we were to ask for opinions here, we would likely also get a range and we may all end up more confused. My approach is to look at what the Bible says and see whether we can construct a Biblical viewpoint.
 

1. What the wise preacher says
Let me start with the reputed wisest man only surpassed by Jesus – King Solomon. He observed a few grievous evils under the sun.
a) Wealth lost through some misfortune
“I have seen a grievous evil under the sun:
wealth hoarded to the harm of its owner,
or wealth lost through some misfortune,
so that when he has a son
there is nothing left for him.” (Ecclesiastes 5:13-14)

Christians generally agree that hoarding is a moral wrong, but here we have another grievous evil of a man who loses wealth through some misfortune and cannot pass it on. The misfortune is not stated but does not refer to early death here, perhaps, seizure of the wealth by enemies or king, famine, etc.
b) A stranger enjoys your wealth
“I have seen another evil under the sun, and it weighs heavily on men:
God gives a man wealth, possessions and honour, so that he lacks
nothing his heart desires, but God does not enable him to enjoy them,
and a stranger enjoys them instead. This is meaningless, a grievous evil.” (Ecclesiastes 6:1-2)

Here, we see that God is directly behind the scene. So, would preventing the things from happening thwart God’s purpose or, in any way, limit God’s power or freedom? But if God is almighty and has sovereign power over all of creation, is there anything man can do to deny His purpose and will?
 

c) Time and chance
“I have seen something else under the sun:
The race is not to the swift
or the battle to the strong,
nor does food come to the wise
or wealth to the brilliant
or favour to the learned;
but time and chance happen to them all.” (Ecclesiastes 9:11)
The general rule is that the race is won by the swift and the battle won by the strong, but time and chance can cause a different result.
 

The word “fortuitous” is used as an important principle of insurance. It means happening by chance or accidental. It excludes anything that can be caused or orchestrated by oneself, for example, self-inflicted injury which is a frequent exclusion in insurance. Suicide is not fortuitous but allowed in life insurance as a concession if it takes place more than a year or two years after taking the life insurance policy.
When we believe that time and chance can take place irrespective of the moral condition of the people, we have to ask: “What is the best way not to leave things to chance?” An example of an accident is the collapse of the tower of Siloam, which killed 18. (Luke 13:4) Jesus said it is not because these were sinners more guilty than all the others living in Jerusalem and were judged for their sins. The earthquake at Christchurch would have affected thousands of Christians, who could be in no worse spiritual or moral conditions than other New Zealanders in Auckland.
Under the over arching doctrine of God’s sovereignty, we must view chance as still within His knowledge and control and, if something does happen, it must be either directly caused by God or permitted to happen by God.
 

The question for us is: “Knowing that there are fortuitous events, should not we adopt the right risks management which involves risks avoidance, risk maximisation, risk transference and risk absorption?” Insurance is under risk transference as we basically transfer the financial impact of risks to the insurer. If we accept that bad things do happen to good people, we have to ask whether God intends us to suffer our consequences or whether we should exercise God-given wisdom and prudence to avoid, reduce or mitigate the consequences.
 

d) Evil times
“Moreover, no man knows when his hour will come:
As fish are caught in a cruel net,
or birds are taken in a snare,
so men are trapped by evil times
that fall unexpectedly upon them.” (Ecclesiastes 9:12)
Here, the Preacher speaks of death and tragic events, which happen unexpectedly. The seven years of famine, which came during the reign of Joseph as Prime Minister of Egypt and devastated a vast region, including Jacob’s area, would certainly qualify as evil times. Joseph was given the interpretation of the Pharaoh’s dream in order to save the people in general and Jacob’s clan in particular.
When we are blessed with plenty, should not we save some for the future, which is anything but certain?
 

e) Death
“It is better to go to a house of mourning
than to go to a house of feasting,
for death is the destiny of every man;
the living should take this to heart.” (Ecclesiastes 7:2)
Is this advice only for us to live with eternity in view? Surely so, but should not parents knowing the certainty of death but the uncertainty of its timing, provide for their children in case of their sudden demise?
Ecclesiastes 8:8 says:
“No man has power over the wind to contain it
so no one has power over the day of his death”.

I find Proverbs 13:22 heart-warming now that I am a grandfather: “A good man leaves an inheritance for his children’s children, but a sinner’s wealth is stored up for the righteous.”
It is a blessing of God when He enables us to provide not only for our family but also to lay a good foundation for future generations. This involves not only a good spiritual legacy, but financial inheritance as well, serving like the wells dug by Isaac or Jacob, which continue to bless generations to come.
 

2. How to handle these grievous evils?
Knowing that there are at least five grievous evils that assail man under heaven, what should we do? Would a modern-day wise Preacher addressing these evils give advice on how to handle them?
The wise Preacher concluded that the wise thing to do is to “fear God and keep His Commandments for this is the whole duty of man”. (Ecclesiastes 12:13) The wisdom of this advice rests on the doctrine of God’s sovereignty. God has power over every aspect of our life. Even “the king’s heart is in the hands of the Lord; He directs it like a watercourse wherever He pleases.” (Proverbs 21:1)
“There is no wisdom, no insight, no plan that can succeed against the Lord.” (Proverbs 21:30)
“The Lord works out everything for His own ends - even the wicked for a day of disaster.” (Proverbs 16:4)
The point is that no man can protect himself entirely from God, whether by his billions in savings, insurance or bodyguards. Israel sought protection from making unholy political alliances but God still has His way. So, even if the motive of taking insurance is to protect oneself for one who does not believe in God, God still has full power to work out His judgments. My point is that no one can protect himself against God’s power and insurance should not be taken for that reason.
 

There are two fundamental questions to ask:
a) What does it really mean to trust God and to live by faith?
b) Is it pleasing to God for us to do well, not only spiritually but also materially? Specifically, given that we fear God, is prosperity one of the blessings of God?
a) Trusting God and living by faith
Trusting God means to know deep in our heart that our life is from God, our times are in God’s hand; without Him, we are nothing and can do nothing, and without Him, whatever we do will be in vain.
Unless the LORD builds the house,
its builders labour in vain.
Unless the LORD watches over the city,
the watchmen stand guard in vain.
In vain you rise early
and stay up late,
toiling for food to eat -
for He grants sleep to those He loves. (Psalm 127:1-2)
 

Trusting God as our provider, we do not need to be anxious about food, clothing or shelter. (Matthew 6:31) We learn to live in dependence on God in humility and prayerful dependence treating what we have as stewards, not owners. We learn not to trust in men, in horses, or swift escape, or chariots (power). We know we are powerless against our enemies unless God guards us.
But trusting in God does not mean not having to work or plan or prepare or do training. It means to enquire of the Lord and to have faith but David still fights Goliath. Israel still has to enter the Promised Land to fight the enemies. Paul said that he who does not work should not be allowed to eat. You still have to prepare the ground, sow, water and God gives the harvest.
Proverbs teaches the value of hard work, prudence, thrift, diversifications, being skilled, and seeking counsel and guidance. It appears to me there are some Christians who are more Psalm Christians and some who are more Proverbs Christians. Psalm Christians pay more attention to their walk and talk with God and like to meditate and pray. Proverbs Christians like to concentrate on employment, business, financial matters, politics and seeking success and prosperity. The truth is that one needs to be both Psalm Christian and Proverbs Christian. Proverbs Christians would have no problem taking insurance to minimise the financial impact of risks like fire, disability, professional negligence or error and omission, or personal and public liabilities.
 

But what is the real intention of insurance? It is to prevent losses of income, property, legal suits, and death of breadwinners. So, the real motive is to remain in the financial position that you are presently at. It is not the purpose of insurance to make one rich but to protect your present wealth or status. This principle of reimbursement applies to most insurance. The only exception is life insurance, which seeks to protect you against the loss of your economic value, not your present value only. For example, you have graduated and plan to work up to age 65 to provide an income to raise a family. The total salary which you hope to earn is a measurement of your economic value. If nothing adverse happens to you, the sum of money will be earned and goes to support your family.
So, we ask the second fundamental question:
 

b) Is wealth a blessing of the Lord?
This subject requires a book but for today, let me state that prosperity is one of the blessings of God but it can also be a cause of a man’s fall because the love of money is a root of all evil. Let me focus on wealth, which is a blessing of the Lord and not from exploitation of others. It is not ill-gotten gains or at the expense of your physical health and your spiritual health.
“The blessing of the LORD brings wealth,
and He adds no trouble to it.” (Proverbs 10:22)
“Misfortune pursues the sinner,
but prosperity is the reward of the righteous.” (Proverbs 13:21)
“A faithful man will be richly blessed,
but one eager to get rich will not go unpunished.” (Proverbs 28:20)
But there is one important caveat for wealth to be a blessings - it must be used wisely. Examples:
“Honour your Lord with your wealth”. (Proverbs 3:9-10)
“Do not withhold good from those who deserve it,
when it is in your power to act.” (Proverbs 3:27)
Hoarding wealth is a sin. There are also warnings against self-indulgence to the neglect of the needy - the parable of the rich man and Lazarus.
My belief is that the super wealthy will not be concerned about insurance and the poor do not have the money to even think of insurance. It is those in the middle who need to address the matter.
 

3. How should a person above poverty line but not rich enough to self-insure treat the subject of insurance?
Treat insurance as a relatively modern invention to meet certain needs just the way you treat other modern inventions like computers, cars and washing machines. Perhaps, if we look at how insurance started, we would see what it is meant to do.
One American textbook claimed that the idea of life insurance came about when the church sought ways to provide for the full-time workers’ medical needs and retirement. Funds were set aside and slowly the idea became applied to others. Funeral societies were cited as the beginning of insurance in other societies. The term underwriter has an interesting origin. When England sought products from abroad, ship owners looked for investors who were willing to share the cost and risks of the overseas venture.

Those who were willing to do so were asked to write their names below the named venture, and hence, the term “underwriters”.
Insurance is built on a few principles:
- the pooling of resources and risks
- the law of probability or large numbers
- the contract between the insurer and the client.
There were ways to take care of bereaved families in the past – the family, the clan, the church but insurance is the modern equivalent, partly because past ways had no pooling of resources, insufficient numbers and no certainty of contract.
The examples of events a person can insure against are:
 

For individuals - death (premature death), disability, sickness and legal suits (professional indemnity, personal liability)
For property - fire and other perils, theft or burglary
For motorcars - fire, theft, and third party such as injury to persons, damage to property.
There are certain covers, which are required by law, for example, motor policy and workmen injury insurance.
 

For voluntary policies, why would a Christian want to insure even though he trusts in God who is sovereign and good? No matter how spiritual or moral he is, “bad” things still happen to good people. He cannot prevent many things from happening but can mitigate the financial consequences. For example, a person who is the breadwinner is run down by a car. What will happen to the family? There will be financial consequences and the family must provide for themselves or depend on charity. The early church gave instructions on the support of widows, who did not have family members to support them and depended on the church to support them (see 1 Timothy 5). Churches should stand ready to do this.
 

The other way is to advise their church members to insure themselves so that the financial outlay can be defrayed by the insurance companies. The basic building block of society and the church is the family. If every family exercises financial responsibility, there will be less needy saints. The church budget can then be spent on missions and evangelism. Rarely will insurance be sufficient to cover all of the financial needs, so church members will still be able to exercise love and contribute to the care and concern for the bereaved family.
Will a person who is insured live in lesser dependence on God? Food and clothing are basic necessities and we are commanded not to be anxious about such things. So, having insurance to replace income is no different. We still need to depend on God and pray earnestly for God’s blessings in many other areas - our health, service, teaching and preaching of God’s Word, witnessing, and relationships in families, church and employment.
God can still shake the nation, individuals, and families in so many ways. The wealthy are commanded not to be arrogant and trust in their uncertain riches. (1 Timothy 6:17-19) God can still take away the source of our income. God can allow us to go through many other kinds of hardships. War is the ultimate that can happen to Christians besides persecution and Christians are thus placed on their spiritual tiptoes to look to God in dependence.
 

4. Teaching financial responsibility
Why is insurance a better way than for the church to take care of her members? It is because it teaches members financial responsibility.
For a church where everyone is just eking out a living, the church body can rally together to help the one who is in even more dire need. Where the majority of members are financially alright, it is good to teach them financial responsibility, or else they may spend too freely and the church ends up supporting their families in the event of a calamity. Christians generally do not mind helping those, who are truly indigent but will not be happy to help those who are freeloaders, spendthrifts or wastrels.
 

a) Insurance is cost-efficient
With the proper advice, you can obtain the appropriate and suitable products, which can cover the risks faced by individuals and families. Much time can be saved to raise funds for emergencies and valid questions can be avoided like rightness, fairness, and adequacy of the help extended. Not making use of insurance is like not making use of modern inventions like multimedia, social media and modern banking such as GIRO. You can still wash your dishes or clothes manually or send letters by post but you will lose time, energy and patience as well.
Having sufficient financial resources at the time you need them enables you to free up your current resources. Instead of relying just on your savings, you can use insurance as a safety net and use your savings for causes you believe in, for example, giving to missions and the needy. The law of large numbers, commonly called the law of average, is fundamental to insurance. For a group of 200 people to bear the financial loss due to a premature death of one of its members is heavier than for a group of 200,000. The spreading of risk is achieved more efficiently through insurance.
 

b) Insurance is more certain for long-term needs
There is more certainty in depending on insurance for long-term care and long-term financial needs. Friendly giving is okay for immediate and short-term needs such as during a funeral and perhaps, for a few months after. It is not easy for friends and fellow Christians to give financial support long-term as it requires regular contact.
Insurance is a contract and can be enforced whereas charity cannot be enforced. Charity is not easy for the person of integrity to receive. The recipient can lose self-respect, if he has to depend on charity, especially for the long-term.
 

State welfare is not sufficient in Singapore and will never be under the present government which promotes self-reliance. Someone has to pay for inevitable expenses, which result from life’s tragedies, emergencies and disasters.
God sees everything and oversees everything but He looks at how we use His resources to provide for ourselves, our families and others. Our government established the Central Provident Fund and has implemented many useful schemes to help us provide for our medical expenses, our property ownership and retirement. The government does not think it is good to be a welfare state and we are exhorted to take care of ourselves.
Application and conclusion
How should individuals and families view events, which can drain them financially, like surgery, long-term illness, a breadwinner’s death, fire, legal suits etc?
Christians are exhorted to trust in God and acknowledge God and to honour God.
“Trust in the LORD with all your heart
and lean not on your own understanding;
in all your ways acknowledge Him,
and He will make your paths straight.” (Proverbs 3:5-6)
“Honour the LORD with your wealth.” (Proverbs 3:9)
“Do not withhold good from those who deserve it.” (Proverbs 3:27)
“He mocks proud mockers
but gives grace to the humble.” (Proverbs 3:34)
Trust in God, however, does not exempt us from hardship, struggles and sickness. We learn this from Scriptures and experience. Wisdom, knowledge and prudence teach us to walk with God, do good works for God and to love God and our neighbour.
 

It is said that insurance is an act motivated by love and responsibility to protect ourselves and loved ones from the financial consequences of events mostly beyond our control.
Good health and long life are blessings of God. But we have to say with Job: “The Lord gave and He has taken away; may the name of the Lord be praised.” (Job 1:21)
We are commanded to fear God and to keep His commandments to avoid spiritual and moral pitfalls and to do good works. We are also taught to acquire wisdom, understanding, knowledge and counsel to be good stewards of God-given resources and to use them well, and to avoid financial pitfalls as well. We should not be driven by fear and greed like unregenerate people, but by trust in God and having godly contentment.
 

We should be both Psalm and Proverbs Christians. Insurance is a neutral invention, much like other modern inventions, and the attitude and motive of the individual will decide whether it replaces trust and belief in God’s providence. Or it is a means to prepare for possible eventualities and in fact, enables you to use your financial resources better for God’s kingdom.
Families and churches should still rally round their members in times of need because the fact is that most people are underinsured. Our love, care and concern for those who fall into bad or evil times are needed, whether the person concerned is insured or not insured.
On the other hand, we should not go to the extreme of insuring ourselves to the hilt out of anxiety and fear of the future. We should also beware of storing up treasures on earth, which is tantamount to hoarding and self-insurance.
 

(This talk was given at the Finance Christian Fellowship meeting on 18
March 2011 at the GCF Centre)