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Key Scripture: Spread your protection over them, that those who love your name may rejoice in you. - Psalm 5:11

Life insurance is a foundational stone in your financial building. Its primary purpose is to guarantee that your family will not only be able to survive financially, but also to maintain their present standard of living. Some questions you need to consider are:

How much insurance coverage do I really need?
How much insurance can I afford to buy?
What type(s) of insurance policy should I buy?
Is my need for this insurance short-term or long-term?
How does my insurance fit into my overall financial plan?

As you consider these questions, remember that insurance agents must make a profit. They may suggest only one type (i.e., a whole-life policy) because it pays a higher commission. Perhaps they do not know your individual situation or have misunderstood your needs. But God has made you the steward over your finances, not an insurance planner. You must become familiar with the different types of insurance available so that you can make a financially sound decision. As you will see from the following chart, there are advantages and disadvantages to all types of insurance. Therefore, you need to pick a plan that best suits your individual situation.

To properly assess your life insurance, complete Worksheet 6-A, "Your Life Insurance," which appears at the end of this chapter.

See Table C, "Types of Insurance Products," to compare the advantages and disadvantages of each.

While your reason for insurance may be protection, you cannot possibly foresee every circumstance that could happen. Therefore, it is better to think of your insurance purchase as provision for your family. This view takes away any fear and keeps your faith for protection where it belongs—in God. "The Lord is good, a refuge in times of trouble. He cares for those who trust in him" (Nahum 1:7).

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