Ask the Rabbi with Rabbi Chaim Mintz
I was planning on buying life insurance to ensure my family is taken care of in case something happens to me. Then my friend told me that one who has bitachon (trust in God) does not worry about what will happen in the future! However, I see it as a normal hishtadlus (effort), similar to working to make a living. Which perspective is correct?
Rabbi Chaim Mintz responds:
Two Different Questions
There are two types of life insurance: term life-insurance and whole insurance or endowment policies. As many halachic authorities — including Rav Moshe Feinstein — write, whole life-insurance is an investment and definitely permitted, as one can reap the dividends of the policy at any time, even if he does not die young. The question is applicable only regarding term life-insurance, which is paid only in the event of a premature death. Should one ensure that his family is covered in case of tragedy, or is that lacking bitachon (trust in God)?
Avoid Financial Disaster
I once discussed a similar question about buying health insurance with the renowned posek, Rav Moshe Feinstein. Should one buy health insurance to cover any potential doctor visit or hospital bill, or should one trust in Hashem (God) that he won’t get sick, or that money will be available to pay for treatment? Rav Moshe responded that a person should definitely purchase health insurance.
He explained that when something is a common occurrence, we have to take the initiative to prepare for it. People get sick, which requires going to the doctor, and sometimes a hospital visit as well, and most people cannot afford the cost of any extensive treatment they might need. An operation, a broken bone, or Heaven forbid a serious disease, can be very costly to treat. Since illnesses and accidents are fairly frequent occurrences, we need to take advantage of the means that are available to avoid the financial disaster these situations can cause.
Two Perspectives
When it comes to life insurance, one may claim that since most people do not die young, one is not required to be concerned that an uncommon tragedy will happen, making it unnecessary to buy life insurance. However, that is true only from an individual perspective.
If we look at the community as a whole, it is similar to health insurance. Although most people don’t die young, deathly illnesses and fatal accidents do unfortunately happen, and from the community’s perspective it is a common occurrence. And if no one will buy insurance, every time a person does die young, the community will have to assume the burden of supporting the family.
A Burden on the Community
In addition, as the Yiddish saying goes, one cannot have “bitachon oif yenem’s cheshbon — trust at the expense of others.” One cannot rely on his trust in Hashem, if it may have a detrimental effect on others. Unfortunately, when a young parent passes away, it becomes another long, hard campaign to raise enough money to make the family financially secure. While communities are usually generous and compassionate, people wonder and sometimes resent the fact that life insurance was not purchased to provide financial security for the family. Relying on trust in Hashem, in this instance, when this affects others, does not seem like the proper thing to do.
Thus, everyone would be required to take advantage of the methods that are available to avoid the financial disaster these situations can cause, such as life insurance, or one of the other methods, such as signing up for the organization, Areivim, where thousands partner to help each other in the event of tragedy.
In short: Whole life-insurance is definitely permitted because it is an investment. Term life-insurance is similar to health insurance, and should be recommended.
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