Ep. 083 - How Much Life Insurance Do You Really Need? A Biblical Perspective

Show notes

Psalm 20:7 tells us, “Some trust in chariots and some in horses, but we trust in the name of the Lord our God.” Life insurance can be helpful, but it was never meant to replace the peace and provision that only God can give.

Life Insurance as a Stewardship Tool

Life insurance, at its best, is simply a temporary tool to help provide stability for loved ones if the unthinkable happens. It gives families room to grieve without immediately being burdened with financial stress. In this way, it can be an act of love and good stewardship.

However, there are dangers. We can over-insure ourselves, thinking that enough money will protect our families from every hardship. Too much coverage can insulate loved ones from depending on God and community, or even create unintended challenges like isolation, conflict, or poor stewardship of unexpected wealth.

How Much is Enough?

The key question is not “How much can I get?” but “How much is enough?” Each family’s needs will look different. Consider factors like:

• Mortgage payments or other debts


• Children’s education plans


• The surviving spouse’s ability to earn income


• Long-term lifestyle needs

As seasons of life change, your insurance needs may also change. A young family with small children may need significant coverage, while later in life—when debts are paid and children are independent—the need often decreases.

Types of Life Insurance

There are many kinds of policies, but three are most common:

• Term Life Insurance: Covers you for a set period (10, 20, or 30 years). It’s often the most affordable and practical option for most families.


• Whole Life Insurance: Provides lifelong coverage, with higher costs and a cash value component.


• Universal Life Insurance: A flexible but more complex form of permanent insurance that can include investment features.

For many families, term life insurance is sufficient. More complex policies may only make sense in limited circumstances.

More Than Finances

Ultimately, no insurance policy can replace your presence in your family’s life. Relationships, faith, and community are far more valuable than a payout. Estate planning and financial stewardship matter—but cultivating healthy spiritual and relational foundations is even more important.

Questions to Consider

1. Do I see life insurance as a tool for stewardship, or have I been tempted to place ultimate trust in it?


2. What does “enough” coverage look like for my family’s current season of life?


3. How might over-insuring create challenges for my spouse or children down the road?


4. Am I also investing in the spiritual and relational health of my family, not just financial stability?


5. Have I invited God into my financial planning, asking Him what faithful stewardship looks like?

Timestamps:

00:00 – Introduction: Why talk about life insurance?
01:25 – Trusting God vs. trusting financial products
03:10 – Life insurance as a tool for stewardship
05:05 – The danger of over-insuring your family
07:40 – How much coverage do you really need?
10:15 – Term life insurance explained
12:05 – Whole and universal life insurance explained
14:30 – Shifting needs in different life stages
16:45 – More than money: faith, family, and relationships
18:50 – Closing thoughts: God as our true security

Bible Passage: Psalm 20:7 (ESV)

7 Some trust in chariots and some in horses, but we trust in the name of the Lord our God.

Want to Take the First Steps of Biblical Stewardship?

Download our free Guide to Biblical Giving,
and we’ll unpack what the bible says about tithing, giving to the poor,
or giving away everything you own for the sake of the Kingdom.

Featured Links

• [Free] Guide to Biblical Giving
• Our Firm: Retirement Planning Services

Listen

Subscribe