The High Cost of Idolatry

Can Insurance become a form of Idolatry? Please bear with me here, if you think I’m nuts, for the point of this question is not merely esoteric. It affects your pocketbook.

Where do you look for security? Would it be more threatening to not pay your tithe or not pay your premium?

You’ve probably heard the humorous story of the man who falls off the cliff. He grabs a root near the top and as he holds on for dear life yells, “Help! Can anyone help me?” The response comes, “I am God and I’ll catch you. Let go.” After a brief pause, he replies, “Is there anyone else up there that can help me?” We smile because we relate; faith is unnatural. Man has always been reluctant to trust God. Even in the Garden, Adam got suspicious. So we make our provisions.

In I Samuel 8, Israel was led by Samuel, God’s priest. However they wanted to be like the other nations and have a king to “go out before us and fight our battles”. They wanted something more concrete and visible; they wanted something that would make them feel safe; they wanted to do it the way those who did not know God did it; they wanted to walk by sight rather than faith. God didn’t like that, but He allowed it. Then He explained a very important consequence.

This king will “take your sons and make them serve, He will take your daughters … He will take the best of your fields and vineyards and olive groves … He will take a tenth of your grain and of your vintage … Your male and female servants and the best of your cattle[c] and donkeys he will take … and you yourselves will become his slaves.” You can have him, but the cost is high. One day you will regret it.

A major part of smart insurance buying is choosing an amount. While folks will agonize over getting the best rate, they often overbuy in amount. (Straining at gnats and swallowing a camel.) This is exacerbated in the typical sales context where there is no incentive to carefully bring out how one is insured already. If you forget God, insurance can become an idol, and you will tend to overuse it. Larry Burkett asked, “If you die, does God die with you?”

Most insurers are inefficient financial intermediaries. They have a very high cost of acquiring business, state premium taxes, and then like any corporation have overhead, profit to stockholder, etc. Most people pay more in than they get out.

We often compartmentalize our finances when choosing an amount of insurance, but it’s usually smart to carefully consider other resources that might help us. Would my wife work, might she downsize the house, is there a future inheritance, Social Security? Then use insurance sparingly rather than liberally.