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Life insurance: If there is someone is relying on your income, you need life insurance.
Your wife should also be insured, even if she doesn't work.  The need to insure her comes from the expenses of replacing her for childcare and housework. And if she does work (or is the breadwinner), then you need to insure her for income replacement - don’t be too macho to insure her.

How much to get?
First figure out how much you live on for real.

One school of thought is to get enough life insurance that you don't use up that payout, only live on the income that money generates.  So to make $80,000 of income at 5%, you need an initial investment (insurance amount) of $1,600,000 or over 1.5 million dollars! This piece of advice makes very little sense in today's low interest rate environment - since to chase a 5% return you need to risk the principal.

A better plan would be to estimate how many years of income replacement or expense coverage you need for each spouse. A big part of the need for income comes from child related expenses, which will end after the children reach a certain age. Or, at younger ages it is reasonable to expect that a widow/widower could get remarried, and therefore won't need as many years. Take all this into consideration and consult a financial adviser if you can afford it.

Another plan.  She'll be able to go to school, or otherwise get set up for a high paying job with a few years of full support.  So you only need a few years’ worth of income.  Let's say $80,000 X 5 years = $400,000.  Realize that her expenses without a husband might be higher than now as a couple.  (babysitter, tutors, etc) 


Term insurance vs Whole life
Term insurance is the cheapest and simplest.  You pay a premium and  if chv”sh the insured person dies, the beneficiary gets the insurance amount. The higher the risk a person is, the higher the premium.  So people with worse health  will pay more than healthy people for the same amount of insurance, and older people will pay more than younger people.
Level term.  One popular type of term insurance has a level premium for a fixed number of years. Many people prefer this to the traditional type of term insurance where the premium each each year pays for coverage only in that year (and as a result the premiums increase every year, because you are aging). In contrast, a level premium term insurance policy has an unchanging premium amount that is guaranteed for a specific number of years. As a result of the design you are overpaying in the early years of the policy to subsidize your cost in the later years. Popular guarantee periods are 10, 20 or 30 years.  As with any insurance, it pays to get one while you are healthy to lock in the lowest rate possible (in general, health only declines, you rarely hear of people getting healthier with age).
Whole life has a level premium that is guaranteed not to increase for as long as you live. Because of insurance laws in the US, this type of insurance policy must always have a "cash value", which is the amount of money you get back if you cancel the policy. That makes Whole Life a much more expensive choice relative to pure insurance coverage (where you'd get nothing back if you cancel) and therefore a bad choice for most people who are not rich (this is complicated to explain in great detail, but it is an effective summary of who is most likely to see good value in buying Whole Life). One fringe benefit of having a cash value in Whole Life is that you have saved money which can be used for your retirement or any other purpose if you are still alive.  For most people though, other savings vehicles will be better.
Universal life is very similar to whole life, in that it is meant to provide insurance coverage for as long as you live (as opposed to Term, which is meant to for a short to medium period of time). The most important difference is that the premium rates for Universal Life are not guaranteed, unlike Whole Life which is completely guaranteed. The concept behind Universal Life is that the insurance company tells you all the charges you are paying for and lets you pay as much or as little as you want for the coverage. Anything extra that you pay goes into an account that can earn interest, and as long as that account doesn't run out of money you stay insured.
Variable Life is an offshoot of Universal Life. The difference is that instead of the extra money going into an account that earns interest, you can choose to invest the extra money in mutual funds. Take my word as an expert in insurance that Variable Universal Life is only for the most investment oriented people (meaning that they barely care at all about the insurance part of the policy). If you are trying to decide on Term or Variable, the answer is always Term.

How long a Term Insurance companies make tons of money on people who buy 30 year terms and then let it lapse after 10 years, since they paid 30 year rates for those 10 years.  Consider a long term Term the equivalent of insuring against the possibility you will be uninsurable in 10 years.  Consider also that you would be able to convert the short term Term into a whole life policy at that time regardless of insurability.

Life insurance has some very favorable tax treatment on the cash value (or account value), which is a big selling point, especially for people in certain tax brackets who have all but run out of tax advantaged places to save money. The exact details are very technical and could not be fairly explained without making this wiki extremely long.

Reevaluate your situation and the amount of insurance periodically.  As things change- income, spending, family additions-  the amount of coverage you need will need tweaking.

In addition to buying insurance, don't forget to set up plans for how your beneficiaries can use the insurance money to live with their needs taken care of. Providing for your family in case of a tragic event is perhaps as selfless an act as a person can do, don't do it halfway! Make sure there will be money AND a plan for how to live on it. In my experience I have seen all types of unqualified people get involved with "helping" a family live off huge amounts of money and getting it wrong 10 times out of 10.

Plan for guardians to care for your children if cv"sh both parents are unavailable.


« Last edited by henche on July 09, 2014, 10:40:28 PM »

Author Topic: Do you have life insurance?  (Read 71178 times)

Offline good sam

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Re: Do you have life insurance?
« Reply #40 on: January 30, 2014, 04:27:43 PM »
Dont have but i am going to start looking into it.

Where do i start? Of course i will get for my wife... theres no reason not to.
I wouldn't say no reason. It costs money. You have to decide if it makes sense for you.
If you don't care why would you comment?
HT: DMYD

Offline Toasted

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Re: Do you have life insurance?
« Reply #41 on: January 30, 2014, 04:28:31 PM »
Should DDF'ers have a higher or lower premiums and why?

1. Higher. Because they will buy airline tickets to Honolulu while driving when the glitch tweet comes in (Raise their Auto premiums too).

2. Frequent vacations reduce heart disease by 30%! Source


Should that be a new thread?

Offline DMYD

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Re: Do you have life insurance?
« Reply #42 on: January 30, 2014, 04:29:50 PM »
Whatever happened to that Israeli plan, I think it was called Areivim?
I think there is one in the US too, but I think they give Money per Child if and when they give.

Offline Achas Veachas

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Re: Do you have life insurance?
« Reply #43 on: January 30, 2014, 04:31:27 PM »
Dont have but i am going to start looking into it.

Where do i start? Of course i will get for my wife... theres no reason not to.
I wouldn't say no reason. It costs money. You have to decide if it makes sense for you.
Here's how my accountant explained it to me. If CH"V something happens to your wife, even if she doesn't work, you now need to pay someone to take care of your children while you work.

Offline DMYD

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Re: Do you have life insurance?
« Reply #44 on: January 30, 2014, 04:36:17 PM »
I wouldn't say no reason. It costs money. You have to decide if it makes sense for you.
Hmm If a person cant afford to pay a cheap premium then he diffidently cant afford  not to have Insurance! (if he cant pay $50 a month for Insurance then where is the about $2500 a month going to come from if this person dies?)

Offline DMYD

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Re: Do you have life insurance?
« Reply #45 on: January 30, 2014, 04:37:29 PM »
Here's how my accountant explained it to me. If CH"V something happens to your wife, even if she doesn't work, you now need to pay someone to take care of your children while you work.
+1

Online Let3

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Re: Do you have life insurance?
« Reply #46 on: January 30, 2014, 04:38:39 PM »
Deciding between policies or deciding to get insurance?
I guess both!
Just had a kid, and just started thinking about it.
My wife doesn't like thinking about it:)

I was also just told by a family member who is a broker that living primarily in Israel, and not having a real job can both be an issue in getting well priced life insurance...
(And since we don't have jobs- don't know if we can afford it right now)
So I have to decide if worth it to wait a year or two till we move back to the states and get jobs .

My rebbe just sent me today a email with  two interesting stories:
 
1-"There is a really beautiful story about Rav Aryeh Levine in Rav Simcha Raz's book. Someone was trying to persuade Rav Aryeh to get life insurance but he refused. The man persisted saying how will your family survive if chas vesholom something was to happen to you

He replied that were he to die early and go up to the Heavenly Beis Din he would petition that while it is true that he has done many things wrong and maybe does not deserve to live any longer, what have his wife and family done wrong to be denied their husband and father to financially support them. And this would be a very persuasive argument. Until from the side a malach would step forward holding a life insurance document and say, there is no reason to worry about the family, he has life insurance! And then the beis din will decide to keep him dead!"

2-"For the record, I asked Rebbe ((rabbi Berkowitz of Jerusalem kollel)) myself about 7 years ago (living in Chu"l). He said its neither a chiyuv nor assur. I told him I was having trouble and it would be costly and I could instead give maaser (financially it wasn't shayach to do both and I was definitely patur from giving maaser at the time). He told me that doing that would be a much better insurance policy."
« Last Edit: January 30, 2014, 04:46:55 PM by Let3 »

Offline Menachem613

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Re: Do you have life insurance?
« Reply #47 on: January 30, 2014, 04:40:57 PM »

I guess both!
Just had a kid, and just started thinking about it.
My wife doesn't like thinking about it:)

My rebbe just sent me today a email with  two interesting stories:
 
1-"There is a really beautiful story about Rav Aryeh Levine in Rav Simcha Raz's book. Someone was trying to persuade Rav Aryeh to get life insurance but he refused. The man persisted saying how will your family survive if chas vesholom something was to happen to you

He replied that were he to die early and go up to the Heavenly Beis Din he would petition that while it is true that he has done many things wrong and maybe does not deserve to live any longer, what have his wife and family done wrong to be denied their husband and father to financially support them. And this would be a very persuasive argument. Until from the side a malach would step forward holding a life insurance document and say, there is no reason to worry about the family, he has life insurance! And then the beis din will decide to keep him dead!"

2-"For the record, I asked Rebbe myself about 7 years ago (living in Chu"l). He said its neither a chiyuv nor assur. I told him I was having trouble and it would be costly and I could instead give maaser (financially it wasn't shayach to do both and I was definitely patur from giving maaser at the time). He told me that doing that would be a much better insurance policy."

I wanna barf.

Offline Achas Veachas

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Re: Do you have life insurance?
« Reply #48 on: January 30, 2014, 04:42:36 PM »
I guess both!
Just had a kid, and just started thinking about it.
My wife doesn't like thinking about it:)

My rebbe just sent me today a email with  two interesting stories:
 
1-"There is a really beautiful story about Rav Aryeh Levine in Rav Simcha Raz's book. Someone was trying to persuade Rav Aryeh to get life insurance but he refused. The man persisted saying how will your family survive if chas vesholom something was to happen to you

He replied that were he to die early and go up to the Heavenly Beis Din he would petition that while it is true that he has done many things wrong and maybe does not deserve to live any longer, what have his wife and family done wrong to be denied their husband and father to financially support them. And this would be a very persuasive argument. Until from the side a malach would step forward holding a life insurance document and say, there is no reason to worry about the family, he has life insurance! And then the beis din will decide to keep him dead!"

2-"For the record, I asked Rebbe ((rabbi Berkowitz of Jerusalem kollel)) myself about 7 years ago (living in Chu"l). He said its neither a chiyuv nor assur. I told him I was having trouble and it would be costly and I could instead give maaser (financially it wasn't shayach to do both and I was definitely patur from giving maaser at the time). He told me that doing that would be a much better insurance policy."
I find it hard to believe a Rov these days would advise against getting life insurance, my Chosson teacher tried convincing us to get while we were still engaged.

Offline Freddie

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Re: Do you have life insurance?
« Reply #49 on: January 30, 2014, 04:43:08 PM »
If you are a married man with children, it is simply cruel to not have life insurance. I have a 20 year term for 2mil in coverage, costs me 140/month. It is all money I will never get back, but I am happy with that. As for "whole" there are such better investments. Do your investing separately.

Offline good sam

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Re: Do you have life insurance?
« Reply #50 on: January 30, 2014, 04:44:36 PM »
Hmm If a person cant afford to pay a cheap premium then he diffidently cant afford  not to have Insurance! (if he cant pay $50 a month for Insurance then where is the about $2500 a month going to come from if this person dies?)
It's not about afford.  I can afford to pay $2 a day to shelter homeless cats in Namibia, doesn't mean I'm going to.
If you don't care why would you comment?
HT: DMYD

Offline Toasted

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Re: Do you have life insurance?
« Reply #51 on: January 30, 2014, 04:44:54 PM »
I guess both!
Just had a kid, and just started thinking about it.
My wife doesn't like thinking about it:)

My rebbe just sent me today a email with  two interesting stories:
 
1-"There is a really beautiful story about Rav Aryeh Levine in Rav Simcha Raz's book. Someone was trying to persuade Rav Aryeh to get life insurance but he refused. The man persisted saying how will your family survive if chas vesholom something was to happen to you

He replied that were he to die early and go up to the Heavenly Beis Din he would petition that while it is true that he has done many things wrong and maybe does not deserve to live any longer, what have his wife and family done wrong to be denied their husband and father to financially support them. And this would be a very persuasive argument. Until from the side a malach would step forward holding a life insurance document and say, there is no reason to worry about the family, he has life insurance! And then the beis din will decide to keep him dead!"

2-"For the record, I asked Rebbe ((rabbi Berkowitz of Jerusalem kollel)) myself about 7 years ago (living in Chu"l). He said its neither a chiyuv nor assur. I told him I was having trouble and it would be costly and I could instead give maaser (financially it wasn't shayach to do both and I was definitely patur from giving maaser at the time). He told me that doing that would be a much better insurance policy."

So make sure you don't know hatzoloh's phone number, this way you'll never have an emergency. Right?

Don't buy a shovel and it won't snow.

Don't get health insurance and you'll never get sick.

Don't read DansDeals and Hashem will ensure you're rich enough to pay full price ;).

Gimme a break sir.

Offline DMYD

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Re: Do you have life insurance?
« Reply #52 on: January 30, 2014, 04:45:38 PM »
I guess both!
Just had a kid, and just started thinking about it.
My wife doesn't like thinking about it:)

My rebbe just sent me today a email with  two interesting stories:
 
1-"There is a really beautiful story about Rav Aryeh Levine in Rav Simcha Raz's book. Someone was trying to persuade Rav Aryeh to get life insurance but he refused. The man persisted saying how will your family survive if chas vesholom something was to happen to you

He replied that were he to die early and go up to the Heavenly Beis Din he would petition that while it is true that he has done many things wrong and maybe does not deserve to live any longer, what have his wife and family done wrong to be denied their husband and father to financially support them. And this would be a very persuasive argument. Until from the side a malach would step forward holding a life insurance document and say, there is no reason to worry about the family, he has life insurance! And then the beis din will decide to keep him dead!"

2-"For the record, I asked Rebbe ((rabbi Berkowitz of Jerusalem kollel)) myself about 7 years ago (living in Chu"l). He said its neither a chiyuv nor assur. I told him I was having trouble and it would be costly and I could instead give maaser (financially it wasn't shayach to do both and I was definitely patur from giving maaser at the time). He told me that doing that would be a much better insurance policy."
So your saying that all the people that die have life Insurance? because I'm not hearing that people are getting up from death so assume the Malachem  keep on bringing Life Insurance documents!

Online Let3

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Re: Do you have life insurance?
« Reply #53 on: January 30, 2014, 04:48:18 PM »
If you are a married man with children, it is simply cruel to not have life insurance. I have a 20 year term for 2mil in coverage, costs me 140/month. It is all money I will never get back, but I am happy with that. As for "whole" there are such better investments. Do your investing separately.
I happen to agree,
Which I why I just added to my post ...

"I was also just told by a family member who is a broker that living primarily in Israel, and not having a real job can both be an issue in getting well priced life insurance...
(And since we don't have jobs- don't know if we can afford it right now)
So I have to decide if worth it to wait a year or two till we move back to the states and get jobs ."

Offline DMYD

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Re: Do you have life insurance?
« Reply #54 on: January 30, 2014, 04:49:01 PM »
It's not about afford.  I can afford to pay, doesn't mean I'm going to.
If there is enough of a big reason to pay $2 a day to shelter homeless cats in Namibia you would pay!

Offline CountValentine

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Re: Do you have life insurance?
« Reply #55 on: January 30, 2014, 04:50:59 PM »
Only a matter of time before religion was brought in.
Only on DDF does 24/6 mean 24/5/half/half
Dow Jones Industrial Average Tops 40000 for the First Time

Online Let3

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Re: Do you have life insurance?
« Reply #56 on: January 30, 2014, 04:52:52 PM »
So make sure you don't know hatzoloh's phone number, this way you'll never have an emergency. Right?

Don't buy a shovel and it won't snow.

Don't get health insurance and you'll never get sick.

Don't read DansDeals and Hashem will ensure you're rich enough to pay full price ;).

Gimme a break sir.
None of the above were my personal opinion- so I don't care for you to argue...
I put them in quotation marks as they are direct quotes from email corespondents of ppl in the Jerusalem kollel on this issue...

Offline Freddie

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Re: Do you have life insurance?
« Reply #57 on: January 30, 2014, 04:53:19 PM »
Only a matter of time before religion was brought in.

Count, you have to understand. For Jews, religion doesn't get brought in. Torah doesn't just tell us how to lead our ritualistic lives. Torah is meant to give us guidance in the nitty-gritty details of life.

Online Let3

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Re: Do you have life insurance?
« Reply #58 on: January 30, 2014, 04:54:40 PM »
Rabbi Jachter's Halacha Files
(and other Halachic compositions)
 

Summer Issue          21 Sivan 5766-16 Elul 5766             June 17, 2006 –September 2,2006             Vol.15 No.35






Torah Perspectives on Insurance
by Rabbi Chaim Jachter

Introduction
Insurance is a fundamental aspect of almost every individual and family financial plan. If one is young and has a large family, adequate insurance to protect the family is essential. In addition to discussing Torah perspectives on insurance for individuals and families in this issue, we will also present and expand upon a proposal made by Rav J. David Bleich concerning the purchase of insurance as a community. We will begin by discussing the permissibility of acquiring insurance and the possibility that in certain cases insurance may be required.

The Permissibility of Purchasing Insurance – Rav Moshe Feinstein and Rav Ovadiah Yosef
Both Rav Moshe Feinstein (Teshuvot Igrot Moshe Orach Chaim 2:111) and Rav Ovadiah Yosef (Teshuvot Yechaveh Daat 3:85) were asked whether or not Halacha permits acquiring insurance, because perhaps insurance indicates a lack of trust in Hashem. Both of these authorities wholeheartedly permit one to acquire insurance. They state that insurance is a legitimate business venture and does not demonstrate a lack of faith in Hashem. Rav Moshe points out that Hashem endowed humanity in recent generations with the idea of establishing insurance. Moreover, Hashem provides the individual with the intelligent idea to purchase insurance. As long as we grasp that Hashem deserves the credit for giving us these ideas, Hashem credits us with having complete faith in Him. This idea is expressed in Targum Onkelos to Devarim 8:18, where the Torah states, “And you shall remember Hashem, your God, because He is the One Who gave you strength to make wealth.” Onkelos translates this Pasuk as commanding us to recall that Hashem presented us with the idea to acquire property. Rav Moshe notes that we should have faith that Hashem will provide us with the means to pay the insurance premiums each payment period. Rav Moshe extends this Heteir to life, fire, theft, and car insurance.
Rav Ovadiah Yosef (among other authorities) cites Tosafot (Kiddushin 41a s.v. Assur LeAdam) as a precedent to permit the purchase of insurance. The Gemara (ad. loc.) states that it is forbidden for a father to marry off his daughter when she is a minor (Kiddushei Ketanah) unless the girl is old enough to express her wish to marry a specific individual. Tosafot, in turn, record that the practice among Jews in his time and area (twelfth-thirteen century France-Germany) was to marry off their very young daughters, against the Gemara’s recommendation. Tosafot explain that since they live in time of distress (apparently referring to the Crusades), they must seize an opportunity to marry off a daughter because if one had sufficient funds to provide a dowry, he did not know if he would have those funds when the girl would come of age. Tosafot do not condemn such behavior as lacking Bitachon (trust in Hashem); rather, they sanction this practice as a prudent financial precaution. Rav Ovadiah argues that purchasing an insurance policy may be evaluated in a similar manner.
Similarly, Rav Ovadiah cites Tosafot (Bava Metiza 70b s.v. Tashich) who adopt a lenient approach regarding another matter due to the socioeconomic pressures of the time. The Gemara (ad. loc.) records that some say there is a rabbinic prohibition to charge interest even when lending to Nochrim under certain circumstances. Tosafot, however, cite Rabbeinu Tam who defends the practice of that time to lend money to Nochrim with interest in all situations. He argues that since it is impossible for us to survive in business unless we charge interest to Nochrim, we may rely on the lenient opinions that permit such lending. Once again, Tosafot do not advocate simply relying on miraculous intervention to earn an adequate living, or exhort us to bolster our faith in God’s ability to deliver us from economic distress. Rather, they condone relying on lenient opinions when necessary.
Interestingly, Islamic Law, LeHavdil, forbids the institution of life insurance. Life insurance is illegal in Libya and Iran. Furthermore, an editorial appeared in the New York Times February 23, 1853 condemning the use of life insurance as leading to laziness. Many Christian theologians in the sixteenth and seventeenth centuries condemned it for similar reasons. Rav J. David Bleich (Tradition 31:3, page 61) notes that these non-Jewish objections to life insurance are not reflected in the rabbinic literature from the time of the Rishonim until today. Indeed, both Rav Moshe and Rav Ovadiah note that common practice even among the most pious of individuals is to purchase insurance, a further indication of the permissibility of this venture. He cautions, however, that the policy should be in harmony with Halacha and not violate the prohibition to charge interest or require an autopsy in case of death.

Hashkafic Lessons Gleaned from Rav Moshe’s Teshuvah
We should take note of Rav Moshe Feinstein’s assertion that Hashem has endowed mankind with the idea of establishing insurance. This expresses a major idea in Torah thought – that divine revelation continues until this very day (albeit in a subtle manner). Indeed, on Shabbat and Yom Tov we specifically request from Hashem such revelation, beseeching Him to “enlighten our eyes in [His] Torah.” This may be understood as asking HaKadosh Baruch Hu to provide us with novel insights (Chiddushim) in Torah.
Moreover, Rav Moshe’s statement teaches that such revelation is not limited to Torah matters, but also applies to non-spiritual matters. We seem to daven for such revelation in the fourth Berachah of the weekday Shemoneh Esrei in which we ask Hashem for intelligence. Based on the Targum Onkelos that Rav Moshe cites, we may also say that when we pray for Parnassah (sustenance), we are not only asking Hashem to create opportunities for us to earn money, but also requesting an endowment of intelligence to make the appropriate business choices.
In addition, I once cited this Teshuvah in a response to a Talmid who asked what spiritual value lies in the study of history. At first, I responded that in studying Jewish History one is presented with an opportunity to perceive the hand of Hashem preserving Am Yisrael in its struggles throughout the millennia (see Aruch HaShulchan (O.C. 1:10). Subsequently I added that Rav Moshe’s assertion about continuing divine revelation teaches that the study of history actually is the study of the ongoing divine revelation in all areas of life. This is especially true according to the Ramban (Devarim 17:15) and the Zohar (in “Berich Shemei,” which we recite when we open the Aron HaKoshesh to remove a Sefer Torah), who teach that Hashem controls both the appointment and actions of leaders.
We should note, in fairness, that although the ideas expressed in this Teshuvah may be marshaled to encourage secular education, Rav Moshe in this Teshuvah writes that one should prepare to earn a living only when the need presents itself.

Requirements to Purchase Insurance
Rabbinic authorities not only permit acquiring insurance, but even require it in some cases. For example, Teshuvot Beit Shlomo (Choshen Mishpat 48) rules that since it is customary to acquire insurance, one partner who pays the premium for fire insurance may recover half the cost from the second partner. He cites as precedent the Mishnah (Bava Batra 7b) which states that all residents of a town are required to contribute to the construction of a protective wall around the town. He reasons that insurance costs fall under the same category as expenditures for protecting a city. (See Rav Bleich’s essay for further sources regarding authorities who seem to either support or disagree with the Beit Shlomo’s ruling.) Rav Bleich notes that “Beit Shlomo’s analogy of insurance to the erection of fortifications for the defense of a city certainly indicates that seeking protection against financial loss is ideologically no different from seeking protection against marauders.”

Communal Insurance
Rav Bleich (in the aforementioned article, pp. 62-66) writes that the Jewish community should purchase medical and life insurance as a group. He cites as precedent the aforementioned Mishnah in Bava Batra that requires all residents of a town to contribute to the erection of a protective wall. Rav Bleich notes that the Shulchan Aruch (Choshen Mishpat 163:1) rules that even a minority of the residents may insist that a levy be imposed upon all townspeople in order to raise funds for such purposes. The Rama comments that this rule applies to any communal need. In addition, he rules that townspeople may compel one another to contribute to a fund to provide for the needs of strangers in their midst and to provide charity for the poor.
Rav Bleich states the well-known fact that people who lack adequate medical insurance often are denied access to first-class medical care. He cites studies that demonstrate that people without proper insurance have a much higher mortality rate than those who have medical insurance. He therefore concludes, “The community clearly has an obligation to provide for the medical needs of the indigent. This establishment of a fund to defray medical expenses represents both a needed social amenity as well as a charitable obligation, and the community is fully empowered to levy a tax for either purpose.”
Rav Bleich continues:
“A quite similar argument might be made for a communal policy requiring mandatory life insurance coverage. Sadly, there have been cases in which a young breadwinner has died at an early age leaving a widow and minor children destitute. The support of the widow and orphans then becomes a communal burden. The community certainly has a charitable obligation with regard to their support. It also has the authority to impose a tax in order to establish a charitable fund in anticipation of such needs. It would appear that the community would also have the right to use those funds to defray the cost of a group life insurance policy for each of its members, if for no other reason than on the grounds that such an arrangement is cheaper, more efficient, and more dignified than simple charity.”
It also seems that communities in which most members are homeowners should establish communal mortgage insurance policies. This can avoid foreclosures in the wake of tragic deaths of young breadwinners.
Another consideration in favor of establishing such policies is the extraordinary high cost of Orthodox living outside of Israel. Yeshiva tuition and other costs are spiraling out of control, and the need to find innovative solutions to the growing financial pressures is great. Jewish schools should purchase insurance, security, and many other items as an organized group in order to benefit from volume discounts. Jewish organizations must explore ways to purchase communal insurance policies as well as other items in a vitally necessary effort to reduce the high costs of Jewish living.

Conclusion
Rav Bleich writes that even if the community fails to organize as a group to establish such insurance policies, smaller communal groups should establish such policies. Synagogues and Jewish organizations must do their best to implement these essential plans.

 

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Re: Do you have life insurance?
« Reply #59 on: January 30, 2014, 04:55:12 PM »
Only a matter of time before religion was brought in.
And have The Rabbi sign that after death if I don't come back even that I didn't have Life Insurance, he will go collecting for my Family!