You may be asking, “Does having insurance indicate my lack of faith?” Or, “Isn’t non-required insurance a waste of money? I mean, if the government doesn’t require it, it must not be important.” No, to both questions.

My third guiding money principle states, “If you are not willing or capable of taking risk, it is prudent to transfer risk to another.” And, “You need to be able to provide for your family even after your death.”

I consider it proper stewardship of your resources and I believe being under-insured is poor stewardship. To self-insure some of the simplest things (and an umbrella policy is very simple), to me, is foolish. If you are responsible for the well-being of others, then be responsible with all your resources.

Paul reminds Timothy in a letter, “But if someone does not provide for his own, especially his own family, he has denied the faith and is worse than an unbeliever.”

Both a lawsuit and death have the ability to take a good deal of your accumulated wealth or future earnings. Either may put you in a difficult position to “provide for your own.”

This is why I conduct a careful review of all my clients’ financial positions at the beginning of and periodically throughout our relationships. You should periodically review all your assets, liabilities, and risks. And, maybe more importantly, review your assumptions about your future.

Be careful and be wise,