Insurance is all about risk and resource management.

Most people still battle with the idea of Insurance, some think that it is not Godly, but looking at Genesis 41 when Pharaoh had a dream about the 7 fat, healthy cows who were eaten by the thin, ugly cows. We see Joseph interpreting the dream and told Pharaoh that the 7 fat, healthy cows were seven years of plenty and prosperity and the thin, ugly cows represent seven years of famine that all prosperity will be forgotten and wiped. The fact that Pharaoh had the dream twice the same night meant that God was going to make the event happen, no matter what. We see Joseph become the first resource and risk manager in the face of the earth when he advised Pharaoh that there was need to gather the food and grain in the 7 good years, he actually advised that they collect 1/5 of all the crops during the 7 good years. This is equivalent to 20% of the crops. This saw Joseph become the prime minister of Egypt.

Most people have found themselves in undesirable financial situations that they could avoid by buying the appropriate type of insurance. For example a loss of the breadwinner in the family that can lead to children becoming street children because there is no one to provide school fees, loss of income due to disability, huge medical bills, loss of property and many other situations.

When we read the story of Joseph, we realize that the days of famine/ tough financial times really happen and we need to be prepared in order to face those days with more confidence. Insurance is about trasfer of such risks as loss of income due to  disability, loss of a loved breadwinner, the huge medical bills. This transfer of risk happens when you pay a premium to the insurance company and the insurance will compensate you at an agreed value when the loss happens.

Joseph recommends you put aside 20% of your gross income for risk management.