Rav Yisroel Yaakov Fisher (Even Yisroel 9:161) was asked if it is proper to insist that every member of the community purchase life insurance so that the burden of supporting the Almana and Yesomim does not fall on the tzibbur?
First of all says Rav Fisher, I don’t understand why money is collected to marry off Yesomim, while they are still children. If you tell me it is because they invest the money and then there is more later on, I can accept that. Nevertheless, I don’t think you can obligate people to buy life insurance. Without the protection of life insurance, Hashem would be more inclined to keep the family’s natural bread winner alive in the zechus of the wife and children. Once there is life insurance this zechus is irrelevant.
Furthermore, says Rav Fisher, the collection of funds for Yesomim and Almanos is a great zechus for Klal Yisroel. Life insurance will rob us of the zechusim of tzedoka and chessed that are so dearly need in our situation, Hashem Yirachem.