Insurance may feel like just another monthly bill, but experts say it is one of the most important building blocks of a strong financial plan.
Money expert Barry Bigelow joined GMN this morning to break down why insurance should be viewed as protection, not pressure.
“Insurance is the foundation of a financial plan,” Bigelow said. “It’s what makes sure everything continues to move forward when bad things happen.”
For those just getting started, Bigelow recommends prioritizing what he calls the three pillars of insurance. At the top of the list is health and disability coverage.
“Most people don’t realize the number one reason people lose their home is a disability,” he said. “Expenses go up, income goes down, and disability insurance helps keep the lights on if something happens.”
Next is life insurance, especially for anyone with dependents or business partners.
“If anybody is relying on you for income, life insurance makes sure things continue if you’re not there,” Bigelow said. “It’s protection for them, not for you.”
Finally, Bigelow urges people to regularly review home, renters, and auto insurance to keep up with inflation and changing values. He says one of the most common mistakes he sees is having too many small policies while missing major gaps in coverage.
“People can be policy rich but coverage poor,” he said. “I always recommend having insurance that follows you and your family, not your boss.”