Building Financial Strength Beyond Investing (Part 3)

Last week, we began looking at insurance as a vital part of your financial plan — exploring how life insurance helps replace income, pay debts, and secure your family’s future.

This week, we’re continuing the conversation with a simple but powerful truth: insurance isn’t an investment — it’s a safety net.

Recently, someone shared a comment I’ve heard many times:
“I can’t fathom paying for term life insurance for 30 years and getting nothing back when it’s over.”

It’s a valid question — and a common one. Term life doesn’t build cash value, and if you outlive the policy, it ends. But that doesn’t mean it’s wasted money. You don’t buy term insurance expecting a payout; you buy it so your family doesn’t face financial devastation if the unthinkable happens during your most vulnerable years.

Think of it like paying for home or car insurance: you hope never to file a claim, but you still pay the premium because the cost of being unprotected is far greater. Insurance is one of those rare things you purchase praying you never need, yet you’re profoundly grateful for it when life takes an unexpected turn.

The goal isn’t to make money from insurance — it’s to make sure illness, injury, or loss doesn’t erase the progress you’ve worked so hard to build. It’s not about the return you get if nothing happens; it’s about the protection you have if something does.

💡 This Week’s Focus: Protecting Your Health, Income, and Everyday Life

Think of this week’s topic as the second layer of your financial defense system. Last week, we focused on protecting your family’s future through life insurance. This week, we’ll turn to the coverage that protects you — your health, your ability to earn an income, and the everyday stability that keeps your household running.

We’ll look at four key areas of protection: health insurance, disability insurance, long-term care coverage, and property insurance. Each one plays a vital role in maintaining financial stability when life doesn’t go as planned — helping you recover quickly without losing your financial footing.

Because building wealth is only half the goal; protecting it is what allows you to keep moving forward with confidence.

📖 Verse of the Week

True peace comes when we prepare wisely and then rest, knowing our ultimate safety comes from the Lord.

1. Health Insurance: Guarding Against the Unexpected

Health insurance protects your finances from the high cost of medical care. A single hospital visit can cost thousands of dollars — even for the insured — so having the right plan is essential.

If you’re relatively healthy, a high-deductible health plan (HDHP) paired with a Health Savings Account (HSA) can be a smart, flexible option. Contributions to an HSA are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.

Better yet, your HSA is yours to keep — it stays with you even if you change jobs — and depending on your plan, you can invest the balance for long-term growth.

Review your coverage each year to ensure your deductible, network, and out-of-pocket limits still align with your family’s needs and financial goals.

2. Disability Insurance: Protecting Your Most Valuable Asset — Your Income

Your ability to earn an income is the foundation of your financial life. If an illness or injury prevents you from working, disability insurance helps replace a portion of that income so your savings and investments stay intact.

• Short-term coverage typically lasts three to six months.

• Long-term coverage can replace 50–70% of your income until you recover or reach retirement age.

Anyone who relies on their paycheck — employees, contractors, or business owners — should have protection in place. Many employers offer basic coverage, but it often isn’t enough; a private policy can close the gap.

Be sure to review definitions carefully: some policies pay only if you can’t work any job, while stronger ones cover you if you can’t perform your current occupation.

Important Note About Employer Coverage

If you receive life or disability insurance through your employer, remember that those benefits usually end when your employment does. If you change jobs, retire, or lose coverage for any reason, your protection ends too.

For long-term security, consider purchasing an individual policy outside of work. It stays with you wherever you go and ensures your family’s financial protection doesn’t depend on your job status. Taking this step provides lasting peace of mind, knowing your coverage moves with you through every season of life.

3. Long-Term Care Insurance: Preserving Independence and Dignity

Long-term care insurance is designed for the years when age or health make daily living more difficult — when you may need help with bathing, dressing, or other personal care. These expenses aren’t covered by regular health insurance or Medicare, and the cost of full-time care can easily reach tens of thousands of dollars per year.

The purpose of long-term care insurance isn’t only to protect your independence — it’s to protect your family. Without coverage, the cost of care can quickly drain your savings, leaving your children to shoulder financial and emotional burdens during an already difficult time.

Having a plan in place ensures your loved ones aren’t forced to make hard choices about your care or sacrifice their own financial security to cover the cost. The best time to consider long-term care coverage is before you need it — typically in your 50s or early 60s, when premiums are lower and approval is easier.

4. Home and Auto Insurance: Reviewing the Coverage You Already Have

You can’t buy a home or car without insurance — but many people rarely review their policies after they’re in place. Having insurance isn’t enough; you need to make sure it actually protects what it should.

Check that your coverage includes replacement cost (not actual cash value), that your liability limits are high enough to protect your assets, and that your policy reflects current property values and vehicle costs.

And if you rent, don’t overlook renters insurance. It’s often inexpensive but provides valuable protection for your belongings against theft, fire, or water damage — and even covers liability if someone is injured in your home.

A quick annual review with your insurance agent can reveal gaps, outdated details, or opportunities to save through bundling. Small updates now can make a big difference when you need it most.

🎯 Weekly Challenge

Review your insurance lineup this week — not to cut costs, but to understand what you’re truly protected against.

• List every policy you have (health, life, disability, auto, home, etc.) and note the coverage limits.

• Identify any gaps — for example, lack of disability or long-term care coverage.

• Schedule one call or meeting this month with a licensed agent or financial planner to review whether your current coverage aligns with your life stage and goals.

Remember, the best time to prepare for a storm is before the clouds roll in.

💬 Reflection Questions

1. Do I see insurance as an unnecessary expense or as a safeguard that allows me to take risks confidently?

2. If I couldn’t work for six months, how would I cover my family’s expenses?

3. Have I reviewed my current policies recently to ensure they still reflect my needs and goals?

📢 What’s Coming Next

Next week, we’ll conclude our Building Financial Strength Beyond Investing series with Part 4: Long-Term Planning for the Future — exploring wills, estate planning, and practical ways to leave a legacy of wisdom, stability, and generosity.

Stay faithful. Stay intentional. Protect what you’ve built so you can keep building toward freedom.

🔁 New here or missed a few? Catch up on past newsletters at financebyfaith.beehiiv.com

Blessings and financial peace to you!