Insurance isn’t sexy (for most people). It’s not wealth-building. It’s wealth-protecting. And that makes it one of the most important (and most overlooked) pieces of any good financial plan.

At its core, insurance is just a way to protect yourself from financial catastrophe. You pay a small, predictable amount now so you don’t get wiped out later. That’s the trade. Done right, insurance is incredibly powerful. It keeps one unexpected moment from derailing your long-term goals.

Let’s break down the five key types of insurance that matter most.

Health insurance…

…is non-negotiable. Medical expenses are the number one cause of bankruptcy in the U.S.. One accident, one diagnosis — and you’re out tens or hundreds of thousands. And just because you’re young, doesn’t mean you’re invincible!

Health insurance doesn’t just pay the bills; it keeps your savings intact and your financial life on track.

Life insurance…

…protects the people who rely on your income. If someone else depends on you financially and you die, they’re stuck. That’s a lot of reality for 9am. Life insurance fills that gap.

And yet, nearly half of Americans don’t have it — even though most families would face serious financial stress within six months of losing a breadwinner.

Auto insurance…

…is legally required (in most places) and financially essential. It protects you from massive costs if you crash your car or hurt someone else.

The average liability claim for injury in a crash? $26,500.

Unfortunately, car insurance has been growing increasingly expensive:

Homeowners insurance…

…protects your biggest asset — your jawline home — from disasters and lawsuits.

The average fire claim is $77,000. Without coverage, one accident could destroy decades of equity.

This has become a sensitive topic in areas like California which have a growing threat of wildfires, like those that happened earlier this year which could cost more than $40 billion in damages.

Florida is another state with home insurance costs rising, thanks to growing threats from serious weather events:

Disability insurance…

…is the one most people skip — and maybe the one you need most. Your income is your most valuable asset.

If you’re too sick or injured to work, you still need to pay rent, bills, and survive. Disability insurance protects your paycheck.

Asleep yet?

Insurance is boring. I get it. But it’s the foundation everything else rests on. Protect the downside. Sleep better at night. And keep building your future.