Adding expenses to an already hectic life isn't something most of us are chomping at the bit to do, especially while we're in debt. If you're a Dave Ramsey follower, you likely have a budget. And if you're working through the Baby Steps, that budget may be as lean as possible while you ferociously pay off debt.

Necessary or Optional?

When you're in the middle of that, the last thing you want is another bill. But I'd argue some insurance is necessary, and some is "optional-but-man-I'm-taking-a-risk" optional.

The necessary insurance is likely coverage you already have, just from living life:

• Auto insurance

• Health insurance (often through your employer)

• Homeowners or renters insurance

If you don't have these, start there. An independent property and casualty agent can shop multiple companies to find you competitive rates on home and auto. If you're self-employed or don't have health coverage through work, the Health Insurance Marketplace is the place to compare plans. Be aware that premiums rose for many marketplace enrollees in 2026 after the enhanced subsidies expired, so compare carefully during open enrollment.

Then there's the "optional" insurance. As a financial advisor, I'd never call it optional, but you'd be surprised how many people don't prioritize it:

• Term life insurance

• Long-term disability insurance

The purpose of making money is to build something for you, your spouse, your family, your posterity, your church and charities, and generations to come. Dying would certainly interrupt that. It's no fun to think about, but it's a certainty in life; we just don't know when. Protecting the future your family would rely on is paramount. One amount and one term don't fit everyone, so it's worth getting professional help as you review your options.

Long-term disability insurance isn't optional either. Your greatest asset is your ability to earn an income. If that goes away, you need a tourniquet. Your family needs a way to carry on if an illness or injury leaves you unable to work during your earning years.

If you're reading this and aren't sure whether you have disability coverage through work, stop here. Email HR right now and ask. If you have it, congratulations! Group plans commonly replace around 60% of your base salary, up to a monthly maximum, often until your Social Security full retirement age. While you have HR's attention, ask three more questions:

• What's the monthly benefit cap?

• Does the policy cover my own occupation, or any occupation?

• Who pays the premium? If your employer does, your benefits will generally be taxable.

If you know you don't have coverage, let's talk about finding an option that fits.

The Answer: Now

There's never a time when protecting your money and future income is the wrong move. That's what insurance does. Simply put, it transfers the risk of the uncontrollable to an insurance company in exchange for a premium.

Picture a couple working fervently through Baby Step 2. One or both of them may be working two jobs to climb out of the hole they're so diligently digging out of. Then an 18-year-old runs a red light and slams into the breadwinner's car. The result is a broken leg, a concussion, a week in the hospital, a $200,000 medical bill, and six months out of work. You may think, "Well, insurance covers that." Exactly, as long as you have it.

Their health insurance pays most of the hospital bill, but they still owe the deductible and coinsurance up to the plan's out-of-pocket maximum. The other driver's auto policy may help, but many states require as little as $25,000 per person in bodily injury coverage, and Florida doesn't require it at all. That's why uninsured/underinsured motorist coverage on your own policy matters. And none of it replaces the paycheck that stopped. With only a $1,000 starter emergency fund, this couple is suddenly in a deeper hole than when they started.

That's where disability insurance comes into play. Long-term disability typically kicks in after a waiting period, often 90 days, and then replaces a portion of your income while you recover. Health, auto, and disability insurance together create a protective barrier around your financial security. That barrier covers not just you, but your spouse, your kids, and your home.

Now is the time to buy it. Yesterday would've been better, but we can't do anything about that.

Great, So What's the Cost?

It depends. Cost depends on the car you drive, the home you live in, your income, your job, how many kids you have, where you live, and how old you are. For life insurance, it also depends on whether you're a man or a woman; men pay more because, statistically, we don't live as long. And there are many more factors.

If you're in the thick of Baby Step 2, I'd recommend a term life policy large enough to pay off your debts and mortgage, plus about 10 times your income. The younger you are, the cheaper it will be, since younger generally means healthier in most rate books.

Do we both need coverage? 

For life insurance, yes, even if one spouse stays home. Replacing childcare and everything a stay-at-home parent does is expensive. Disability insurance generally requires earned income, so it's for each working spouse. Losing a spouse, or caring for one after a disability, is a heavy strain emotionally, physically, and financially. The more income and wealth you protect with insurance, the lighter that strain will be.

How do I get coverage? 

Talk with a financial advisor about the coverage amount that's right for you. Looking at your income, spending, housing, children, and more is necessary for insurance done right.