• 66 minutes

Lesson Prep

  • Bring a box of tissues to class, some class members might get emotional
  • Everyone 18 years and older needs to have a will


  • Welcome class members back!
  • Review the Baby Steps
  • Do a budget checkup
    • What impulse purchases did you make (or avoid) since the last lesson?
  • Instruct everyone to turn to page 91 in their Member Workbook
  • Take attendance and watch the video
  • Look for your coordinator cue before the One-Minute Takeaway to get ready for the Activity


  • Insurance protects the things that will make you wealthy
  • The purpose of insurance is to simply transfer risk, this is your defensive game plan
  • There are eight types of insurances that you need

Insurances to avoid

  • Credit life insurance and credit disability insurance on debt you owe
  • Mortgage life insurance
  • Double indemnity insurance for accidental death
  • Cancer insurance
  • Prepaid burial insurance
  • Return of premium
  • Waiver of premium
  • Dental and Vision insurance

Insurances you need

  • Auto insurance
    • If you have a full emergency fund, think high deductibles
  • Home owners insurance
    • Get enough to
      • Rebuild your home
      • Replace your stuff
      • Cover injuries and damages that happen at your property
      • Reimburse living expenses after the loss of an insured home
  • Rental insurance
    • If you are renting, always get renters insurance
  • Umbrella policy
    • Only get if you have a net worth of at least half a million dollars
  • Health insurance
    • Raise your deductible to lower premiums
  • Long-term disability insurance
    • Covers loss of income if you are not able to work for a long period of time due to an illness or injury
      • Find a policy that covers 60-70% of your annual income
  • Long-term care insurance
    • Covers assisted living care, in-home care and nursing home care
      • Get if you are 60 years or older
  • Identity theft protection
    • Make sure it includes restoration services that assign a counselor to clean up the mess
  • Wills
    • Everyone 18 or older needs a will
  • Life insurance
    • Replaces income that’s lost due to death
    • Term life insurance is the only life insurance you should get


  • Have one person in your group read the Activity on page 98 out loud. Then, take a few minutes to complete the Activity together. I’ll be walking around the room if you need help.

Discussion Questions

  1. When have you let the cost of insurance dictate how much insurance you get in a certain policy? How does this lesson challenge you to think differently?

  2. How do you see your fully funded emergency fund fitting into your insurance plan? How can you make sure you have the right balance between the two?

  3. Everyone 18 or older needs a written will. Do you have a will? If not, what has been holding you back from getting one?

  4. Can you imagine building wealth to the point where you can self-insure? Why or why not? How have the Baby Steps moved you closer to making that a reality?

Wrap Up

  • Go to page 101 and read through the action steps
  • Review all your coverage/insurances
  • Keep working on your budget
    • You need to be aware of how much you have spent on certain categories
    • You need to make a monthly budget
    • You need to be having Budget Committee Meetings