Are You Providing a Financial Safety Net for Your Consumers?

The Five Pillars of Financial Wellness—and the One That’s Often Overlooked

Most financial institutions focus on helping consumers save, borrow, pay, and invest. These pillars form the foundation of financial wellness, and for many consumers, they work well as a financial safety net when life is predictable.

But when life isn’t predictable, another pillar becomes essential: protect.

Without financial protection, even the most carefully built financial plan can unravel. A single disruption, like an illness, an accident, time away from work, can force consumers to drain savings, rely on credit, or delay long-term goals. In those moments, protection isn’t a luxury. It’s what allows consumers to continue saving, borrowing responsibly, paying their obligations, and investing in their future.

Why Protection Is the Enabler of Every Other Financial Decision

Save

Emergency savings are a goal for many consumers, but not always a reality. When unexpected expenses hit, savings are often the first line of defense. Without a safety net, those reserves disappear quickly, leaving households vulnerable to the next disruption.

Borrow

When protection is missing, consumers often turn to credit cards, personal loans, or lines of credit to cover unexpected costs. This can increase debt and strain credit profiles, making borrowing more expensive over time.

Pay

Regular obligations don’t pause when life happens. Rent, mortgages, utilities, and childcare costs continue, even during recovery from illness or injury. A financial safety net helps consumers keep up with everyday expenses without falling behind.

Invest

Long-term investing is often the first sacrifice when finances tighten. Contributions to retirement accounts or education savings plans are paused, sometimes indefinitely, undermining future financial security. Even worse, in desperation, sometimes families will be forced to withdraw money from long-term investments and will pay large penalties as a result.

Protect

Protection is what keeps all of the above intact. When consumers have coverage designed to help absorb financial shocks, they’re better positioned to stay on track—even during periods of uncertainty.

A Big Risk Consumers Are Facing: Unexpected Medical Costs

One of the clearest examples of why financial protection matters is healthcare. Despite insurance coverage, medical expenses remain one of the most destabilizing financial events faced by consumers in today’s society.

In fact, unexpected medical costs remain the leading cause of personal bankruptcy in the U.S. Even with primary medical insurance, out-of-pocket expenses, deductibles, recovery time, and lost income can create a financial domino effect.

As insurance landscapes continue to shift—with higher deductibles, narrower networks, and more cost-sharing—consumers are absorbing more financial responsibility. That reality makes supplemental protection not redundant, but increasingly relevant.

What a Financial Safety Net Looks Like Today

A modern financial safety net isn’t about replacing traditional insurance. It’s about supporting consumers where gaps exist, helping them recover faster and maintain financial stability. A strong financial safety net gives them the fifth pillar to help avoid these huge life disruptions.

Why Financial Institutions Play a Critical Role

Banks and credit unions already help consumers manage money across every stage of life. Extending that role into protection isn’t a stretch; it’s a natural evolution.

Consumers don’t view protection in isolation. They see it as part of their broader financial picture. When institutions help them prepare for disruption, they reinforce confidence across all financial behaviors.

This is especially true as consumers navigate changes in employment, healthcare access, and family responsibilities. Institutions that proactively address protection gaps help consumers stay resilient—not reactive.

A Simple Question to Ask

If one of your consumers faced a medical disruption tomorrow, would they still be able to save, borrow, pay, and invest without sacrificing their future?

If the answer is “probably not,” the financial safety net has a gap, and that gap represents an opportunity to support financial wellness in a meaningful way.

Strengthening the “Protect” Pillar

Align Financial Protection with Real-Life Disruption

Focus on coverage that addresses everyday financial consequences, not just worst-case scenarios.

Position Financial Protection as Stability, Not an Add-On

Consumers respond when protection is framed as a way to preserve what they’re already working toward.

Support Education and Transparency

Helping consumers understand how protection fits into their broader financial life builds trust and engagement.

Meet Consumers Where They Are

Digital access, omnichannel communication, and thoughtful timing matter—especially for consumers under financial stress.

A Path Forward

Save. Borrow. Pay. Invest. Protect.

Financial wellness depends on all five. As consumers face rising costs and evolving insurance coverage, protection becomes the foundation that allows everything else to function.

At Franklin Madison, we partner with financial institutions to strengthen the protect pillar—helping consumers build a financial safety net that supports resilience, recovery, and long-term confidence, even when life takes an unexpected turn.