I will have time later to give a more detailed response if you want to hear it, but I had to comment quickly on two things:
Yes, it makes sense to save even though you have debt. The reason is because paid off debt is not a liquid asset, but a savings account is. If you need cash one day, you cna’t waive your lower loan statement at the checkout line, but you can use money from a savings account.
Areivim as life insurance at best goes under the category of insurance that “you have, but you one day won’t”, as your teacher put it.