Life Insurance - protecting the family income
Many people live long lives, but some don’t. Besides the fact that we feel very sad when someone in our family dies, that death may affect the earning power of the family. To protect the family income and the future of the family, people buy life insurance.
Paying the bills
For example, let’s say that your dad is a firefighter and loses his life in a burning building. Your dad’s income is no longer there to help the family pay monthly bills. Yet the bills pretty much stay the same. Will your mom’s paycheck be able to pay those bills, now that the family has lost a salary?
Think about this. How the family is financially affected by the death of a parent depends on when a parent dies.
Can you see how parents think about life insurance? Parents hope they will not need to use life insurance anytime soon. But they buy it just in case – if a parent dies, the family will have enough money to go on living the way they always have.
As with all insurance, there are many kinds of life insurance. People can choose how much to buy, depending on their circumstances and their financial needs.