Life insurance explained in 2 minutes
Once upon a time there were three sickly pigs. Make that 2. To pay for Pig 1's funeral, Pig 2 had to use her antibiotic money—and then she died. Now Pig three was stuck with Pig 2's student loans as a result of he was the co-signer. This new burden left Pig 3 thus poor that he lost his house to the proceedings Wolf and had to raid his piglets' school savings fund. Then Pig 3 died, and his piglets were forced to move into an abandoned microwave. Life Insurance would have helped those pigs. Life insurance pays cash after you die. You buy it to shield those near you from your debts, and to replace income that they'd lose in your absence. There are 2 classes of life insurance: term life and permanent life. Both varieties give a money payout upon your death. Permanent life combines that with investment features, so the policy accumulates a money price. For that reason, term life is much cheaper than permanent life. It's also a lot of easier. The other massive differenc...