The Magic Toaster

Tell me - who do you know that wouldn't want a magic toaster. Wouldn't that be awesome!!!
Well I guess an explanation is in order.

You see, a magic toaster looks like an ordinary toaster. The magical part of this toaster is the fact that instead of popping up toast or pastries or bagels or anything else you can stuff down it - it pops up money. Again - who wouldn't want that. Some do it once a month, some twice a month and others every Friday - new pile of money. Now it's not a huge amount of money. It's enough to get the bills paid. It will cover the kids sports activities, dinner out once in a while and maybe even a movie now and then. Same time every month out pops the money. This is a toaster you would protect at all cost, correct? As a matter of fact if you could buy insurance on it you would. If it broke you would want to get it fixed as quickly as possible. That money is needed to keep the house running.

But you see there is NO magical toaster. You are the magical toaster. Every month or several times a month, you bring home a paycheck. Money that is needed to keep the home running. Your spouse and kids are relying on that money. If for some reason that money stopped coming in, the household would be in panic mood.

There are a couple things you can do to apply a little insurance in the event something happens. The first is an emergency fund. Just a buffer in case of illness or loss of a job. It would give you a place to pull from in the event of of an emergency.

Here would be a good place to define what an emergency is:

A job-loss - Real Emergency.

long-term illness - Real Emergency.

the refrigerator dies - Real Emergency.

two tires on the car blow out - Real Emergency.

"I'm running late, I'm tired - Let's order pizza" - NOT an emergency.

"There's a shoe sale at Macy's!!!" - NOT an emergency.

Those are examples of short term situations but

What happens if you die?

What happens to your income then?

What would your family do?

You need a way to protect your income in the event you are no longer there. No one wants to talk about it. Most people would insure their car, their house, heck even a magical toaster before they would insure themselves.

Let's say that you are making $60,000 a year - that's $5000 a month before taxes. With $600,000 of insurance, should something happen to you, your family would be able to live the same lifestyle they are accustom to without the financial struggles that would otherwise be there. We never know when our turn is coming up but with simple term life insurance, wouldn't you have peice of mind knowing that your family will be ok should something happen to you?