Life and Disability Insurance are a tough topic to discuss. One of the best explanations of their importance is a story I recently heard.
A farmer had a Goose that laid Golden Eggs and went to talk to an insurance agent about insuring it. His question to the agent was a simple one: “If you had a Goose that laid Golden Eggs, would you carry more insurance on the Goose or more insurance on the Eggs? The agent thought, … well the eggs are valuable and should be appraised … the Goose is more valuable, because it laid the eggs and would possibly lay more eggs. The agent said you should probably carry the most insurance on the Goose, especially if it lives another 30 years and lays another 100 eggs!
The Houses, Cars and Jewelry are the golden eggs. You are the goose that laid those eggs. Most people wouldn’t think about not insuring their eggs, however they often forget to insure the goose which produced those eggs.