Jayson Lowe explains how life insurance protects an individual's income both after death—via a tax-free death benefit that replaces lost income for survivors—and while alive—through living benefits such as disability insurance that replace income if the insured becomes disabled. The talk frames life insurance as income protection for dependents and highlights timing and purpose of benefits.
How does life insurance protect your income? It's a really good question. I would say that as it relates to the death benefit element of life insurance. So not if but when you pass away and that day will come. We just don't know what your best before date is if you are life insured. So when you die, your income dies and so that tax free death benefit shows up exactly when it's needed the most to give those whom you've left behind, who miss you the resources that they need to go on living. So it in fact replaces your income. And while you're alive there are living benefits, for example disability insurance where God forbid if you became totally or permanently disabled, that particular type of insurance tool is meant to replace your income so that if that occurred, your family would still be able to make ends meet financially while you're working through that difficult time. So that's why life insurance protects your income not only while you're alive but after you're gone.
