What it does: Think of this as a way to protect your family if something unexpected happens to you. If you have a life insurance policy and you pass away, the insurance company will give a sum of money (called a death benefit) to the people you've chosen (your beneficiaries), like your parents or siblings.  

Why it's important: This money can help your family pay for things like funeral costs, bills, or even future expenses like college. It's like a safety net to make sure they're okay financially if you're not there.  

Think of it like: A promise that if you're not around, your family will have some financial support.

What it does: This type of insurance helps you pay for medical care when you get sick or hurt. You pay a regular fee (called a premium), and when you need to see a doctor, go to the hospital, or get medicine, your health insurance will cover some or all of the costs.  

Why it's important: Healthcare can be very expensive! Health insurance helps make sure you can get the medical attention you need without having to worry about huge bills. It can cover things like checkups, vaccinations, and treatment for illnesses or injuries.  

Think of it like: A way to share the cost of staying healthy or getting better when you're not feeling well.

What it does: An annuity is a bit different. Think of it as a way to save money that can grow over time, and then later on, you can receive regular payments from it. You usually pay a lump sum of money or make payments over time to an insurance company. Then, at a certain point in the future (often when you retire), they start paying you back in regular installments.  

Why it's important: Annuities can help you have a steady stream of income in the future. It's like creating your own "paycheck" for later in life.  

Think of it like: A savings plan that gives you guaranteed income in the future.