You don't really want to think about what would happen if you die. Everybody plans to see their children grow old and have children of their own.

That's why life insurance can be a tough topic to chat about with your family - but it is also why it is important.

Here is an example of how one family was able to cope financially after a tragedy.

Natasha's life insurance

Natasha (*) was a 38-year-old office manager at a manufacturing company. She and her husband were divorced and she had a mortgage and sole responsibility for the care of her teenage son, Michael.

As a single parent, Natasha was very aware of her financial vulnerability. A friend, who had been in similar situation, recommended that Natasha chat to a financial adviser.

Natasha's adviser discussed her various options and made a plan that would financially protect her and Michael, if something should happened to her. Michael was a hard worker and a high achiever at school. Natasha wanted to make sure that he would be able to afford to go to university, if he wanted to.

On her advisor's recommendation Natasha took out a life insurance and recovery policy for $500,000 as well as an income protection policy, in case she ever became temporarily unable to work.

Just two years later, Natasha left work early one afternoon complaining of a headache - thinking she was getting the flu. But later that day she lost consciousness and was rushed to hospital. She'd had a brain haemorrhage, and died that night without ever regaining consciousness.

As part of her life policy, Natasha nominated Michael as her sole beneficiary. He received the $500,000 through a trust fund. He is now working hard for his HSC, and has ambitions to become a doctor. Or maybe a vet ... or architect ...

* This case study is based on a real life insurance claim, but names have been changed. This is an example only. Grounds for making a claim and the level of benefit varies from one policy to the next depending on their terms.