Let’s say you are the breadwinner of the family and you have a monthly income of Php25,000 (Php300,000 yearly). Because you love your family, you bought a life insurance with 3 million coverage.
In the event that something happens to you, your family will receive the Php 3 million. What will they do with the 3 million? Well it is up to them because you're no longer around. They could spend it all in a few years, months or even days. However, if you teach them to save and invest that 3 million pesos, it could go a long way.
If they invest the 3 million at an interest of 10% per year, your family will be receiving 300,000 as interest yearly without touching the principal.