Good free real life simulation games include "Second Life" and "Virtual Families." Some other games designed to simulate real life are the "Sims" series and "Suburbia."
"Second Life," which is free to play, features a massive virtual world for players to explore. Players can enjoy any number of activities in this game, including social ones. Each player can also customize the appearance of his avatar exactly the way he wants.
"Virtual Families" is unique because it is designed for real time play and immersion. The avatars perform tasks in the same time as players would in real life, and they go to sleep when the player does.