Real life situation:
A scientist is reading the novel Frankenstein by Mary Shelly and becomes inspired to try to bring life to a dead body.
Language and imagination are both ways of knowing. I think language in TOK means the symbols that have meanings; we get information from those symbols. Imagination is a natural ability, nobody teaches us how to image. Within imagination, there is logic and reasoning I think these is where we get the information from and also the image people created in their heads.
The most typical products that combine these two woks are the fictions, novels or even fairytales. People write the images in their heads by using the symbols that have meanings try to tell other people about the story or their own ideas.
Another real life situation could be when someone is talking to me, I would automatically try to image if I were the person or try to recreate the situation that the person is taking about. I think language and imagination works collaborative, one helps another one.