Life is full of unexpected events. Accidents and illnesses impact people’s lives every day, yet many of them don’t have enough assets for the financial hardship that can occur as a result. This is why it’s important to have a life insurance policy in place. It will provide your beneficiaries with funds they can use to address many issues that may arise once you’ve passed away. Here are some of the top reasons to purchase coverage.

Why Should You Get Life Insurance?

1. Take Care of Loved Ones

One of the primary purposes of life insurance serves is income replacement. If you have loved ones that depend on your earnings to maintain a certain standard of living, your passing can place them under significant financial burden. Buying a policy will ensure they have the money necessary to take care of basic household essentials, childcare costs, and future educational costs.

2. Pay Lingering Debt & Final Expenses 

Life insurance can also help pay for your outstanding debts, such as credit card and medical bills, a mortgage, business loans, student loans, and car financing. If you’re married or have a co-signer, there’s potential your financial obligations could be transferred to your loved ones. Additionally, funeral and burial expenses frequently run thousands of dollars. Instead of worrying about this during their time of grief, your family can rely on your policy payout to give you a proper service.

3. Cover Estate Taxes

When it comes time to wrap up your affairs, your estate may owe taxes. These are generally expensive and can take up a large portion of the inheritance you intended for your heirs. Life insurance can be used to help cover estate taxes so your beneficiaries can avoid having to sell off assets or use the money you left behind. 

If you want peace of mind knowing your family is properly protected no matter what happens, talk to Andrew Chao of Farmers Insurance® for help exploring your life insurance options. He offers a variety of quality products and will customize a policy that meets your unique goals and budget. Countless residents throughout the St. Louis, MO, area have relied on his industry expertise for valuable knowledge and assistance finding reliable coverage. Call (314) 300-7690 to discuss your insurance needs, or visit him online to request a quote.