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Read time: 4.5 minutes

You know all those inspiring songs and speeches that encourage you to live like it’s your last day on Earth? Turns out that’s a good mindset for calculating how much life insurance you may need.

And, to make it easier, we created a life insurance needs estimator to walk you through the many factors to consider.

The fields in our Life Insurance Needs Estimator are listed by importance. So, as you fill it out, pay special attention to the first three fields: paying off your mortgage, replacing your income and final expenses. The other fields are good to consider but not a necessity.

1. Pay off your mortgage
2. Replace your income
3. Pay final expenses
4. Pay for college
5. Pay off debts
6. Donate to charity

1. Pay off your Mortgage

Keeping with the “if I die tomorrow” mentality, enter in the amount you owe on your mortgage right now. This eliminates a huge financial burden from your family.

What if I don’t own a house yet? Or, what if I’m planning to move?

If you’re planning on moving or buying your first home, you should still consider including a mortgage amount on the estimator. Since you don’t have an exact number for your mortgage, you will need to estimate it. Here are some ways to estimate an amount for your future mortgage:

• Research the housing market and the cost of homes in the area you hope to live.
• Consider your monthly household income and the amount you’re able to pay toward your mortgage.
• Ask your bank how much they might finance you for, given your current income.

While you may not end up using that full mortgage amount to buy your future home, it’s better to be a little overinsured than underinsured. Those extra funds can still benefit your family in the other areas the estimator includes.

Should I include the mortgage of my second home?

Generally, no. The priority for your policy should be your primary residency.

Second homes aren’t usually considered a necessity. But, it’s your policy and if your second home is important, you can certainly include it.

2. Replacing your income

For this field, enter your current annual income. This is not the same as household income. This is just your individual, annual income.

To figure out the number of years to replace your income, consider the number of years before you retire. If you’re 30 today and you expect to retire at 60 years old, you will want to replace your income for the remaining 30 years.

If you’re still in school or planning on a big career change, you can enter an estimate of your annual income. Look at projections and estimates of earnings for the job you hope to have. Consider where you plan to work, as that may affect your income.

Read more: The Gift of Life Insurance for Children

3. Final costs

This field includes the expenses that go into funeral and burial. Specifically, things like the cost of the funeral home, flowers, programs, an officiant speaker, the burial site, cemetery plot and anything else you may want at your funeral. You will see that our estimator states the typical funeral costs around $10,000. That’s a good number to put in.

Reasons to consider a higher amount include inflation and additional expenses for funeral and burial arrangements. If cremation is a potential option, consider an amount lower than the suggested $10,000.

4. Pay for your children’s college

This is the hardest field to calculate because there are so many unknowns. It’s common to leave this field blank unless you know you want your child to go to a certain school. If you want to include an amount, but don’t have a school in mind, you can always base it on your experience and factor in inflation.

Read more: Is Life Insurance Taxable? Here’s What You Need to Know

 

5. Pay off your debts

For this field, think of any outstanding debts beyond your mortgage that may be a burden on your family. For example:

• Student loans
• Auto loans
• Mortgage on your second home (if you have one)
• Credit card debt

6. Donate to charity

If you want to leave a charitable contribution to a cause you support, this is where you can enter the amount you want to leave as your legacy. If you enter an amount here, keep in mind you will want to record which organization you want the funds directed to in your will.

Do I need my own life insurance policy if I have one from my employer?

The short answer: yes.

If you have a policy with your employer, you may not consider an individual life insurance policy. However, typically, your employer’s life insurance policy only covers you for as long as you’re an employee there. So, if you live into retirement, you won’t have that benefit anymore.

Read more: Whole Life Insurance vs. Term: What You Need to Know

Once you fill out the estimator, you will see your total estimated need amount at the bottom. From here, it’s a good idea to print it out, or save it, and talk it over with your local, independent insurance agent. They will show you different life insurance products and help you find a suitable fit for your family and budget

Copyright Auto-Owners Insurance Company © 2021. All Rights Reserved.

Read time: 4 minutes

With the growth in construction, it’s no secret that the pandemic has inspired more than a few home improvement projects.

But, what if we told you that those projects did more than improve your attitude about being home?

They potentially changed your homeowners insurance needs.

When you complete home improvement projects, you need to tell more than your family, friends and social media followers.

Your insurance agent is actually one of the first people you should tell.

Specifically, you need to tell your agent about home improvement projects that potentially add value to your house.

Here are just some of the home improvement projects you should consider discussing with your agent:

• Remodeling or renovating part of your house
• A project that adds square footage to your house
• Adding a deck
• Digging a pool
• Finishing your basement
• Building a new structure (pole barn, shed, garage, etc.)
• Replacing your roof, siding, windows or similar exterior feature
• Any project that adds significant value to your house

How do home improvement projects affect my homeowners insurance?

The main way home improvement projects may affect your home insurance is they can change the cost to rebuild your house. And that is a big deal. After all, it’s the main reason you have an insurance policy for your house: To repair or possibly rebuild your house in the event of a disaster (based on the coverages purchased).

Insurance companies often provide coverage based in part on the cost to fully rebuild your house in the event of a loss. Some policies provide coverage on an actual cash value (ACV) basis. ACV is based on the age and condition of the property at the time a loss happens.

The cost to rebuild your house is called replacement cost. When you have a policy that pays on a replacement cost basis, we want to insure the full cost to rebuild your house. Not necessarily what it may sell for, but what it would cost to build it new.

Read more: How to Select the Best Homeowners Insurance

Let’s look at an example.

Dominic and Sam buy a house. Two years later, they decide to add a garage. Later that summer, a strong storm comes through and a large tree falls on their house.

Unfortunately, Dominic and Sam didn’t tell their agent about the garage they built. So, their insurance will likely only cover up to the limit of insurance they purchased, even if the cost to rebuild with the garage is higher than that limit. This may leave them footing part of that repair bill.

If Dominic and Sam told their agent about their new garage, their insurance would have been adjusted to have adequate limits to rebuild their home the way it was when the loss occurred.

There are also endorsements or amendments to policies that cover increased costs in construction. This may help in a situation similar to our story above. However, even these endorsements may have provisions stating that you must notify your agent if any combination of home improvements will exceed a certain percentage of the replacement cost of your home.

Moral of the story: tell your agent about your home improvement projects.

The policy limit you originally selected for your homeowners insurance may not be high enough after your home improvement project. Your insurance company will only pay the limit shown on your policy. Talking to your agent to reassess your policy may save you and your budget a lot of grief later.

Large updates can change how you’re compensated for a covered loss

There are some situations that a home improvement project may actually change how we can compensate you in the event of a covered loss. While most homeowners policies have replacement cost, there may be parts of the home that are only insured for actual cash value, such as your roof. In the case of roofs, this is dependent on the age of the roof.

Read more: Homeowners Insurance and Roof Storm Damage: 5 Things You Absolutely Need to Know

For example, if your roof is 20 years old, it may be insured at actual cash value. However, if you recently replaced it, you may qualify for replacement cost on your roof. Telling your agent about the update helps ensure your policy is written with the best coverage possible.

It can warrant a change to your home insurance policy’s limits

When you bought home insurance, you selected limits of coverage. Limits are just what they sound like. Your policy will cover up to a certain dollar amount of damage. Different coverages within your policy have their own limits.

For example, your personal liability coverage within your home insurance has varying limits you select at the time of purchase. Liability coverage protects you if somebody makes a claim against you or another insured because of an injury, property damage or other covered loss.

So, if you added a pool, your agent may advise increasing your liability limits because of the risk of potential injuries and having more people over to your house to swim.

If your home improvement project was building a pole barn or a garage, your other structures coverage limit may need to increase.

While these may seem like small adjustments, they can be the difference between being adequately insured or underinsured.

Read more: 7 Things Nobody Tells You About Homeowners Insurance

Are there other situations I may need to talk to my agent about?

Besides major home improvements, there are other reasons to talk to your agent. Many homebuyers typically think once they buy their home, and get insurance, they’re done.

But there are actually lots of other changes that may need to be discussed with your independent agent to make sure your homeowners insurance policy is up to date.

Examples of these changes may include:

• Changes to who is living in the home
• Changes to how much time you spend in the home throughout the year
• Upgrading the contents of your home
• Installing an automatic sprinkler system
• Installing a home security system
• Adopting a dog
• Starting a home-based business

Read more: What is an Independent Insurance Agent?

Another aspect of your home that may change over time is the contents inside. It’s a good idea to keep an up-to-date home inventory to document the items in your home. Several free apps can help you capture the information quickly.

As your home and family change, tell your agent. This will help make sure you still have the best coverages for your home

Learn more: Home Insurance & Ways to Save

Copyright Auto-Owners Insurance Company © 2021. All Rights Reserved.

You need insurance. We all do. In some cases it’s required by law, in others it’s required by the unwritten code of being a responsible adult that owns things. So, what’s the best way to buy it?

Online or with an agent?

What kind of agent – independent or captive?

Oh, and what does this all mean?

We think life is complicated enough; your insurance doesn’t have to be.

What is an independent insurance agent?

This may surprise some people, but an independent agent is a small-business owner. Agents are not an employee of the insurance companies whose products they offer.  The insurance agency is often run by a few agents and administrative staff members. Oftentimes it’s family owned. Another misconception is that they sell their own insurance products. They do not. Instead, they work on behalf of their customers to obtain policies from insurance companies.

Now, it’s important to point out that every insurance agency you see is not an independent agency. There are also captive/exclusive agencies that operate differently. If you want to find independent agents in your area we recommend using our Agency Locator tool.

What’s the difference between independent insurance agents and other insurance agents?

The main difference is that independent insurance agents offer more choices than captive/exclusive insurance agents. Captive/exclusive agents offer only one insurance company’s products. This means they can only place your policy with that one company.  Independent agents, on the other hand, have options. They can place your policy with one of the several insurance companies they work with to make sure your unique needs are met.

Summary: Independent insurance agents help you find a policy with one of the several insurance companies they work with at their agency. Other, captive or exclusive, insurance agents can help you find a policy with the one insurance company they work with at their agency.

So, what’s the best way to buy insurance? If you ask us, an independent insurance agent!

At Auto-Owners, we are committed to offering our insurance products solely through independent agents because of the many advantages they offer you.

What advantages? Glad you asked.

1. Your local independent agency is your one-stop shop for all types of insurance. Since independent agents offer a variety of insurance products from several insurance companies, you are more likely to be able to handle all of your insurance needs in one place rather than trying to coordinate with businesses all over town. Most independent agencies offer life, home, car and business insurance. This means you may only need one point of contact for all your policies.

2. Local support from somebody you know. Many customers share stories about their independent agent being the first one on the scene after losing their home to a storm or fire. Agents take their job seriously, especially when their customers experience a loss. They know you personally and are ready to help when you need it most. For many agents, this is why they became insurance agents – to help people during hard times.

3. You can have the same point of contact even if you want to switch insurance providers. Let’s say you are interested in changing your insurance. When you have an independent agent, you don’t have to go back to the drawing board. Instead, you can call the same agency and they can help coordinate the switch. This means you can often stay with your same agent even if you switch insurance providers. This way you can continue to work with the person you’ve built a relationship with and who knows your needs.

4. Your independent agent knows your community, because it’s their community too. Independent agents live and work in your community, maybe even in your neighborhood. This means they personally understand the insurance needs specific to your area. This is extremely valuable since insurance requirements vary from state to state. Your local, independent agent can offer you more personalized guidance than a 1-800 number or website can.

5. Expert advice means you’ll have confidence and peace of mind. Do you really want a flashy website form and an automated formula to be what stands between you and financial distress in the event of a claim? With an independent agent, you will receive expert guidance from their experience. And, if you need to file a claim you will know whom to call. Not to mention, if you have questions about your policy you can call your agent. This beats waiting on hold for what feels like forever just to get a simple question answered.

6. You get insurance that fits your needs rather than a one-size-fits-all policy. When you call or visit an independent insurance agent, they will work with you to review several options for your insurance. This allows them to focus on finding a policy that fits your needs rather than fitting your needs into what one insurance company offers.

7. Working with a local, independent agent means you are supporting a local business. Most independent agencies are locally owned. Many agencies are owned and operated by a family from your community. So, when you call the agency to find your policy or inquire about a potential claim you are likely calling a familiar area code rather than a 1-800 number.

What about all those cheap and easy options I see online?

We’re not going to pretend there isn’t an option to buy insurance online, directly from other insurance companies. Because, well, there is. They like to tote that insurance can be cheap and easy. They say you can get a quote fast and get the cheapest coverage.

But, let’s take a second and ask ourselves if “cheap and easy” is how we want to describe one of the most important financial decisions we make in our adult lives? Does cheap and easy give you confidence?

Alternatively, would you find confidence in the fact that a licensed professional that knows your name has your back? The expert that you know personally did a thorough review with you when you purchased your policy. They looked it over, they know the companies and put your assets with the company they know from experience provides the coverage you need.

How do I find an independent insurance agent near me?

Ready to find an independent agent? We make it easy with our Agency Locator tool. Enter your zip code and we will show you independent agents near you right on the map. From there you can click on the agent’s information and contact whichever one you choose.

Copyright Auto-Owners Insurance Company © 2020. All Rights Reserved.

A campfire can be one of the best parts of camping, or provide necessary warmth to hunters and other outdoor enthusiasts. Just don’t forget your responsibility to maintain and extinguish it to prevent wildfires.

• 1

  

  Never cut whole trees or branches, dead or alive. Live materials won’t burn and dead standing trees — called “snags” — are often homes for birds and other wildlife.

• 2

  

  Once you have a strong fire going, add larger pieces of dry wood to keep it burning steadily.

• 3

  

  Don’t burn dangerous things like aerosol cans, pressurized containers, glass or aluminum cans. They could explode, shatter and/or create harmful fumes or dust.

• 4

  

  Keep your fire to a manageable size.

• 5

  

  Make sure children and pets are supervised near the fire. Never leave your campfire unattended.

• 6

  

  Extinguishing Your Campfire

  Allow the wood to burn completely to ash, if possible.

• 7

  

  Pour lots of water on the fire. Drown ALL embers, not just the red ones. Pour until hissing sound stops.

• 8

  

  If you do not have water, stir dirt or sand into the embers with a shovel to bury the fire.

• 9

  

  With your shovel, scrape any remaining sticks and logs to remove any embers. Make sure that no embers are exposed and still smoldering.

• 10

  

  Continue adding water, dirt or sand and stirring with a shovel until all material is cool.

• 11

  

  Remember:

  If it’s too hot to touch, it’s too hot to leave

  Pack it in, Pack it out.
  It is your responsibility to pack out everything that you packed in, including any trash.

  ARTICLE BY SMOKEYBEAR.COM

Planting tomatoes, carrots, or cukes for the first time? Use this guide to help you plan, prepare, and plant a successful plot.