One of the nice things about home, car, and renters insurance is that you know you need it and every now and again you see it being used. You get it once and maybe you check on your policy when it expires. But for the most part, you don’t give it that much thought…, especially when you’ve got a great agent like those at Arizona Capital Insurance (formerly OMNI Insurance).

Life insurance however is a little different. Circumstances in your life will change the way you see your policy and may seriously alter your needs. Things like:

• Having a baby
• Becoming empty-nesters
• Incurring new debts
• Starting a business
• Retirement

Each of these events is bound to affect your needs. So how do you know how much life insurance you need and when you should change your policy? Well, we’ve got some suggestions about how to calculate that amount.

Cover your debts. If something were to happen to you, your loved ones would be the ones trying to pay off your loans. When getting a new life insurance policy, you’ll want to plan ahead so you have enough money to cover any and all debts – including your house. Houses are usually the biggest expense each month. By paying off the house, you’re giving your family a better chance of more easily taking care of their other payments.

Include enough for funeral expenses. Even if you have savings that could cover funeral costs, your family will appreciate a little something extra so they don’t feel confined to cutting expenses.

Plan for each child’s future. If you have younger children, you’ll want to put money aside for their education. College can be expensive and if something were to happen to you, a single parent would really struggle to provide college educations for their kids.

Allow for up to a year of time off for your spouse. Whether you have children still at home or not, recovering from loss can take some time. Whether you’re a husband or a wife, consider including enough insurance to take care of the family expenses for a year. That will allow your spouse and children some time to pull themselves back together.

No one really wants to think about the need for life insurance, but planning ahead can mean the difference between your family being well-cared for and struggling with unexpected additional expenses.

At Arizona Capital Insurance, we’re here to make sure you get the best policy for your family no matter what the situation may be.