What's The Deal With State Insurance Licenses?

If you have a driver's license in one state, you can still drive legally in other states. The same holds true with marriage. If you are married in one state, the other states will recognize your marital status. 

This isn't true if you have an insurance license, which makes selling insurance in the United States a tricky affair. As a licensed insurance agent, I have to hold a "residence" license, which as the name implies, is from South Carolina, where I reside. However, if I want to sell a policy to someone from a different state, I have to pay that state a separate fee for a "non-resident" license. Imagine having to get a new driver's license in every state you drive through.

The basic rule that is taught to insurance agents is that you should have a license in the state where the client's feet are in at the time of the application. If I am in South Carolina but I'm taking an application on someone who is in Tennessee, I have to hold a valid non-resident license for the Volunteer State. 

As an agent who markets on the internet, I have to be cognizant of where clients are calling from. I am licensed in three states currently (South Carolina, North Carolina and Virginia), and hope to get some paperwork finished with Tennessee soon. 

For an independent agent like myself, this can create a lot of problems that can be very expensive. Each state has its own fees, which come due every two years or so. One solution that I devised is to have other agents on hand who have licenses in other states. For example, my great colleague Jeanne Doran, is licensed in the state of Maine. We also have another agent, Travis Burt, who is licensed in 12 states. This helps us tremendously when clients contact us from out of state. 

But from a insurance company perspective, dealing with all of the state insurance departments can be a logistical nightmare. Let's assume that the ABC Insurance company has a life insurance product, a whole life policy. ABC takes that policy to the insurance commissioner of Virginia, for example, and has to get it approved. The insurance department must also approve the brochures, applications and any other applicable forms. 

Now let's assume that ABC is wanting the same policy approved in Texas. No problem, except they would like to have a section of the brochure printed in red ink instead of black. 

Imagine having to do that with a couple dozen products in all 50 states. Each state would have their own version of the necessary forms and applications. And some of the states may not approve of the insurance product at all. 

All of this costs companies and agents a lot of money each year. As the world gets smaller through the world wide web, the insurance industry needs to work with insurance commissioners to make sure that the residents of a state have access to the latest and most innovative products. As Surf Financial Brokers grows its network of agents we hope to be able to provide great life, disability, long term care and short term home health care insurance polices, as well as our super line-up of cancer, accident and critical illness plans.

Please check out our website and let us know if we can help you. And please, stay healthy!

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

The Benefits of Life Insurance In a Down Market

When we think of life insurance, often the first thing that comes to mind is protection. That protection extends to both good and bad markets - and not just death benefits but living benefits as well.
Given the recent financial news, here are some things to consider.

• Tax free death benefits can protect an insured's income and assets from market volatility during their working years and beyond, and provide a legacy when markets recover. 
• Income tax-free withdrawals and loans may be used as potential sources of emergency funds, or to help meet liquidity needs.
• Life insurance cash values can be accessed during a down market to avoid selling other assets and "locking in" losses.

Different types of life policies offer other advantages. Give us a call and we'll discuss with you over the phone.

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient. 

The Doctor Who Won't Listen

Have you ever seen those so-called "financial experts" on television. They have books and infomercials all about changing your financial situation by following their plan. Heck, one isn't a financial expert at all, but a travel agent. But the best part is that no matter what your situation is, their generic advice is going to set you on a path of financial success!

The truth is that people are not in the same situation. A wealthy couple with a large estate to leave their heirs has a different set of problems than the single mother struggling to pay her bills. And just telling them both to "buy term life insurance and invest the difference" makes no sense.

Imagine for a minute if you went to the doctor and all he talked about was a new wonder drug that was awesome and could treat a serious condition.  The only problem is that you don't have that condition.  At first you are polite because the doctor is very enthused about this new drug, but soon you become irritated because you need help with something else. The doctor won't have any of it and insists that you follow his orders. 

If this happened in real life that doctor would be run out of town on a rail and deservedly so. If an insurance agent were to sell their clients the same policy, despite whether they were young or old, employed or laid off, healthy or sick, they would be guilty of  "financial malpractice".

We in the insurance industry can become guilty of the same thing as this doctor.  We find a product, for instance a disability policy, and start investing our time (as well as the client's) into that product, instead of listening to the client and finding out what they really need.  In the end, the client isn't happy and the agent doesn't make the sale.

There's a better way, but the client has to meet the agent halfway. Many people don't want to discuss their personal situations with someone they barely know. And there are those who only want to talk to strangers. They feel as if they'll get a more objective opinion. Either option is good, but let your prospective insurance agent know what's going on. Issues like business succession, special needs children and budgets can help your agent get a better feel of the situation and help you remove potential landmines in your financial gameplan.

In our agency we take the approach that we have to ask questions. Sometimes it's like pulling teeth, but in the end, we do what is right by the client. And one way is by having a full suite of products that can help. Some people may not need long term care, but they may have a need for a Short Term Home Health Care plan. Or a cancer plan. Or disability insurance. 

We have helped clients from Charlotte to Charleston to Richmond and even in the state of Maine. They know that we are not going to prescribe a generic solution for all of their pain points, but will take the time to learn what their needs are and how to address them. And all of this is done without pressure. 

One way we make it easy is by making our calendar accessible. Set your own appointment and we'll give you a call to get you started. This is another reason we have been called the "coastal Carolina insurance experts". 

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast.

What Is Final Expense Insurance?

We've all seen the commercials on TV with Alex Trebek telling senior citizens that they can cover the cost of a funeral with a life insurance policy.  But what kind of insurance is it and how much will it cost?

Usually, final expense coverage is a whole life policy, which is the most expensive type of life insurance because it builds some cash value.  But do you really care about building cash value to pay for a funeral?  Probably not.  The main concern is covering the cost of a funeral  while making sure your premium doesn't increase.

In the case of our friend, Mr. Trebek, he says that you can't be turned down.  That's a good thing if you are in poor health, but being "guaranteed issue" also means that the additional risk to the company is being passed on in the cost.  Generally speaking, "guaranteed issue" costs more.

If you are in good health, there is a better and more affordable alternative.  Guaranteed Universal Life (GUL) typically runs about a third less and the rate is also guaranteed to never go up as long as you pay your premiums.  The GUL may ask for a paramed exam to qualify buy this lowers the carrier's risk, which in turn lowers your price. 

If you're looking for a way to cover the expenses of a funeral, let us help.  Contact Surf Financial Brokers for information.