The Good, The Bad And The Ugly Of Insurance Sales

A few months back I ran into a great lady who had purchased a life insurance policy from me many years ago. We had stayed in touch for a few years but I lost touch with her. Needless to say I was a bit surprised when she responded to one of my posts on Facebook regarding some new policies Surf Financial Brokers was offering. 

After speaking to her for a while I realized that a lot of things in her life had changed since we had last spoken. She had made several career changes and was currently working for a non-profit organization. Her personal situation had changed as well, as she had a new beau who seemed to be a good guy. During our conversation she mentioned that the life insurance policy she had purchased from me years ago had lapsed and now she was in the market for a new policy.

Her concerns had also changed a bit over the years. Her parents were now deceased, but before they died she had been one of the principle caregivers in their later years. With that experience she had come to realize how expensive care in a facility was. Now she was in the market for some sort of life insurance, but she also wanted something to help offset the costs of long term care. The problem was that she had a limited budget to do all of the things she wanted to accomplish. 

One of her main concerns at the time was that Covid was sweeping through nursing homes and assisted living facilities. With this in mind, she really wanted to know that if she needed care, she could stay in her own home. Luckily we had a great way of handling this part of the issue in a way that would be affordable for her. 

Our Short Term Home Healthcare plan (STHHC) offers clients a way to offset the extremely high costs of having caregivers in the home. The policy helps with costs for up to 365 days, which do not all have to be consecutively, since many people have caregivers come to their homes only 3 or 4 times a week, usually when family is unavailable. This means that the policy can conceivably be stretched out over several years. 

Even better, the application only has 3 questions, which means getting approved is very easy.

But the best part for her was that the policy is very affordable compared to a full-blown Long Term Care (LTC) policy. Saving her money was a priority for her, but this was only one part of the issue. 

We still needed to resolve the life insurance part of the puzzle. This is where things got messy. She had gotten older (by about 15 years) since she had purchased the previous policy from me, so that made the rates go up of course. Even though the face amount of the policy she wanted was fairly low, we both agreed that a permanent policy would be a better fit than a term policy. 

I took her application and submitted it to the insurance carrier, and soon after a paramed nurse met the client at her home. Everything was going smoothly until I got a call from the insurance company. Apparently when the underwriter pulled her medical records there were some underlying health issues that had not been disclosed previously. 

The insurance carrier rated up the policy, meaning that her premium cost would go up. They gave me a new price, as well as different face amount for the premium she wanted. I knew in my gut that the client was not going to be pleased either way, but I picked up the phone and gave her a call. 

When I gave her the new numbers she said she needed a few days to think it over. The following week I called her and left a voice message, followed up with a few more over the next week or so, along with emails. I got no response. This wasn't good. 

After several weeks I got a letter in the mail from the insurance carrier. She had called in and requested that the company withdraw her application. Since she decided that she did not want to communicate this information through me I left her alone. I don't want to badger the lady and honestly I think she prefers I drop the matter. 

The moral of this story is that if she had been upfront with me on her health issues, we could have gotten her a more accurate quote from the beginning of the process. Remember that life insurance quotes are merely estimates based on the information given. A final rate is not determined until the full underwriting process is completed. It may be uncomfortable, even embarrassing, to discuss these kinds of personal matters with your agent, but full disclosure is always the best option.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. 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!

Do I Have To Be In A Nursing Home Or Assisted Living?

In the last few weeks I have had some conversations with people who were considering Long Term Care (LTC) insurance. I always appreciate folks who are looking into this coverage because I consider them to be forward thinkers. In our current environment of YOLO (you only live once), the "live for today" mantra can make it hard for those of us who help plan for future issues. Those who think that "we can go at any minute so we should enjoy today" aren't looking at the future and tend to miss the forest for the trees.

People who usually take on the YOLO mantel seem to be those who have either suffered an unexpected loss or those who have seen or heard about such a loss. "I could drop dead like my mother at any minute," is their refrain. The fact that the rest of the family has survived to their 90's is irrelevant to them.  

The paradox happens when I say, "You are correct. You could die in the next week." Then I ask, "If you knew you were going to die tomorrow how much life insurance would you buy today?" You see, the "future is unknown" argument can go both ways to a decent insurance agent.

As for the forward thinkers, they seem to get the bigger picture. These people are aware of their surroundings from a 80,000 foot view. An anecdotal story about a life cut short doesn't keep them from understanding that statistically they will live to old age, and sickness and poor health may be a factor. That's when those people plan for LTC.

But the forward thinkers are asking a question now that I haven't heard as much before. "How do I stay out of a facility?" Previously, when I spoke to LTC prospects, we discussed home health care as part of the picture. Everyone wants to stay in their home but many understand that as a chronic illness progresses, the chances of ending up in an assisted living or skilled nursing facility increases. 

Covid has changed that discussion. The images on the news of elderly patients sequestered in facilities and waving to their families through the windows are heartbreaking. Worse are the exorbitant numbers of infections and deaths at these facilities as the virus spreads through the community. The staff and care givers are getting the virus too.

This is why clients are so much more interested in staying in their homes now. Yes, many LTC policies include coverage for home health care, but the premiums on those policies can be very high. Plus the underwriting may keep some of these prospects from getting coverage at all, regardless if they stay at home or a facility. 

With all of this in mind, we have been fortunate to find a suitable Short Term Home Healthcare (STHHC) policy from one of our carriers. This policy is a great addition to any LTC planning in that it's both affordable and easy to understand. 

A client can receive benefits as they stay at home for up to 365 days, and those do not have to be consecutive days. Some people may have a caregiver in their home only 2 or 3 days a week. They can also choose from three levels for their benefits along with some additional riders. 

The policy is not available in all states and the minimum application age is 61 years old. Given that 24 hour/round the clock home healthcare can cost over $70,000 annually, taking a look at STHHC is a smart move that can save you tens of thousands of dollars in the long run, as well as keeping one out of facility. 

If you are interested in learning more, check out our website or drop us a note and we can schedule a phone appointment. In the meantime, stay healthy and forward thinking.  

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!