Why Life Insurance Is Necessary For Blended Families

As the holidays approach, the idea of taking care of our family means more to us. Having our loved ones get together for a nice meal and gift giving leaves us with great memories. 

However, when we think of the "traditional family" we think of a husband and wife and their two or three children, who all live together in one home until the kids become adults and move out. Even though there are still families in this situation, there are many people who have changed that concept. With social norms changing and people living longer, the family structure has been altered dramatically. 

Now we have parents raising children who are not theirs, biologically speaking. Think of the old Brady Bunch TV show where two parents who had their own kids remarried. Of course, on the show everything was great. The fact that Marcia was not Mike Brady's biological daughter was never brought up as a topic. 

There are those people who do love their step-kids or other children who have been brought into the home, like nieces and nephews . I know of one person in particular who is raising his wife's nephew because his sister-in-law had a drug problem. 

There are those who begrudgingly raise a spouse's children from a previous relationship to "keep the peace". And when problems arise, the kids want to move back to their other biological parent or some other option. In other words, tensions can, and in some cases, do get escalated to the point where children are going back and forth between parents or other adult family members. 

With all of this in mind, it's important to keep an even keel when it comes to estate planning with a blended family as it creates a whole set of issues. A will may seem like a good way of planning, but in fact, life insurance could be a better option to make sure those who are intended to benefit will be taken care of in the eventual death of a parent. And in the flexibility of naming and changing beneficiaries, as well as listing primary and contingent beneficiaries, makes it incredibly easy to take care of the family's estate planning needs. 

As an attorney friend of mine says, "A life insurance policy trumps a will because it's a legally binding contract." The "yours, mine and ours" scenario can be very confusing for most families when it comes to estate planning, and life insurance can be the answer that is needed. It can help avoid a long and drawn out estate process and keep the peace within a family. 

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!

Does The Non-Breadwinner In The Family Need Life Insurance?

Recently I was reading an article on all of the reasons people fail to buy life, disability and other types of insurance. Apparently there are a lot of misconceptions floating about and I wanted to take the opportunity to hopefully correct these ideas. Taking them one at at time I hope to explain these misconceptions over the next few posts.

Last week I was talking with a couple who were doing okay financially. They realized that they were fortunate enough that one of them could stay home with their small kids while the other was the main breadwinner. In this situation, the wife worked and the husband stayed home and had a small consulting business, which by their estimation was "more of a hobby". I took that as meaning he didn't bring a lot of money into the household.

We discussed life insurance for the wife and ran the numbers to pay off the debt and replace her income for a few years. They both agreed that she needed to be covered. When I asked about the husband, there was a bit of confusion. "He really isn't contributing to the bills, so I don't think he needs a policy," the wife said.

The husband, who I thought would pipe up and say something, sat there nodding in agreement. I asked a couple of simple questions: If he were to die unexpectedly, how much would she need to pay for childcare? Or would she want to take time off from work to stay home with the kids?

This was obviously something neither had considered. Especially when neither of them had family nearby. The kids were young and only one was enrolled in school, so the other child would need to either be enrolled in a daycare or preschool, or they would need to have someone come into the home, like a nanny. 

When I explained what that kind of care costs, they were taken aback a little. I tried to ease their concern and let them know that a term life insurance would be much less expensive and, in the event of the husband's death, could cover the expenses for childcare plus his funeral costs, which they also failed to plan for. 

When a family member is not the breadwinner, it doesn't mean that they don't need life insurance. As a matter of fact, we even offer a disability policy on stay-at-home parents to help replace the costs of daycare. 

What are your thoughts? Leave us a comment below.

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!

How Can I Use Life Insurance To Fund College Tuition Costs? 2023

During a discussion with a friend of mine, whom I'll call Bob, we talked about paying for his child's education costs if and when he went off to college. Bob had been divorced a couple of years and his son was in first grade at the time of our conversation. 

Bob has his own business and does pretty well financially, but he isn't a millionaire by any stretch of the imagination. He told me that he hoped that his son would get some sort of scholarships down the road, but due to his above average income, the child probably wouldn't be eligible for any financial aid when the time came. I agreed with him on this point. 

One of the first things we did was run an estimate* of how much a four year college would cost 12 years out. When I say "estimate", it truly is just that, because there are so many variables like the following:

• Will the child go to a public or private college?
• Will the school be in state or out of state?
• What if the child decides to get an associates degree at a 2-year school?
• What if the child doesn't go to school at all?
  
  
  

These are important things to think about because of the nature of our current college savings plans. Most of these plans, like the 529 or Coverdell plans, give tax breaks for setting aside money for college. And as most things that are "tax related" go, there is going to be plenty of paperwork and documentation involved. That means Bob and his child would have to disclose any college savings plans and the amount of cash accrued inside those plans. 

During this discussion I asked Bob if he had any life insurance, which he did. He had a term life policy that covered the mortgage on his house and his ex-wife was the beneficiary due to the court determining this at the time of their divorce. 

This is when I brought up using life insurance as a college savings plan. The reason I like to consider this is because it takes care of two problems at once. First, Bob needed additional life insurance as his term policy was not enough cover the cost of college for his son if he were to die too soon. Secondly, the cash value inside the policy would not need to be disclosed on any financial aid applications.

He agreed to look at some numbers. We had planned on taking money out of the policy during his son's freshman year, but a phone call gave us another strategy. My friend at the insurance company suggested a strategy where Bob's son apply for college loans. Since the loans wouldn't be due until he graduated, he could pay them back then with little to no interest in full. By waiting until the child was out of college to repay the loans, the cash value would have an additional four years to build cash value. 

Because Bob was healthy and an non-smoker, he was able to get more "bang for his buck" out of the policy. After some consideration, Bob and I agreed that the best way forward was to use an indexed universal life insurance plan, as a whole life plan would cost more and not build cash value as quickly. 

Another reason we liked the plan was that if the child, for some reason, didn't need the money, Bob could use the cash value to supplement his own retirement or take advantage of the living benefits** if he were to become chronically ill. 

If you have questions regarding using life insurance while you are living, drop us a note. In the meantime, please stay healthy!

*There are many calculators out there that can help you estimate the future costs of your child's education. We recommend this one.

**Living benefits are not available on all plans but were included at no extra charge in this case.

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 Younger People Need Life Insurance? 2023

If you are a millennial or GenX'er you may wonder what kind of life insurance you should purchase. There are a few different types of coverage available. Term, universal, indexed universal and whole life. Term policies could be considered "temporary" as they only cover you during a specific amount of time, like 10, 20 or 30 years. There are even some companies out there offering 40 and 45-year terms for younger people. Term policies are much less expensive because they only offer a death benefit and there are no other features like loans or cash value. (Some term policies now offer "living benefits" which can help you if chronic or critical illnesses arise.)

Although term life insurance does not accrue cash value, it's affordable for working families during their working years. For instance, a healthy non-smoker in their mid-20's could expect to pay less than $25 each month for $500,000. (Rates are subject to underwriting and are not guaranteed)

On the other hand there are permanent policies, like universal life (UL), indexed universal life (IUL) and whole life (WL).  These policies are more expensive but they also cover for the rest of your life as long as you continue to pay the premiums.

Permanent policies also have various ways to build cash value internally. For example, the UL uses interest rates, but since rates are at historic lows (for now), it's not a great option. We have many younger clients who use IUL's in lieu of investing and are very happy. 

For those who are single with no dependents but own a home, a policy will allow you to keep that home in the family. Having parents or nieces or nephews who could use that home if you should pass can be beneficial and life insurance can pay off the balance of the mortgage. 

So how can you get a policy? You can usually get a policy through work if they offer one, however we always recommend you have additional coverage outside of work, in case you leave your job. Also, that coverage through work is rarely enough to cover all of your debt and replace lost income. If you have a family, you will definitely need much more.

A great way is to use a quoting tool (we have one on our website) which lets you enter your information and will give you several choices of coverages. If you like what you see, you can even begin the application.

A simple method to find out how much life insurance you need is to add up your expenses and liabilities, like the mortgage, car payments and other debts. That should be a minimum for your needs. You may also want to consider lost income if you are the sole breadwinner of the home, and future education costs if you have children. On our website, our life insurance quoting tool offers a calculator to help determine your needs.

You may or may not be required to have an exam. It really depends on several factors, like the carrier and the amount you are applying for. Many companies have decreased their usage of exams during the pandemic, but they still reserve the right to have your medical records transmitted to them. And if there is no exam, you could have to answer a lot of medical questions during the application process. The secret here is to be as truthful and honest as possible, especially when it comes to questions about smoking (tobacco or cannabis) and your family's medical history.

If you have questions about what type of insurance you need or how to apply, let us know. In the meantime, please stay healthy!

Want to know how much disability insurance you need? Drop us a note and we'll send you our free PDF!

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! 

Can I Take Out A Life Insurance Policy On Someone Else?

Every once in a while I will be having a conversation with someone who wants to know if it is possible to insure someone else, like an acquaintance. When this happens I don't really know if they are kidding or not, but I ask if there is some sort of relationship there between the two of them. Usually the answer is "no, you can't" which seems simple enough but people ask why.

Can you imagine the madness that would ensue if people just went around insuring the lives of people they didn't know but "looked sick"? And if insurance companies had to pay those claims they would be out of business quickly. 

There are some guidelines (and reasons for them) when it comes to insuring other people. One of the basic rules for this is that there must be an insurance interest. In other words, before you take out a policy on someone else, you must have a relationship, either familial, personal or financial, with that person. Of course we can take out a policy on a spouse or child, as people do that all the time.

And if you borrow money from a financial institution or an individual, they may require a policy to secure the loan. That is considered acceptable as well. 

Another piece of this is that most states forbid insuring someone over the age of 16 without their knowledge.  But if the insured is over 16 they must sign a form acknowledging they are being covered. This rule applies even if the insured is your 18 year old child.

Back in the old days big companies would buy life insurance policies on all of the employees, with the company being the beneficiary. The thought process was that if the employee died there would be "transition costs" associated with finding a replacement. These Corporate Owned Life Insurance (COLI) policies became controversial when family's in need began learning that the death of their loved one was profitable to their deceased loved one's employer.

The issues arose (as well as lawsuits) when the insureds were no longer in the employ of the company. At that point, any insurable interest went out the window. In the early 2000's several of these types of legal issues got some news publicity which shined a light on how many large corporate companies were secretly adding to their bottom lines.

Nowadays, COLI's are still used, but not covering every employee, including the janitor. (They were actually called "janitor policies" because of this). More often than not, COLI's are used to cover the lives of the top brass, like the board of directors or top executives, who are supposedly fully aware of the policy. I have even heard that the beneficiaries of the policies are split among the company and family members. That sounds much fairer.

With all of that said, here is a short list of people you can insure:

• Family. When the life insurance agent asks what your relationship is to the insured, immediate family is a no-brainer. Be aware that there are limits on insuring children but otherwise you should be okay.
• Former family. As in ex-spouses. If there are children involved the court may order that you maintain a life insurance on your former spouse to help with expenses if the former spouse should die.
• Parents. Yes, they are family but they may have let their life insurance policy lapse or expire and a final expense plan may be the best answer.
• Business partner. Buy/sell agreements are usually written up between business partners to help ease with the transition of responsibilities when one of the partners dies. These agreements are usually funded by a life insurance policy so one partner can buy out the deceased partners ownership. 
• Key employees. Key employees are the ones who contribute significantly to the business or may have some highly specialized skill. These people are difficult to replace and if they die unexpectedly the company could take a financial hit.

If you have any questions about any of these scenarios, ask your agent or drop us a note in the comments. In the meantime, stay healthy!

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!

Is Selling Insurance Hard? Part 1

Sometimes being a life insurance agent is difficult. It's hard to find prospects and talk them into meeting with us, much less presenting them with a plan they need but don't really want. Not many people want to acknowledge that they should buy a plan that, even though is in the best interest of their family, will add another monthly bill to their stretched out budget.

When I speak to people who sell other products or services I have to explain that insurance isn't like selling a car or a home. Those are things that people want and will actually save up for. No one saves up for life insurance or long term care insurance.  Let's face it, insurance is the one thing people buy hoping they never have to use it. 

With that in mind, you can understand why life insurance agents come and go. The person who sold you a policy ten years ago may not be with that company anymore. Heck, they may not be in the industry either. The persistency rate of agents after three years is about 10-12%, depending on whom you ask. That means that if a company hires 100 new agents today, three years from now maybe a dozen of those people will still be around. 

What makes it so difficult? There are several reasons, but it usually boils down to people who have their priorities out of whack. Not always, but often when I sit down and talk to a young couple with kids and a mortgage, it doesn't take long to realize that their "live in the moment" philosophy is great for some things, but not for insurance purposes. They want to have all of the new gadgets and devices, like phones and cars. I had one young man ask me, "What's the point of working to make money if I can't enjoy it?" 

Yes, selling insurance can be like pulling teeth.  So I have to paint a picture for them. First I have to dispel the myth that they will live forever. "Have you ever known anyone your age who has died?" I ask. It can be a dark subject but my goal is to let them know that things happen. A car can cross the center line at any time ending someone's life. A serious disease could suddenly arise. Things happen.

Typical questions I ask run like this:

• What would you do if your significant other should die suddenly?
• How would your family be able to pay the bills?
• Would your family be able to stay in their home?
• Would you be able to care for the kids and work at the same time?
• How much are you willing to pay to make sure your family will be okay?

Let's assume that I got through to this young couple. We all agree that they need some coverage and they have given me a budget to work within. A week later I return with a few options and present them. There is no "high pressure" selling here. Just a recap of what we have previously discussed and what I have to offer. Then it happens.

 

"I think we need time to think about it. Maybe a week or so." Punch in the gut. I'm pretty sure they didn't need a week to consider that nice phone in their pocket. But I have an answer for that one. 

 

Stay tuned and in the next installment I'll explain why it's okay to need a week or so to think about it. In the meantime, 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!

3 Frequently Asked Questions Life Insurance

Occasionally someone will ask me a question about insurance. More specifically, they ask about types of insurance and which is the "best" for them. After thinking about it, I have noticed that a lot of the same questions are asked, so I thought I would take the opportunity to help everyone with some broad stroke answers. Keep in mind that these are fairly generic answers and if you need a more specific answer to your situation, let me know. 

1. What is final expense insurance?

Final expense life insurance is exactly what is sounds like. It is designed to pay for expenses associated with dying, specifically funeral costs. A funeral can cost around $10,000, but that is just an average. Be aware that there are other costs associated with death, such as a hospital stay. I recommend to our clients that they insure themselves for maybe $15,000 instead, just to make sure their loved ones are not having to come up with those unexpected expenses out of their own pockets. 

Most final expense plans are comprised of whole life insurance, which can be expensive. Since whole life insurance typically builds cash value which is unnecessary for what the need is, you may be able to find another alternative. If you are healthy and can make it through a medical exam, you may want to consider a guaranteed universal life (GUL) policy. These policies don't build any cash value, but can be a lot less expensive. GUL's are guaranteed to be there for you as long as the premiums are paid.

2. Should I buy life insurance to cover my children? 

Yes! For some reason people think that putting life insurance on a child is a horrible thing. "I just don't want to think about my child dying" is the common refrain. Neither do we, but it does happen. As I mentioned in a recent post, it is sad enough watching parents suffer through the loss of a child, but it's just as bad attending a fund raiser to pay for the funeral.

A permanent policy that builds cash value is appropriate in this case. And it can be very affordable since the child is young and healthy (I assume most kids are "non smokers"). And when your child is older you can transfer the ownership of the policy to your now adult child, who can continue to pay the low premiums, or cash it out if they need to. 

A side note: Most insurance companies frown on large face amounts for children's life insurance. Generally speaking, $25,000 or $50,000 is more than enough and the underwriters will ask a LOT of questions if the policy is for more than that amount.

3. Do I have to keep my beneficiaries the same?

Absolutely not! As a matter of fact I recommend you review your life insurance every few years. Part of that review should be updating your beneficiaries. Changes in circumstances may lead you to decide to change your beneficiaries. Perhaps your current beneficiary has pre-deceased you, or your child isn't as responsible as you had hoped for. 

I had one client who was widowed and her only child was incarcerated. She felt as if she was paying for insurance that would benefit no one. I asked her if there was a charitable cause that she was interested in and she said her church was always in need. We managed to change the beneficiary to the church with enough put aside to cover her final expenses. 

Keep in mind that beneficiary changes can be made at any time, but some companies do require a "wet" signature, which means you may not be able to do it over the phone or online. 

If you have questions about life insurance, drop me a note in the comments section. And if you would like a quote you can click here and run your own. In the meantime, 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!

Getting Our Priorities Straight During the Holidays

With the holidays right around the corner I thought it would be appropriate to share a story from years ago when I was working for a very large insurance carrier. The agents were required to meet once a month and discuss our sales production numbers, and part of the process was that the veteran agents would give advice to the newer sales reps. 

As was usually the case in December, sales were down across the board. People generally don't buy much life or disability insurance before the holidays, with the exception of signing up for their benefits through work, so the agents were not too happy. I was one of them.

I shared how I would sit down with a couple to discuss life insurance, for instance, and would hear interesting excuses for not buying. "The holidays are coming and I need the money to buy a television," or "The new Iphone is coming out this week." 

That made no sense to me. "You have a wife and kids and a mortgage. If you were to die unexpectedly in the next few days, that cell phone isn't going to help your family stay in their home," I exclaimed to no avail.

Herein lies the problem for us insurance agents sometimes. We deal with people who mean well, and want to do right by their families, but their priorities are out of whack. The short term goals have overtaken the long term goals. Living in the moment is their mantra because "who knows what the future holds?" If they really want to know what is in store for them they should ask their elders. 

As I expressed these concerns to my colleagues at our sales meeting, a veteran agent laughed. "I know what you mean. Everyone is living in the moment, especially younger people. They think they are going to live forever and nothing will happen to them," he said. "But you have to help them understand that is wrong."

He continued to talk about the whole situation. "The holidays should be a time to emphasize the family. That should be their focus and if it isn't, then you need to make it their focus." It made sense. 

Of course we all want to have some nice gifts under the tree for the kids to open on Christmas morning. But trying to outdo ourselves (or anyone else for that matter) isn't what the holidays are all about. Wiping out our bank accounts at the end of the year over a phone or a television actually can make our festivities (and the new year) miserable. 

More importantly, all the gifts in the world can't make up for the loss of a loved one. So my message for you this year is this: It's fine to splurge a bit. This year has been tough on everyone, but remember that the holidays are about family, whether they are immediate, extended or otherwise. Make sure your priorities are in the right order. 

My job, as an insurance agent, is to make sure that your family will be able to continue to live comfortably if something should happen to you. Your priority should be making sure that your family is able to stay in their home and continue without you were to die unexpectedly. 

As I talk to my friends and clients I am learning that many have decided to cut back a bit on expenses this year. One less stocking stuffer or electronic gadget won't be missed. My wish for you and yours is to enjoy your family as much as you can. 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!

4 Things You Should Take Care Of Before You Die

As they say, nothing is certain but death and taxes. And as your tax rate may be able to go up and down, there isn't much you can do about your death. But you can make it a lot easier for those you leave behind if you have your affairs in order ahead of time. Depending on your situation, you can take care of some or all of these items early on and it doesn't have to cost you a fortune. 

The basics of taking care of things before you go to your eternal reward are not too complicated. Ask yourself the following questions.  

• Do I want a funeral? If so...
• Do I want to my family to have to pay for my funeral?
• Do I have any assets that need to be transferred at my death? For example, a home, business, collections, etc. 
• Do I want anyone to be excluded from those assets?

In other words, do you want to make these decisions now or do you want your family to have to try to figure it all out after you are gone? 

Years ago my mother passed away. She had a small collection of jewelry that included a few rings and broaches. I discussed this with my father and suggested he distribute the jewelry as he wished while he was still alive to hear "thank you" from the recipients. But I had ulterior motives as well. I didn't want to be the one having to figure out which family members would get what.

My father never followed through. At his passing the jewelry just got distributed, and I'm pretty sure that some family members were overlooked while others received small items that were intended for others.

With this in mind, here's a short list of things you should take care of before you die.

1. Buy life insurance*. Sounds obvious, but making sure your family can pay for your final expenses is very important. When you die, people will have their hands out asking for money, like the funeral director and the lawyer. The only one bringing you money will be the insurance agent. Make sure your beneficiaries are up-to-date and keep in mind that you can "assign" part of the proceeds to the funeral home.
2. Pre-plan/Pre-pay for your funeral. My father went to the funeral home and picked out his casket in advance as well as other items on his "final wish list". He failed to pay for any of it, leaving my sister and I to front the money until we received the life insurance proceeds.
3. Have a will. This keeps your estate from ending up in probate, which can be costly and puts your estate at the mercy of a judge. A will can alleviate any disagreements between family members as to who will receive proceeds and how much. For instance, if you own a business and one child actively works there while another child does not, you can put directives in the will that address the issue.
4. Have a living will. Again, you can alleviate a lot of tension in the family by making decisions ahead of time when you are lucid.

Making sure that you have taken care of these kinds of issues in advance will keep your family on speaking terms (as much as possible) and avoid conflicts. 

Nowadays, people have extended families, businesses, investments and other obligations that are hard to untangle if someone were to die unexpectedly. Letting attorneys and courts make those decisions can be costly and unproductive. Make sure your intentions are known and your loved ones will remember you fondly. 

If you have questions or comments, please let us. In the meantime, stay healthy!

*Life insurance trumps a will since it is a legally binding contract. 

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! Thanks!

My Personal Long Term Care Story Part 2

In my previous post I told the story of my aunt who spent 22 years in a nursing home after breaking her hip. Since her adult children were in no position financially to pay for her care, my parents took the reins. The financial part of her care was draining, but so was the emotional segment. Frankly speaking, my parents were burnt out.

When my aunt died, my mother called me and broke the news in a very somber voice. Knowing exactly what she was thinking I asked, "Do I hear dad in the background dancing a little jig?" Two decades of financial burden was finally off his plate.

My mother chuckled and said, "Shut up. We're supposed to be sad." She was sad at some level but at that moment she was glad that it was over. 

As I mentioned previously, soon after this I approached my parents about purchasing long term care insurance. Surely they would see the need after all they had been through, but that wasn't the case at all. In fact, my father was adamantly against the idea. "I'm not trying to make a sale, I'm trying to avoid going through all this again," I pled , but he wouldn't listen. "I don't care if you buy a policy from someone else, just get a policy!" I said.

Within a few years, my mother, who was now in her seventies, was in need of a knee replacement. At some point during or after the surgery she had a small stroke. The two week rehab became six weeks of rehab.

The stroke also triggered dementia. When she returned home, she insisted that family members, who were long dead, were at the house and she was going to serve them dinner. My father, who had refused my help in getting a long term care insurance policy was her caregiver. Over the next five years they settled in to a routine. I would drive two hours on the weekends to visit, sometimes with my own family, and sometimes not. It was all very stressful, as my father, I discovered, was a micromanager. 

My mother's health declined slowly over the years and my father wasn't doing much better. He developed a twitch in his hand and refused to discuss it. His weight dropped as he tried to manage the household, which he wasn't very good at doing, while driving my mother to her various appointments. Occasionally, he would ask me to fill in while he took care of his own medical issues. 

About five years after her stroke my mother had a health setback, which was looking pretty dire. That's when my father told my sister that "Maybe I need to look into that insurance your brother tried to talk to me about." She had to explain that it was too late, no insurance company would accept my mother's application. 

Seven months later my mother passed away. Now all of the attention was refocused on my father, who would later disclose that he had already been diagnosed with Parkinson's Disease. 

He insisted on living alone, and let it be known to anyone who would listen that he wanted to be left alone. My sister and I made attempts to help, which he only accepted when he was desperate. After a series of falls we intervened, saying that he needed to either go to a facility or have someone stay with him. He settled on a home health agency which was approximately double the cost of a facility. 

When I asked him how he could afford the home health care, he said that he still had the rental income from the properties my mother had inherited, along with his pension. Unfortunately, he also had more expenses and debt that he didn't let us know about. To make up the difference, he was dipping into his home equity line. We didn't know about that part of his finances until his death earlier this year. 

One of my regrets is that I was never able to convince my father that there was value in long term care insurance. Friends and family, who still acknowledge that he was very "difficult" man, try to tell me that I did my best, but as an agent, I failed in my job. 

Nowadays, we have long term care policies, life insurance policies with "living benefits", and short term home health care policies, which would have helped my parents immensely, if they had been open to the idea. If you don't want to be a burden to your family, take a serious look into these options. 

With Covid taking it's toll in facilities, home health care is more important now than ever. If you have a family member in your care, take precautions, wear a mask and wash your hands, like we've been told. Please be safe and enjoy your holidays with your loved ones so you can enjoy them next year as well. 

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! Thanks! 

Keeping Those Supplemental Benefits

I have spent a good portion of my insurance career working in the worksite benefits arena, helping people choose which insurance plans are best for them and their families. The employers decide which plans they want to offer and then we, as benefits counselors, sit down with the employees individually to discuss the different types of coverage. These ancillary or "voluntary" insurance products are deducted from their paycheck and the employees appreciate the convenience of it, but also are aware that their take home pay will be lower.

Many times the menu of coverages includes insurance policies for disability, cancer, hospital indemnity, accidents, critical illness, heart and stroke, and of course, life insurance. The employees can opt to cover themselves, a spouse, children or the entire family.

One of the many factors that the employees like is the "portability" of the policies, which means that if they leave their job they can take the coverage with them. And herein lies the rub. 

Not everyone leaves their job for greener pastures. Some may decide to move on to open their own business or to retire with a pension. For those people portability is a good thing because they probably can afford to continue paying those premiums on their own.

As we have seen with the Covid_19 epidemic, others may be laid off, fired, furloughed or just quit. For these folks, losing a paycheck may be the end of their coverage, as they probably will not have the funds to keep paying for those extra coverages. 

One of the issues here is that when these people originally purchased these plans, they were quoted premiums based on their pay frequency. In other words, if someone is paid weekly, the agent would say that a cancer plan is $6 each pay, because that is how much is coming out of their check. That doesn't sound as bad as $25 each month and most people don't do the math. 

A few weeks after the employee loses his or her job, they will get a notice in the mail asking them if they want to continue the coverage with a couple of options. One option is to have the premiums drafted out of their bank account or paid quarterly. Using our example above, the person who is now unemployed is being asked to write a check for $75. If they have not yet found another job, that money probably won't be in there budget either.

Another issue here is that many people simply do not have jobs that offer these benefits. For those individuals, who like us, are self-employed, small business owners or contract employees, voluntary benefits are not available. 

With this in mind, we have decided to begin offering our menu of supplemental policies on an individual basis. It doesn't matter if you run a business from home or out of your car. Everyone can now apply for coverages they want or need. A few examples are:

• Disability insurance - Business owners are usually working longer hours, no matter what the profession. If you are out of work and can't work, those bills don't stop coming in.
• Hospital Indemnity - These plans cover you for being in the hospital. With Covid_19 in the news lately people have started to express more interest in this plan.
• Cancer - We all know someone who has been affected by cancer and for many people a good cancer plan gives them peace of mind. 
• Accident insurance - If you are active, work a physically demanding job or have kids who play sports a good accident plan can help you with sudden out-of-pocket expenses.

When it comes to price, none of these insurance plans are going to break the bank. Head over to the Surf Financial Brokers website and check out our list of products. A few even have short videos explaining how they work. In the meantime, if you have questions about them, let us know. 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!

Do I Need An Accident Insurance Plan?

Everyday thousands of people seek medical attention for accidents large and small. From getting cut while making dinner and needing a few stitches, to serious automobile accidents, urgent care centers and emergency rooms are filled with people needing medical attention. 

I first got into the insurance business selling accident plans door-to-door in rural areas. And even though I didn't care for the policy at the time, I did see the value as our customers in the farming community would get hurt doing day-to-day chores. When I went to work for a large worksite benefits company I heard stories from people everyday about how they used their policies often, not just for themselves, but for their families. 

These stories were interesting and sharing them helped me to get more people to understand why they needed a good accident plan. For example, one nice lady was married to a firefighter and had purchased a plan that covered the entire family. Her husband was constantly getting hurt on the job, which was understandable. Burns, lacerations and other perils were a given in his line of work.

But when he was off the clock, he was just as vulnerable. He loved to hunt deer, and apparently had an issue with falling out of the deer stand on occasion. His wooden boat, which he used for fishing when the weather was good, had some rusty nails that he sat on several times. It got to the point where the wife felt bad for contacting me every time he needed to file a claim and made copies of her own claim forms. 

If you are active or have kids who play sports, an accident plan may be the right fit for you. Unfortunately, people sometimes forget they even have an accident plan. During a chance meeting with a client of mine he mentioned that his daughter had been playing basketball at the local rec center a month earlier. She went in for a layup and her legs were cut out from under her by another player. At the hospital she was treated for a small cut but had to have some minor surgery to repair a muscle tear. 

My client lamented that his medical insurance payed the majority of the expenses, but only after the deductibles and co-insurance minimums were met. When I reminded him that he actually had a policy in place to help offset those out-of-pocket expenses he lit up. We filed a claim and he was very happy with the results. 

Your occupation usually isn't going to be a factor and since there are no pre-existing conditions for accidents, people are covered right away. My clients come from all kinds of backgrounds, such as realtors, mechanics, artisans and business professionals. And you can choose coverage for off-the-job or 24 hour on or off-the job. 

Most of these policies even cover dismemberment and cover loss of sight, limbs (such as arms, legs, fingers and toes). There are even benefits for accidental death, which doubles if you were to die in a "common carrier", like a bus or plane. 

There is also an optional rider for disability income, which can help replace lost wages due to an accident. That can be important since for most of us, our most valuable asset is our ability to earn a living.

And just to add a little more value, there's also a wellness benefit. You're going to get a check up once a year anyway, so go ahead and get a few more dollars sent to you for that. 

Recently I met a woman whose husband had died while cutting down some trees in his yard. A large log rolled onto to him and he passed away in the ambulance on the way to the hospital. She told me that he had just turned down an opportunity to purchase an accident plan a few weeks before he died. Even though it was too late for him, she made a decision to purchase a plan for herself. 

I hope you seriously consider an accident plan. Especially since all the benefits go directly to you to spend how you need to, and not to the doctor or hospital. For a quick recap of some of the coverages from one of our carriers, click here. And if you have any questions please let us know. 

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!

Life Is For Living (Great Video)

As we go through September and wind down another Life Insurance Awareness Month (LIAM), I hope you all are doing well and keeping your spirits high. There is a lot going on in the world that can add stress to all of our lives. The Covid-19 pandemic, racial strife and political tensions are just a few things that are in the news. But there is also all of the daily issues we deal with personally, such as employment and financial burdens. 

The holiday season can be crazy in a normal year. As I watched the news a few nights ago I was struck by a story about how shopping for gifts will be different this year. A lot more online sales, less people in the malls and shopping centers. Of course, we all know that the emphasis should be on our families and loved ones, not spending money we don't have. 

I think back to a sales meeting years ago when I was working with a large insurance company. Most of the agents, myself included, were bemoaning the fact that no one wanted to buy life insurance during the holidays. No one wants to take on another bill when there's a flatscreen TV to be purchased. 

Our manager was leading the meeting and rolled his eyes at our complaining. "You don't get it," he said as if we were a bunch of crybabies. "You say you sell life insurance, but you don't understand who you are selling it for or why you are selling it!"

Then the manager launched into a lengthy diatribe which made sense to me. I will spare you all of the details but the essence was that we, as life insurance agents, were not communicating our message properly, that we were not selling something to be used by the client (assuming that was who we are insuring), but instead it would be used by the client's family. The only thing the client would get out of it was the peace of mind knowing that if something should happen to them, their spouse and children would be able to stay in their home and continue their lifestyle without more financial worries thrown onto them. 

It all made sense to me, but how does one communicate that message during the holidays? As a father and husband I have my policies in place, but I also want my family to enjoy a few gifts that I can offer. The most important present, of course, is not one that can be opened (unless one opens a policy packet). 

So I ask you to do one thing for your family from now. If you do not have life insurance, use our life insurance quoting calculator in the upper right of this blog and get a ballpark estimate* on how much it would cost to ensure your family would be okay if something were to happen to you. There's even a button on there to find out how much you need. 

And if you do have insurance already, check to see if you have enough. Odds are you don't, and that is okay, as long as you do something about it. 

Check out the video and book a phone appointment with us to discuss how we can help you can give your family the best gift this year. 

*All rates are subject to underwriting.

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!

September Is Life Insurance Awareness Month

The life insurance industry has designated September as Life Insurance Awareness Month (LIAM) , which is when we in the business do our best to educate people about the different type of policies and the many ways they can be used.

For instance, did you know that the cash growth inside a permanent life (universal or whole life) is tax-deferred?  Or that traditional life universal life policies' growth is based on interest rates?

As part of the promotion, Brooke Shields is once again the spokesperson for LIAM. She saw firsthand the unique challenges that arise when someone passes away without life insurance when she served as an executor of a friend's will. 

And now, with the reality check provided by the pandemic, Brooke's message is that there is no time to wait. People need to protect their families with life insurance now. But don't just take my word for it. Check out the video. 

With this in mind, it makes sense that the theme for this year's LIAM is "Reality Check: The time for life insurance is now!" Life changes quickly and priorities shift. Life insurance can help you protect your loved ones financially-now and for the future. Get it now. 

How many friends and family members would you guess have life insurance? Do you have it? The answer is that only 54% of households have life insurance. And 44% of people believe they would struggle to pay living expenses within six months if a primary wage earner died. (Alarmingly, 28% said they would feel the strain within one month and 11% would feel it within one week, according to a 2020 Insurance Barometer Study/LIMRA. 

Knowing the benefits of life insurance, as well as the risks of going without it, why do so many households remain underinsured? Maybe it is because so many people just do not understand how life insurance works, the cost and the benefits. 

The perception: They think life insurance is expensive.

The reality: It really isn’t. Many people can be insured for the price of a daily cup of coffee.
The recommendation: Book a phone appointment to one of our representatives at Surf Financial to get a free life insurance quote. Or check out our free quoting tool in the upper right of this page. We’ll work within your budget to develop a plan that’s right for you.

The perception: I don’t need life insurance.
The reality: Life insurance has more uses than you might think. It can cover bills, pay for funeral costs, replace income in a household, serve as an inheritance for a loved one, fund a child’s education, provide an important donation to a charitable organization and so much more.
The recommendation: Everyone could benefit from life insurance. Consider the impact you make- providing wages, caring for your family members and friends, volunteering for local causes and more. What would happen if it stopped? Life insurance can help your loved ones avoid a financial burden.

If you have questions about the types of life insurance or the ways to use it for estate planning, tax strategies or other uses, please let us know. With all the crazy things going on in the world right now, the one thing you can depend on when it comes to the financial security of your family is having a proper life insurance policy in place. Covering you, as well as your family, could be one of the greatest gifts you can provide for you loved ones. 

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!

Insurance News You Can Use

Recently a few items of interest crossed my computer screen and I thought it would be good to share with you some news from the world of life and health insurance. As they say, knowledge is power, and being a knowledgeable consumer of insurance is always a good thing. So here are a few bits of news with a sprinkle of my comments mixed-in.

Let's begin with some troubling news from North Carolina. The insurance commissioner there, Mike Causey, has levied a penalty of $1.1 million on Gerber Life for claims processing violations and delays. The company is also paying $2.5 million in additional recoveries and interest to claimants. 

The insurance commissioner's office examined around 300 claims from over seven years, and they found a lot of violations with Gerber Life's accidental death and dismemberment policies. According to US News and World Report, "Biological parents were initially denied benefits for children and had to send in clothing receipts and other unnecessary documentation to prove a parent-child relationship." 

Also, the claimants had to sue to get their benefits and the company didn't pay for any of the attorneys' fees, nor did they pay interest on untimely paid claims. 

My thoughts on this are as follows: This is the kind of thing that makes my job harder than it already is. Mistrust grows from news of a company not wanting to or dragging their feet when it comes to paying claims. I'm glad that the insurance commissioner's office was able to find this problem and fix it, but that's just one insurance commission out of fifty. Are we to assume that Gerber Life only dragged their feet paying claims in North Carolina? 

In other news, one of our carriers, Guaranteed Trust Life, is changing the age eligibility requirements for their Short Term Home Health Care plan. Beginning September 3, 2020, the minimum age will be raised to age 61. The rest of the policy will remain the same with benefits like a prescription card and access to their  "Ask Mayo Clinic" symptom assessment tool. 

From my perspective, I love this policy, but I wish they didn't raise the age. Statistically, about a third of people who are chronically ill are under the age of 65. As many people in their 40's and 50's see their parents need care and realize how expensive it can be, these people begin looking into their options for Long Term Care and Short Term Care products. I like to call these folks "forward looking" and hate seeing their choices for good plans decrease. 

My gut tells me that the Covid-19 pandemic has affected the number of claims filed, but I'm not completely sure.

The Guaranteed Trust Life product is priced so affordably that I had many people who were not yet 60 years old interested. The good news is that the carrier offers a full line of other ancillary products such as cancer and critical illness plans that are still available to many people of all ages. 

One other bit of related news is that Covid-19 is impacting pricing and benefit options for those considering long term care insurance, according to the American Association for Long Term Care Insurance (AALTCI).

According to AALTCI director Jesse Slome, "Insurance companies are raising rates for new applicants, they are changing benefit options and in certain states limiting the ages of applicants."

With over 40,000 deaths in nursing homes attributed to the virus, it's easy to see why the insurance carriers are concerned. These facilities are overwhelmed and, as a result of the virus, also understaffed. 

As you can see, we at Surf Financial Brokers try our best to stay on top of the news in our industry. Look us up on the web and feel free to comment below. 

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!