My Discussion With Michael Seabolt

I recently met Michael Seabolt through a LinkedIn insurance professionals' group. As I am an agent who works directly with clients, I thought it would be interesting to give you some insights from the perspective of someone who works behind the scenes with agents and financial advisors. 

Michael Seabolt is currently the managing member of Flower Risk Advisors, LLC, a cannabis industry focused tax and risk mitigation consultancy. In this role, Michael consults with cannabis business owners and executives, and their tax and legal advisors, providing risk and tax management solutions for the legal cannabis and hemp industries.

Michael also is a contracted consultant with Bell & Associates Consulting, LLC is Phoenix, AZ which is an independent insurance brokerage firm representing over 70 of the largest life insurance and annuity carriers. In this capacity, Michael consults with financial intermediaries (financial advisors, insurance agents, tax and legal advisors) to provide tax mitigation and risk protection solutions for their business owner and high net worth clients.

Michael has over 25 years of professional experience in the financial services industry, primary in wholesale distribution of managed money, investment advisory and insurance space. His experience includes VP of sales and business development for an international asset and wealth management firm. In this role Michael developed relationships with financial advisors, family offices, insurance and trust companies and private banks to broaden product offerings for their institutional and high net worth clients.

Previously, Michael spent nine years with a London based hedge fund and wealth management firm. The position involved extensive international travel with offices in London, Hong Kong, Nassau and Switzerland. His responsibilities here included private client meetings, conference presentations, panel board advisory and executive level relationship management.

In his free time, Michael enjoys spending time with his three children. You can find them on the ski slopes in the wintertime and the golf course in the summer.

With an impressive resume like this, you can understand why I wanted to discuss with him how his part of the insurance industry works.

Thanks for taking the time to talk today. You have an very interesting background, but I'm curious as to how you got into the insurance industry.

I've been in the financial services industry for 25 years, the last 9 of which have been in the insurance industry. I spent 5 years with Allianz, one of the world's largest insurance companies, covering US broker-dealer distribution. I've had my private consulting practice for the last 4 years, focusing on utilizing life insurance for tax and risk mitigation.

How do you find your prospects?

My clients are insurance agents, financial advisors, CPA's and attorneys. I help them with their largest clients and most complex needs. 

How do you prepare for a client meeting?

I perform stringent due diligence on the financial professional with the goal of understanding their practice so I can be most effective in our meeting. 

We met through LinkedIn. Have you had much success with it?

LinkedIn is a good medium for connecting with colleagues in the industry.

I agree. I think too many people avoid networking within their own industry sometimes because some of those people are competitors, but I've gotten some great sales tips and advice.

Not counting my book, do you recommend any good books on sales?

"Tax Free Retirement" by Patrick Kelly and "The Power of Zero" by David McKnight. 

I also enjoy Patrick Kelly's books. He has some good videos on YouTube as well. That leads to my next question. Do you have a mentor? How have you become a mentor for others?

I have been fortunate enough to have had several mentors and sources of influence in my career. I enjoy "paying that forward" and train agents and advisors on how to optimize their practice and gain traction in the business owner and High Net Worth client channel.

Has Covid affected your practice?

I have been unaffected personally from the pandemic, however my practice has flourished. Mortality risk has become front and center in our daily lives and clients appreciate the benefits of life insurance and long term care protection. The massive Federal debt spending which injected capital into our financial systems will lead to significantly higher taxes in the future. We need to educate and empower our clients today to protect themselves for this coming tax risk.

I agree. Sooner or later we're going to have to pay the bill. On a related note, what did you do with your first commission check?

1999 Chateau Haut Brion and aged petit filet.

That is great! That must have been one nice commission check. Last question, have you ever had a strange or unusual encounter with a client?

I am fortunate to have engaging conversations on a daily basis. I will share a story of a client whom passed away last year from Covid after recently purchasing a life policy from us. I felt blessed to be able to deliver a ix-figure death benefit claim check to his surviving spouse. There are fewer more fulfilling moments in our industry.

When it comes down to our business, that is what we do. Thanks for your time! I am sure our readers appreciate this information as well. 

Michael can be reached through is website at www.consultbell.com

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!

My Discussion With Pat Ardern

One of the things I appreciate about LinkedIn is the opportunity to meet and network with people who are in the same industry as myself. I recently was afforded one of these opportunities when I had a chance to talk with Pat Ardern. 

Pat Ardern is the Branch Office Supervisor of the Transamerica Financial Advisors branch in Stillwater, Oklahoma and she supervises securities licensed reps throughout the state. She enjoys travelling and spending time with her two children and grandson, and she is active in the community and her church.  

Below is my conversation with Pat.

First off, I'm curious as to how you got into the financial services industry.

 

I was laid off in 2007 after the company I had worked with for 9 years was purchased by another company. As I watched the furniture being carried out of our office, I felt like someone had died. The next morning I woke up with the question, “What do I do now?” This was a transformative event for me which brought me to the decision that “This will never happen to me again.” I knew I needed to find a way to have my own business.

At the time, a friend of mine was studying for her securities license with a large, well-respected firm. I asked her if I could look at what she was doing. The financial services industry had always intrigued me, and coming from an accounting background and being a numbers person, it seemed like a fit. I really liked the concept of "recurring income"! The biggest “fit” was that I would be independent and calling my own shots. I came on board with the firm and have never looked back. This industry is not easy, but is a chance to see what you’re made of. I can’t imagine working for someone else ever again.  

 

Tell me how you find your prospects.

I work primarily from referrals. Networking is the way I started out, and I built referrals from there. Everyday encounters yield great new relationships as well. As my book of business grows, referrals from current clients are priceless. Our firm is cutting edge with technology using videos, livestreams and webinars to extend our reach. 

How do you prepare for a client meeting? 

The first client meeting is a "financial needs analysis". There are basic financial concepts that everyone needs to be using in their plan. I have a series of questions that assist me in learning about their current situation, as well as current and future goals. We determine their "FIN" (financial independence number). The FIN number is like a GPS. If you don't know the destination how will you know the route?

I like that. We all need to know where we are going. What kind of networking works for you? Online and/or networking groups? 

Both in person and online networking are beneficial. Whichever you use, the goal is to meet people and build relationships. We all meet new people all the time, and most are open to striking up a conversation. People like to talk about themselves, so it pays to be a good listener.

You are correct! Not talking and listening is one of the hardest parts of this job for me.  

Do you recommend any good books on sales? 

I like Grant Cardone's sales material. "Think and Grow Rich" by Napoleon Hill is a must read. A couple of other books I'd recommend are "Evangelpreneur" by Josh Tolley and "Think Like a Monk" by Jay Shetty. I think in anything success is from the inside out.

It's important to share that kind of learned knowledge. Do you have a mentor? How have you become a mentor for others?

 

I have a few mentors in our firm. Our team building platform exposes me to many extremely successful mentors who have been in our business for 30+ years. In turn, I duplicate the tried and proven system with my team.

Has Covid affected your practice? 

 

Our business has actually increased during Covid. One reason is that we were positioned perfectly with digital resources so we didn't miss a beat. Secondly, I think people were more open to take the time to talk finances while they were working from home and not as socially active. Some tended to become more thoughtful about what's important and their planning for the future. We have no regional restrictions so we can do business anywhere via Zoom.

What did you do with your first commission check?

  

I remember my first check as being less than $100. I spent it, but that first check was priceless. It showed me that what I was doing was legit and gave me the confidence to keep working to make multiples of that check.

Have you ever had a strange or unusual encounter with a client?

I inherited an old annuity contract for which the writing agent was no longer active. The contract owner was a very well known, famous if you will, person. At first I assumed it to be someone who had the same name as the well known person, but it turned out to be the "celeb". I had a nice lunch with the individual and we have talked several times since. It's a small world. 

I'm sure this person appreciates your discretion. 

I know you like to promote financial literacy. At what age do you think kids should start learning about finances?

The best way to teach kids about finances is to be a good role model. That starts very early as our kids watch what we do from day one. I think a parent can teach their child to have the three buckets, Save, Give and Spend from the very first time the child acquires money as a gift or for doing chores.

How can financial literacy be taught to adults who have never really been exposed to the subject?

The unfortunate fact is that most people were never taught basic financial concepts. It's not taught in schools. Financial education is a very big part of what I do for clients. Everyone needs to know the basics so they can move ahead. Another tool I use is our book, "How Money Works, Stop Being a Sucker". A very easy read. it's written so young teens can understand it. We believe this little book is changing lives for generations.

Thanks for sharing all of that great information with us Pat! I'm sure our readers appreciate your insight.

If you would like to reach Pat, her contact information is on her website at http://tfaconnects.com/patardern. 

Her financial literacy page is http://wealthwave.com/patardern. 

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!

Should I Buy Term and Invest the Difference? 2023

There is a school of thought that when it comes to life insurance, people should "buy term and invest the difference". What does this mean and why should it matter when you are trying to secure your family's finances?

First off, the people who like to preach this method of buying life insurance have some sort of issue with purchase permanent life insurance. Whether it is whole life or universal life, they think that the cost too high. These people also think that the growth inside the policy, building cash value, is not as good as putting your money in the market. 

One of my pet peeves in the financial services industry is the large number of financial gurus who give generic blanket advice. These gurus, who are prevalent on TV, radio and other media, including books, seem to feel that everyone is in the same boat. As someone who has been working in the insurance industry for over 20 years, I can attest that financial situations are like fingerprints - no two are alike.

Another issue that many of the agents out there who like the "buy term and invest the difference" mantra are captive agents who work for companies that do not offer good permanent products. Even worse, these agents have been given bad information as to how some permanent life insurance products work by their managers. I have worked for a few of these companies and have heard it myself. 

As I have said in the past, all insurance products have a need somewhere, but not all insurance products are for everyone. This applies to term life as well. Term life insurance is great if you can quantify your specific need. An easy example of this is a loan that needs to be secured. If you have a 30 year mortgage on your home, a 30 year term policy fits the bill, because if you were to die your family could pay off the note. The lender will be happy to know this too.

For many families, there are more things going on than just a mortgage though. There may be other debt, like credit cards and car payments. A young family may want to consider education costs of their kids as well. After doing the math, a 20 year term policy may do the job while the debt is there and the kids are still living at home.

Let's assume that our young family did the math (with their trusted life insurance agent, of course) and realized they needed $300,000 worth of life insurance. A term life policy may cost them around $50 each month (these are estimates). But a permanent policy would cost around $150 each month. According to the gurus, they should purchase the term policy and put $100 into an investment each month. What kind of investment? Mutual funds, hopefully tax deferred, like an IRA. 

Here's the main problem with this strategy. They almost always will buy the term life policy (if the agent has effectively communicated the need) but they rarely do the investing part. "Check back with me in a few months," is the refrain when it comes to putting that extra $100 somewhere. It may be a budget issue or the client just isn't sure about the markets. Either way the plan is not complete.

People have varying degrees of risk tolerance, which is fine. As mentioned, no two situations are the same. Not everyone wants to be in the market and the ones that do can do so through online trading platforms nowadays. 

So what is a suitable alternative that will help a client efficiently and in their budget? Drop us a note or book a short phone appointment to discuss. In the meantime, please 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!

What Keeps You Up At Night?

One of the hard parts of being an insurance agent is getting people to have an honest conversation when it comes to their finances and how their situation affects future decisions. Some clients either don't want to discuss their goals or simply have not taken the time to figure out what their goals are. 

There have been many times when I have sat down with someone and asked, "Where do you want to be three years from now?" The look on the client's face is priceless. They really don't know. I'm not trying to embarrass them or make them feel bad, but the point of the conversation is that many people are just meandering through their financial issues, paying bills as they come in and buying stuff when they have money put aside.

Just as you would think, most people don't have a clue what their goals are. They say that they haven't really considered it before. Here's an exercise you can do (it's the same one I use with my clients) and it will help you make a game plan.

Take a sheet of paper and put today's date at the top. Next to that, put the same date but three years from now. Underneath the dates make three columns, with headings "Personal, Professional, Financial". Under each heading just write what you want to happen within the next three years. 

There are no wrong answers. I've had people give me all kinds of answers from saving $100,000 (financial) to owning a new boat (personal). One lady who was a cosmetologist put "open a cosmetology school" under the professional heading. Knowing what the goal is helps tremendously but that is just the first part of the conversation. 

Then I ask what would happen to that goal if the client were to die unexpectedly or to become chronically ill. Will they still be able to reach those goals if a potential landmine were to get in the way?

Every once in a while one question will get the client to open up and that question is "What keeps you up at night?" As a husband and father, there have been many times when I have lain in bed thinking about retirement, sick family members, paying for my child's education and a long list of other issues that can, and probably will, show up down the road. It can be overwhelming.

Another part of this is that people will hear advice, through friends or the media, which may sound good, but may not be applicable to their situation. One of my pet peeves is "financial gurus" giving generic advice. A single dad who makes under $50,000 a year and has a sick parent will have an entirely different situation than a married couple who have a six-figure income and no debt. Much like fingerprints, no two financial positions will be the same.

When I sit down with someone and they say they want a 20-year term life insurance policy for $100,000, I ask questions like:

• How did you decide that was the amount of insurance you needed?
• Will that cover any debt you have, including your mortgage?
• Will that amount replace your income?
• What do you want to accomplish with that amount of coverage?

Sure, this line of questioning can make someone feel uncomfortable, but my job is to make sure that the client gets what they need. Taking the time to get an accurate number for the face value of a life insurance policy will make sure that the client is getting what they actually need.

Don't let this stuff stress you out. Sit down with your agent or make a phone appointment to discuss how you can do what is best for you and your family. And in the meantime, please 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!

Can I Get A Quote For Cancer Insurance?

First off, I hope everyone had a great Christmas! It's definitely been a tough year for everyone and as we move toward 2021 my wish is for all to be healthy and happy.

And speaking of healthy, we are currently enduring one of the deadliest pandemics in recent history. The cacophony of news coverage regarding Covid-19 is nearly drowning out the other health issues we face, including cancer. Unfortunately, there were some celebrities we lost this year due to cancer, including Chadwick Boseman, Eddie Van Halen and Alex Trebek. It seems as if the only times we are made aware that cancer is still with us is when we hear that famous people die from it.

As a vaccine for Covid-19 becomes more widely available, our population will still need to stave off cancer and be prepared for treating it. Statistically, 1 out of every 2 men and 1 out of every 3 women will face some sort of cancer in their lifetime*. While the medical side of the treatment has made great gains, the financial strains it puts on families is still enormous. 

This is where a cancer insurance plan can be a great fit for you. First and foremost, these plans are affordable. A few dollars each month can cover an individual with or without a spouse, as well as children. For those people who are concerned that cancer runs in their family, that is important. 

Also important is what a cancer plan can cover. Out-of-pocket expenses related to cancer can be exorbitant. For example, medical insurance may not cover the cost of experimental treatments or some medications. It most certainly does not cover the cost of travel or lodging if someone is receiving treatments in a hospital not located in their own town. All of these items add up. Not being able to work and losing income only makes the situation worse. 

Of course the financial stress on a family as a result of a cancer diagnosis is not the priority at the time. The main goal is to be cancer free and survive. But alleviating the money problems as they happen can be fruitful after treatments end and relieve stress. 

So what can one do to make sure they (or their loved ones) don't have to face the harsh reality of financial insecurity of a cancer diagnosis? The first step is to find a cancer insurance plan that meets their needs and fits in a budget. 

When discussing needs, there are several questions to be answered. 

• Are you trying to cover yourself, you and a spouse, or the entire family?
• Would you like your policy to pay a lump sum of money all at once or would you like to receive your benefits as you are undergoing treatments?
• Does the plan offer optional riders which can increase or decrease my premium?

This is why we are in the process of adding a cancer insurance quoting tool to our website. It gives you an opportunity to see how a "treatment option" plan works, along with the benefits and optional riders. From there, you can click on the "Get Quote" button and enter the information needed. If you like what you see you can even proceed to beginning the process of applying. On the whole, the process can take about 10 minutes. 

Of course, if you have questions about any of this, we are available to help. In the meantime, please stay healthy!

*American Cancer Society

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!