Is Life Insurance Through Your Work Enough?

Many of us who are self-employed don't always get to enjoy the perks of group benefits, like medical coverage and paid time off. But for those who do have jobs where the company pays for extra perks, those perks may be good, but not awesome.

One of the issues I run into quite often with people who have "bennies" through work is the idea that their group life insurance program is all they need. For some it may be, but for many people that coverage is much less than what they actually need and it more than likely won't be there if these people leave their jobs.

One of my first real jobs was working for a large company that did offer life insurance. They offered me coverage of my annual salary, which was next to nothing, and I could buy additional coverage, like 2 or 3 times my salary for a few dollars each month. There were no exams or health questions, and I got as much as I could for the price of a coffee at Starbucks. I was single and didn't have much debt, so I figured that if something were to happen to me, my family would have enough to pay for a funeral and maybe even have some hor d'oeuvres. In other words, the life insurance plan was appropriate for my needs.

However, there were co-workers of mine who were married and had children. These folks also had mortgages, car payments and other expenses that I didn't have. I seriously doubt that the small amount of life insurance offered was enough to give their families the safety net they needed if they were to die. And when the company was sold and employees started to jump ship like rats, they lost the little coverage they had.

Having life insurance coverage through your work is good, and most agents will take that into account when trying to determine how much you actually need. There are several other items to consider when you calculate your family's needs.

1. Outstanding debt. Mortgage balance, credit cards and car payments should be included.
2. Final expenses. Funeral costs and other costs associated with dying. For instance, many people will spend time in the hospital before passing away, and those deductibles may need to be met.
3. Replacing lost income. Your survivors depend on your income to take care of everyday expenses, as well as those bills that happen to pop up unexpectedly, like repairs for appliances and vehicles. 
4. Education costs. If you have small children, you may want to include the costs of higher education.

Having life insurance through work is good, but making sure you have enough coverage is even better. If you aren't sure how much you need, Our life insurance quoting tool has a built in calculator that will help you out. Give it a try and 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!

Disability Insurance Awareness Month Part 1

May is once again Disability Insurance Awareness Month, when the insurance industry tries to let the public know the importance of having a disability insurance policy. As I say whenever I sit with a client or talk to a group, the Holy Trinity of insurance is your life insurance, your health insurance and your disability insurance (DI). That's how important it is!

Think about it. If you are sick or hurt and are not able to work, your bills just keep coming. No one is going to let you have a free pass on your car payment, mortgage or phone bill because you are a nice person. In essence, having a DI plan in place is paycheck insurance. That's why people call DI "paycheck protection".

How does it work? Depending on your employment and how you get paid there can be variations. The more common scenario is that you buy a group plan through work or your employer pays for it or both. I have seen instances the employer pays for Long Term Disability (LTD) but the employee pays for their own Short Term Disability (STD) policy.

These types of policies usually pay up to 60-70% of your gross income. Keep in mind that if your employer is paying for your policy and you should start receiving benefits, those benefits will be taxable. This is also true if you purchase your plan through a "worksite*" insurance company and they pre-tax your premiums. 

Short term DI usually pays for the first 3, 6 or 12 months of a disability, while long term DI will start paying after those dates. The key is to make sure you have coverage seamlessly throughout the time you are out of work, which is determined by your physician. 

Also, group plans will typically cover maternity for 6 weeks (8 weeks if a caesarean is called for). Too many people will drop their DI plan when they decide that they aren't having any more children. I always encourage people to keep their policy, as it is not "baby coverage" as many seem to feel.

On the other hand, if you are self-employed or a 1099 employee, like a realtor or insurance agent, you may need to look into an individual DI plan. These are structured a bit differently in that rates will be determined based on factors like:

• Your occupation. A welder or a roofer will pay more than a secretary because their job is more dangerous. 
• Your health, age and tobacco usage. Just like life insurance, the insurance company wants to know if you are a good risk or not. 
• Your income. Determining your benefit amount is dependent on how much money you earn, so the insurance carrier may ask for a copy of your tax returns. We have one company that ask for it when you file a claim. 

Another important factor is the "elimination period", which is like a deductible, but in time instead of money. If you have a 14 day elimination period, that means that the policy won't start paying out benefits until the 15th day of your illness or accident. Elimination periods can vary from 7 days to 6 months, and like the deductible on your car insurance, the higher you go, the less the policy will cost you.

Also, keep in mind that individual plans will not cover maternity.

In Part 2 of this topic we'll discuss how to determine how much coverage you need. In the meantime, please stay healthy!

*Companies that offer voluntary benefits like DI, dental, vision and other ancillary insurance products. 

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!

7 Times When You May Need Life Insurance

There are times in our lives when we need to start looking at purchasing a life insurance policy. These are events that can make a difference in our lifestyles, spending habits and social habits as well. And many times these changes do not only affect us, but our loved ones and business associates as well. 

With that in mind, here is a list of times when you should start to seriously look at life insurance.

1. Married or getting married. This is a no-brainer for most people. Becoming a spouse means that, for most people, purchases and financial decisions will be made jointly. Homes, cars, and other large purchases will typically be in both names, as well as credit cards, bank accounts and various other items. Should one spouse die too soon or unexpectedly, the surviving spouse will be obligated to pay off any debts.

A friend of mine was widowed several years ago only to find out that his deceased wife still had a balance on a credit card he was unaware of. In his state, he was legally obligated to pay off her debt. Luckily for him, it was not a lot of money, but if it had been it could have affected his credit poorly.

2. Parent or about to become one. A comedian once said that kids are like really expensive pets. Nothing could be truer. The estimated amount of money to raise a child in this county varies from around $175,000 to $250,000, depending on which study you read.  No matter which source you choose to use, the numbers are high. And if you are planning to pay for education costs, the numbers can be increased from 50-100%, depending on the school your child attends.

When I sit with a parent and discuss their life insurance needs we take into consideration the costs of raising a child as part of the overall plan. A single parent could be burdened with a huge financial issue which can be easily avoided with a life insurance policy. 

3. Purchasing a home. While most people think of buying a home as a good thing, it can be a huge expense. Maintenance, repairs, taxes, insurance and other expenditures will sneak up on many new homeowners. Again, why leave your significant other with shouldering all of those expenses when it can clearly be avoided. 

4. Changing jobs. Depending if you are getting a raise or taking a pay cut, you may have to adjust your financial plan, including your life and disability insurance. If you are getting a pay increase, you may start spending more money, which incurs more debt. Taking a pay cut may mean you still have debt to pay but on less money coming in. Either way, making sure your loved ones don't get stuck with those bills is what life insurance is for.

5. Retired or planning for retirement. Many times I see people who have outlived their term life insurance policy, which is a good thing, but they still need some insurance for their final expenses and maybe some money for estate taxes. In these cases, people usually look into Final Expense insurance, but that can be pricey. If you are still healthy, a Guaranteed Universal Life policy can save a lot of money and accomplish the same goal. 

6. Newly single. If you are getting divorced and are obligated to pay child support, the court may want you to buy a life insurance policy with your ex as the beneficiary. 

7. Starting a business. Opening a business can be an expensive endeavor, and whether or not you have partners, you still may want to look into a life policy. 

I met a nice lady a few years ago who was up to her ears in debt because her husband decided to open his own medical practice. She begged him to buy a policy to cover the debt he incurred with rent, equipment and payroll. He kept putting it off and a few months later, while cutting down some trees in their yard, a log fell on him. She was stuck owing money that could have been paid out.

The same can be true of business partners. If one dies, the other partner(s) may want to buy out the deceased partner's interest. Otherwise, they may end up with the widow as a partner, which may or may not be desired by either party. A buy/sell agreement funded with a life insurance policy can fix that problem.

As you can see, a life insurance policy can help you and your loved ones avoid many problems down the road. And it can be less expensive than you think. If you want to see how much a policy can cost head over to our site and run a quote. 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!

Do I Need Business Overhead Expense Insurance?

 

When I speak to groups about their insurance, I often mention "Holy Trinity" of insurance, which is their medical insurance, life insurance and disability insurance. The last one, disability insurance, I tell them, is just is important as the other two, because if one were to get sick or hurt and couldn’t work, the bills don’t stop coming and will need to be paid. Disability is basically paycheck insurance.

But what if you are, like me, self-employed, a 1099 employee or a business owner and don't have access to a group plan? What would happen to your business if you were unable to work?

Which is why I like to bring up Business Overhead Expense  (BOE) coverage. It’s an insurance product most people probably haven’t heard of before even though it's been around for a long time. And it definitely one of the most undersold policies out there, probably because there are agents who don’t even know about it.

Business overhead expense insurance is designed to keep things going when a disability or illness requires you to be temporarily absent. This is different from personal disability insurance, which makes payments directly to you to replace lost income if you can’t work.

If you own a business, it’s important that you understand how BOE works so you can decide if it’s something you need.

BOE is a type of insurance that pays benefits to your business if you’re unable to work. For example, if you’re in a car accident and are seriously injured, or you’re diagnosed with a serious illness, your policy’s benefits could kick in to provide the business with cash flow while you recover.

This type of insurance is typically used to help manage your business’s day-to-day expenses. It helps your business continue as usual even when you can’t be there.

What BOE Insurance Covers

BOE is business-specific, meaning it applies to expenses related directly to running your business. The types of expenses you can use business overhead expense insurance to pay include:

• Rent or lease payments
• Loan payments
• Insurance premiums
• Utility bills
• Custodial services
• Payroll for employees
• Tax obligations
• Business credit card bills

There are, however, some things that overhead expense insurance is not designed to cover. For instance, these policies don’t extend to expenses related to improving or expanding your business, such as buying new equipment or opening a second location.

Overhead expense insurance also doesn’t cover your salary. That’s why you would need an individual policy on yourself.

It’s worth considering purchasing this type of insurance if you’re the person who’s primarily in charge of running your business. Having an overhead expense insurance policy in place means the bills continue to get paid for the business when a disability or illness puts you on the sidelines.

Depending on the terms of your policy, your insurance company could pay benefits for up to two years after you file an eligible claim. That can be helpful if you have a serious disability, illness or injury that requires extensive rehabilitation or physical therapy.

Keep in mind that not every business owner may qualify for this type of insurance. If you’re self-employed as a freelancer and run a business from home, for example, you may not be able to purchase a policy. You may have to stick with a regular personal disability insurance policy instead.

There are advantages associated with having this kind of insurance for your business.

Here are some of the key benefits of BOE insurance:

• Your business can remain open even when you can’t be there to run it
• Essential business expenses can be paid for using policy benefits, allowing you to preserve your business’s cash reserves
• Being able to meet payroll means you have a better chance of retaining key employees
• A BOE policy decreases the odds of having to dip into personal savings to cover business spending
• Premiums paid for coverage may be tax-deductible
• Business expenses paid with premiums may also be tax-deductible

In terms of the downsides, here are a few things to keep in mind:

• Policies don’t pay benefits to you directly so you’ll still need separate disability coverage for that
• Benefits typically have a time limit of 2 years and can’t be paid indefinitely
• Any benefits you receive may be considered taxable income for the business
• Policies may enforce a maximum monthly benefit limit, which may be less than what you need to continue operations

As you can see, the pros generally outweigh the cons but they still need to be factored in. And you also have to consider the potential return on investment for purchasing this kind of coverage. Having it can be a safety net if you get sick or become disabled but if you never end up using your coverage, you may feel as if you’ve paid premiums for nothing.

The key advantage to having a BOE is that it gives you time to make a decision if you are disabled. You probably won’t know when or if you’ll recover, or if you should shut down the business, sell it or keep it open. That 2 year benefit window gives you time to figure it all out.

If this is something you think you need, drop by our website and make an appointment to have an agent call you. Or you can leave a question on our contact form. 

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!

It's Open Enrollment Time

It's that time of year again when a lot of people are making changes to their various medical plans. The choices you make during open enrollment will be affect how much your medical bills will be next year, unless you are fortunate enough not to have any. 

This past February I experienced my first major health event and spent nearly a week in the hospital. The hospital bill was around $75,000, with my major medical insurance picking up the tab for most of it. A small change in my open enrollment strategy could have cost me a great deal more and set me back financially. 

This is the struggle during open enrollment.  Trying to predict what your medical bills will be is nearly impossible, even with my Magic 8 Ball. I had always been a fairly healthy person, so being admitted and confined to a hospital was not in my gameplan when trying to decide which medical plan I would go with. I was just trying to find a policy that I could afford.

That is why it is so important to have some good supplemental plans at your disposal. Premiums for medical insurance go up each year. Medical inflation outpaces all of our other bills. Having a good disability plan or other coverage in place can help you if you are left with high deductibles or copays.

People will sometimes ask why I think it's so important to have more than life insurance and health insurance. My response is as follows: Health insurance won't pay all of the bills if something serious happens.  Add to that the fact that people generally don't have enough life insurance to cover all the expenses their family will have if they die. Supplemental (or voluntary plans, as they are known) can help you fill in those gaps. 

To this end, I am a huge proponent of supplement policies, not just because I sell them, but because I own them myself. I personally know the value of a Hospital Indemnity policy. I have a cancer plan on my family because I know that the out-of-pocket expenses are extremely high. My disability insurance policy will help cover my bills if I am sick or hurt and can't work. 

I don't want my friends to have to set up a GoFundMe page because they don't have the money to pay their bills. But I do want my friends (and clients) to have a good accident insurance policy so I don't have to contribute to their crowdfunding when they get hurt.

These plans all have a place and none will break my bank account. However, not having an extra policy or two in case of a serious illness or injury could destroy your family's finances. The vast majority of bankruptcies in this country are caused by major medical events. According to CNBC, 137million Americans were struggling with medical debt in 2019. And TD Ameritrade found that medical expenses are the number one reason why people of all ages cash out their 401(k)'s or other retirement savings. 

The majority of these types of plans are sold through the workplace, with employers deducting the premiums from the employees' paychecks. For those of us who are business owners, contract employees and otherwise self-employed, Surf Financial Brokers has comparable plans that can be purchased on an individual basis. And we can take your application right over the phone. Check out our website and book an appointment that works for you to make sure you have this valuable coverage. 

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!

Planning For Your Retirement

According to an EBRI (Employee Benefits Research Institute) survey conducted in 2015, 66% of workers had saved less than $50,000 for their retirement. And 28%  had saved less than $1,000. The numbers slowly got better over the years, mostly because employment increased. As a result employer sponsored retirement savings plans helped, as they were the most effective way for people to save. 

And then the pandemic hit us. For the millions who have lost their jobs, retirement has been put on the back burner as trying to survive financially day-to-day and keeping one's head above water has become the priority.

Again, we are definitely headed into a retirement crisis. After the market drop of 2008, many people cashed out part or all of their retirement plans to pay their bills.  Scared of another market drop, many took their money out of stocks and moved to low-interest yielding investments in an effort to preserve their capital. 

The difference now is that the market is doing well while the rest of the economy is hurting. Companies have learned that they can keep productivity up with less employees, thus increasing profits. Those profits are reflected in the growth of the stock market, but not everyone is enjoying these gains.  

And yes, real estate has done well. Interest rates are still incredibly low, attracting buyers, but who is selling? Perhaps it is those who can no longer afford to be in their home due to a loss of income. The world has become very confusing. And it can still be confusing for those who are trying to plan a retirement. 

There are a few things to remember when planning for retirement.  

First, safety costs money.  If you put your money in an annuity with "guarantees", you'll pay in fees or additional charges.  (And yes, regardless of what your agent sales, there are fees in an indexed annuity). See my previous post on the free dinner at the steak house.

CD's at the bank can cost you in this low interest rate environment by way of inflation eating away at your money.  Your principal can lose value by inflation outpacing your growth. Do a little homework and find out what the current inflation rate is. Currently it's around 1.3%, which is very low, but it can change quickly if oil prices spike or another global crisis, like a war, should happen.

Also, when planning for retirement, a holistic approach is best.  The commercials for "orange money" or a big wood carved number people walk around with is great, but what does it really mean?  Trips, vacations, seeing the grandkids?  

I have mentioned that the three phases of retirement are the "Go go years, the slow go years and the no go years". Everyone plans to be active and have fun once they retire but the hard truth is that you may spend most of your retirement sick or homebound. You should also figure in medical costs associated with aging.  Long term care insurance (or something akin to it) are a must, especially if you have assets you want to pass on.

Estate planning has been replaced with "legacy planning" in some circles.  Legacy planning is a broader term and takes the concept of estate planning one step further, letting you incorporate your morals, beliefs and ideals into your estate plan, and by allowing you to "make a difference" with gifts you leave to charities and loved ones. Retirement planning goes hand in hand with estate planning.

 

But back to our retirement crisis.  Most people clearly don't have enough money socked away.  The government isn't in a position to take care of us.  As life expectancy increases, that doesn't necessarily mean you will live longer and enjoy it. As we say to our clients, just because you may live longer it doesn't mean you'll live better. Quality isn't the same and quantity in this case.  

The bottom line is that is doesn't have to be all gloom and doom. If you are in a position to contribute something each month, even if it's just a few dollars, to your retirement plan, do so. Mix it up as much as possible by diversifying your portfolio. Consider both putting money into your savings while protecting your assets with a long term care policy, which is a great way to play offense and defense at the same time. 

Have questions or comments, put them in the comments section below. And in the meantime, 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!

Are You A Client Or A Patient?

Earlier this week I was chatting online with a sales guru who posed a question on his Facebook page. The question was "Do you have clients or customers?" Only a few people responded so I felt obligated to jump into the fray with "I'd love to call them patients, but the law says I have to call them clients."

The sales guru immediately responded, wanting an explanation for my comment. I told him that as a doctor promotes "wellness" and preventing disease, I like to tell my clients about "financial wellness", but instead of preventing disease, I help people find the potential problems they will face in their financial plans and remove those hurdles. Needless to say, he was impressed.

It all reminded me of the old concept of thinking holistically. When another insurance agent tells me they only sell one product I instantly cringe. "Specializing" in my world is an issue, because if all an agent sells is, say term life insurance, then he or she is not addressing all of the other potential landmines that could be in front of the client. 

Thinking holistically means looking at as many scenarios as possible, prioritizing and facing them head on. 

Would you go to the doctor that only prescribes one thing for all of his/her patients, or do you want the doctor to give you a complete check-up and get to the root of the problem?  Of course, you'd prefer the latter option. So why would you want to deal with a financial advisor who only sells mutual funds or an insurance agent who thinks everyone should "buy term and invest the difference"? 

Can you imagine going to a shoe store that only selsl size 7 shoes? What if you need a size 10 or a size 5? Making your foot fit "one way or another" does you no good. With that logic, if you need a disability policy, the agent who only sells term life is useless.

Our philosophy is that every investment and insurance product has a need somewhere, but not everything is for everyone.  An indexed universal life may be a great fit for someone, where a term life may fit the bill for someone else.  When certain financial "experts" give blanket advice in the media, they are doing a disservice to those who take that advice to heart.

Which is why we want to talk to you. We want to know what your goals are, what is important to you and, of course, what your budget is, so we can find the right insurance product for you. By doing a little fact finding and asking questions, we can find the solutions to solve your insurance needs. That is what we do. 

No two financial gameplans are the same.  People are different.  Their needs are different.  Their loss tolerance levels and time horizons are different.  At Surf Financial Brokers, we take the time to find out what your goals are - personal, professional and financial.  From there, we start a conversation that can change as situations change.  Events like the birth of a child, loss of a job or elder care make a financial plan a moving target.  

Let us help you with a free consultation. We have even made it easier by adding our calendar to the Surf Financial website. You can schedule an appointment that works for you and one of our agents will give you a call, with no pressure whatsoever. We just want to ask questions that will help us understand what your goals are and make "financial wellness" work for you.

 

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 A Short Term Health Insurance Plan?

Everyday people all over the country start new jobs and are told they will have to wait 30, 60 or 90 days before their health insurance kicks in. Many of these people may have had to pay for their health insurance through COBRA, which carried their coverage over from their previous job. COBRA is not cheap and the employee may not be able to afford to keep it. On the other hand, the employee may not have any coverage at all and will have to wait, hoping not to get sick or hurt, for their new benefits to start.

Either way, there has to be a solution. Back in the pre-Obamacare days, we had a temporary solution called Short Term Health Insurance. It was designed specifically for those people who had lost coverage through work and had a gap in coverage until their new benefits could start. Unfortunately, when the new ACA rules became effective, short term plans did not qualify under the rules, which meant that tax penalties from the federal level could be levied. The Obama administration also put shorter limits on how long a temporary plan could cover people. 

In 2018, the Trump administration announced its intention to reinstate the previous time limits for temporary health plans. By making some changes in the mandate and tax penalties, short term plans became popular again. 

With all of this in mind, the question you may ask is if short term health insurance is for you. It may be if you are:

• Not able to apply for the ACA plan during open enrollment or you did not qualify for a special enrollment period
• Waiting for your ACA coverage to start
• Looking for coverage to bridge you to Medicare
• Turning 26 and coming off of your parents' insurance
• Between jobs and waiting for your benefits to start at your new job
• Are healthy and under 65 years old

Note that last bullet point. Unlike ACA plans, there is no coverage for pre-existing conditions. These plans are fully underwritten, so if you already have health problems these plans may not be a good fit for you. Also, they are limited in their coverage. You aren't going to find maternity coverage or a lot of prescription benefits here. Consider these plans to be a Band-Aid to help with major expenses while you are waiting to get on a employer sponsored plan or an ACA plan.

There are some benefits to these plans though. With short term health insurance you can:

• Get covered fast, as soon as the day after application
• Pick your deductible amount from several options
• Pick your length of coverage, from 1 to 12 months, depending on your state
• Drop your coverage with no penalty if permanent coverage becomes available
• Apply for another short term plan when the first one ends if you need to
• Have generally lower premiums

NOTE: Even though these plans are permissible from a "federal" level, state requirements may still vary, so check with your local agent. 

It is true that you may be able to save money with a short term health insurance plan. Just be sure to know what you are buying and that it is a good choice for you. For the right situation, short term health coverage can definitely provide fast, flexible, temporary health insurance coverage that fits your needs. 

If you have questions, drop us a note. We aren't licensed in each state but we hope we can point you in the right direction. 

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!

How Can Disability Insurance Help Me?

Let's assume you get sick or hurt and are unable to work. You may be in the hospital racking up bills, or worse, in a rehab facility. If you are lucky, you may be recuperating in your home, resting comfortably. Some people can actually function and carry on with most of their day-to-day tasks, they just can't perform the duties of their job. And this is where the real problem is.

As I have mentioned in the past, your number one asset is not your home, business or fancy car. Your biggest and best asset is your ability to earn a living. And if you are not able to work due to a disabling illness or accident, you more than likely are not going to be bringing home a paycheck. 

When I speak to groups about disability insurance I ask them the same question every time: If you are out of work, what happens to your bills? "They keep coming!" I hear from the crowd. 

You see, disability insurance (DI) is insurance for your paycheck. Insuring your income is how you can make sure that you can pay the utility bill, the rent or mortgage, and of course, keep food on the table. As a matter of fact, nearly half (46%) of all foreclosures on conventional mortgages are due to a disability. (Only 2% are due to death)

Won't the government take care of us if we can't work? Sure, the Social Security Disability Insurance program is there for you, but only if you have put in 10 years of work ahead of time. And it pays a whopping $722 each month on average. Plus, the criteria is so strict that only about 35% of those who apply actually qualify. There has to be a better option.

Of course that option is a DI plan. You can purchase one through work or on your own and neither is exorbitantly expensive when compared to the benefits offered. 

Generally speaking, you can insure up to 60-70% of your gross income (close to your "take home pay") and benefits are tax-free with a couple of exceptions. If your employer is paying for your premiums or if you have decided to have the premiums deducted on a pre-tax basis, you could be liable for income tax on your benefits. That's not a great scenario but it is still better than having nothing. 

There are certain factors that go into the underwriting of a DI policy. A few are:

• Your income. A policy based on your income will need verification of your income, so the insurance company may ask for recent tax returns at the time of application. Or they may request your tax returns when you file a claim. Either way, they do not want to pay you more when you are out of work than what you were making when you were healthy. 
• Your occupation. Some jobs are more dangerous than others and that will be reflected in the amount you pay for your policy. A roofer has a riskier job than an accountant. And some occupations are difficult to cover at all, like professional athletes. Fortunately, we have carriers who can insure a variety of jobs, and we even have one who will insure a stay-at-home spouse!
• Your health. A person who is unhealthy will have a harder time finding a policy than the one who is 4% body fat and runs five miles a day. And pre-existing conditions are a factor, but in many instances they may just be excluded from coverage. I had a gentleman client in the Charlotte, NC area years ago with an issue stemming from a previous accident that was excluded. He took the coverage anyway because he it would cover anything else that could happen to him.

How much coverage should you apply for if you are on a budget? I recommend the HUG plan. Coverage for housing, utilities and groceries should be the bare minimum and are essential. As I tell my clients, "Just because you are receiving a check doesn't mean you'll be eating at Outback every night."

If you would like more information on DI, drop us a comment or book a time to speak with us from our website. In the meantime, 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!

Thoughts On Supplemental Insurance

Part of my work is helping people with supplemental insurance benefits. A large percentage of this work is done in a worksite setting, which means that I help people at their place of work and the premiums are deducted from their paychecks. There are several carriers out there offering insurance products like disability, cancer, accident and critical illness plans, along with other insurance products. 

When I speak to other insurance agents who sell these products there is always a debate about which company has the best products. "Our cancer plan pays more than their cancer plan" or something along those lines is usually the way the conversation goes. Some of these agents work exclusively with one carrier so they can get a bit tribal when it comes to who has the superior products.

The truth is that the client really doesn't seem to get to concerned over these details. They basically just want to know if they have a disability plan if they get sick or hurt and can't work, or if the Hospital Indemnity plan will work if they are confined to a hospital. 

But many people do not have access to these plans because they are not part of a group that offers worksite benefits. With that in mind we have looked for some of the best carriers that take those of us who are self-employed or business owners into consideration. If you are a contract employee or just work from home, you can purchase a great cancer plan, disability insurance or other plan. 

I really appreciate hearing people tell me how these supplemental insurance products helped out when the client was in a time of need. One story involved a young boy, around 10 years old, who had cancer and was receiving treatments at a hospital about two hours away from his home. His father was having to take time off from work to travel back and forth and it was severely impacting his paycheck in a negative way. They were literally days away from having the power cut off at their home. 

The father's employer, who for some reason had no clue what was situation was, quickly realized that there was a cancer plan in place that the covered the child as well. They contacted the agent who sent in paperwork on a Thursday afternoon. By Monday, the family received a check for over $15,000. As the boy went on to continue treatments, the family continued to receive benefits from their policy. 

The best part of all this was that the boy's cancer went into remission and he is healthy. And so are the family's finances.   

One of my favorite stories involved a special education teacher at a middle school in North Carolina. She had taken some kids out to the schoolyard for some exercise and one child, who apparently was just a big as her, decided to make a dash for the exit and ran toward the adjoining property off of the campus grounds. This teacher, who I would guess was in her mid to late 50's, tried to get in front of the student, blocking his way. He ran her over like a football player would run into a linebacker, knocking her to the ground and breaking her arm. 

It was all the talk that afternoon among the rest of the staff. I mentioned that she had an accident plan that covered her, even while at work, and that she would likely receive a nice payout from the insurance carrier. The other teachers began asking for an accident plan for themselves. They realized that they could also be hurt at work and began to see the value of such a policy. 

If you are interested in our supplemental plans, please check out our products page on our website. 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!

6 Questions You Should Ask About Life Insurance Through Work

Quite often I will be discussing life insurance with someone and they will tell me that they don't need any because they have coverage through work. Given that everyone has a different situation, I ask some questions to find out how much they have and if it's enough to cover their needs.

The discussion usually turns to "Do I need to get life insurance through work?" or "Is it any good?" My general answer is that I don't know unless I take a look at it. DISCLOSURE: The information below is not specific to any industry or employer. There are too many plans out there to discuss each one in detail.

Here are some questions to ask your Human Resources person about your life insurance through work.

1. What's the face amount? It can vary,with the lower end being as small as $1000 to upwards of $20,000. Or the employer may just offer the equivalent of one year's salary.
2. Is it "basic" or "supplemental"? Most of the time, a "basic" policy is no charge or just very inexpensive. 
3. How much am I paying for it? If your policy is "supplemental", you may be paying more. One thing to be aware of is when the sales rep quotes you a price based on the frequency of your paycheck. $8 a week sounds good until you do the math and realize you are paying around $35 each month.  
4. Is my policy "guaranteed issue"? This means that there are no health questions. Most basic policies fall into this category.
5. Is my policy "simplified issue"? This means that your policy will ask a few health questions. These may be regarded as "knockout questions", which means if you answer "yes" to one, you will be disqualified from getting the coverage. 
6. Is it portable? What you are trying to find out is if you can take this with you if you leave your employer. And if you can, ask if the rate will go up.

Years ago I was selling "supplemental" life insurance on the coast of South Carolina. Our polices were simplified issue and I felt that they were a bit pricey. That higher price is reflected in the minimal amount of underwriting done, giving the company a higher risk. 

A young couple in Florence, SC asked me about life insurance on the husband. He was an exterminator for a local "bug company" and was being offered supplemental life insurance through his employer. The amount he wanted to purchase was going to cost him $75 each month, where I had a comparable plan for around $40. The difference in his head was that the premiums from my policy were going to be drafted from his bank account each month while the other was going to be deducted from his paycheck. He was willing to pay nearly double for the convenience of not having to worry about the money being in his account. His wife and I argued with him that he was wasting money. About a year later they split up, and she said it was because he was a "hard headed man". 

Most of the time I suggest that if you can get some "basic" coverage through work, go for it. It's cheap and your family can more than likely use it if you die. With that being said, I would treat it as a secondary policy and have a primary policy outside of work. As mentioned earlier, your policy through work may or may not be portable and if you're in poor health when you leave your job, you may not qualify for another plan.

If you have questions, feel free to leave a comment or drop by our website and book an appointment for a free consultation over the phone. And as always, 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 Disability Insurance? Pt 2

On my previous post we discussed some general information about disability insurance (DI). I mentioned that if you are sick or hurt and unable to work nothing happens to your bills. They just keep coming. This is how we need to regard DI. Yes, it's to help you if you are disabled, but more importantly, it's an insurance policy for your paycheck.

Consider for a moment your annual income. Now imagine that you have a magical money machine in your home and once a year when you turn it on it prints the same amount of money as your income. The question is this: Would you insure that machine? Of course you would!

That machine is YOU! You are the one making the money and you need to insure your income. As I wrote in the last post, your greatest asset is your ability to earn a living. 

There is another part of this that rarely gets mentioned and that is that no one wants to be a burden on their family. Short term or long term, having to depend on others for your care can make a bad situation worse. Not only can you not work to provide for your family, but you may have amassed some medical bills on top of the bills you already have. 

Then there is the issue of the loss of independence. Not yours, but your family's. Someone may have to take care of you while you are healing, assuming that you will get better. Non-professional caregivers, such as your spouse or adult children will now be charged with preparing your meals, bathing you and taking you to physical therapy. Even though they love you and will feel obligated, eventually a bit of resentment will set in. 

All of the above nightmare scenarios can be avoided with the purchase of a DI policy. For many people the cost is reasonable and is worth the peace of mind that it provides. I have placed polices on school teachers, attorneys, realtors, cosmetologists and many other professions. A few years back we had an unusual case in which the client was a mechanic on a tug boat. After a few days of waiting the underwriter, who apparently spent many hours trying to find a suitable occupation class, finally gave us a verdict. The client gladly accepted the offer. 

We have one insurance carrier who will take on occupations that other companies will refuse. Farmers are especially difficult to insure, but this company will. But my favorite occupation they insure isn't an "occupation" in the sense of the word.

Stay-at-home spouses typically have no income, but if something were to happen to them, there would be a financial burden on the family. The kids may have to start going to daycare or have someone come to the home to "babysit". Either way, that can cost a lot of money. Our carrier will insure a stay-at-home spouse if they get sick or hurt, as long as the working spouse has a policy with the company. 

One of the features of a DI policy is the "elimination period". Think of this as your deductible, but instead of dollars it's measured in time. A typical group short term disability policy may offer a 0/7 elimination period. This means that the policy benefits will begin on the first day after an accident and the eighth day after a sickness. If you want to save money on your premium, you can purchase a policy with a longer elimination period, like 7/7 or 7/14. 

When we talk to folks who are self-employed or business owners about our individual policies, they are usually offered a 30, 60, or 90 day elimination period. Even though it may sound scary to have to "self-insure" for a longer amount of time, most of these people have some money stashed away in savings just for this reason. 

Take a minute and try out our DI quote tool in the upper right corner of this blog. It will ask you a few questions and give you a pretty good estimate of how much coverage you can get on your budget. 

A large majority of DI claims are for illnesses, and with the pandemic upon us now is a great time to look into getting a DI policy for yourself. Stay healthy and please subscribe. 

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.

Do I Need Disability Insurance? Pt 1

In the world of life and health insurance sales, one product is considered to "undersold" more than others, and that product is disability insurance (DI). Sometimes known as "disability income" coverage, DI is usually sold by agents who work in the worksite or payroll deduction market, such as Aflac, Colonial Life and others who sell benefits in the workplace. These companies typically have a participation minimum, such as 3 or 5 employees having to buy the product, as well as caps as to how much they will pay out.

Then there are agents like myself who work with individual clients, mostly business owners, contract employees or otherwise self-employed people, who don't have access to the previously mentioned companies. Also, many of these people actually have an income that is above average and need higher benefit amounts.

Whether you have access to DI through an employer or not, the question remains: Do you need it? To answer that, we need to ask one more question: Do others depend on your income? Is your income needed to pay the bills, pay off debt, pay for utilities or groceries? Is your family dependent on your income to provide for educational expenses or transportation? 

When I talk to prospective clients I always ask what their number one asset is. They usually say something along the lines of their home, their business or even their car. (One lady told me it was her sparkling personality.) None of those answers was correct. Their number one asset was their ability to earn a living. Without that, they could not pay for the house, or the car or fund their business. 

Our income provides us with the ability to eat, enjoy TV and generally live indoors. I don't know about you, but I enjoy my air conditioning and hot water. 

The premise of DI is clear, but getting a policy can be a little more difficult than life insurance. Both are underwritten on the basis of your age and health, but DI is also underwritten on the basis of the type of work you do and your income. The safer your job, the lower your premium. A real estate agent will generally have a lower rate than a welder. Certain professions are very difficult if not impossible to insure, such as roofers. 

On a sidenote, I once had a client apply for a policy who liked to fly small airplanes. The insurance carrier actually had me complete an additional form for this avocation as I was a bit concerned. After not hearing back for a few days I called the underwriter to get a decision on whether or not the policy would be issued. The nice lady said, "If we were selling life insurance to this guy, I'd be concerned, but with the kind of plane he's flying, I'm not too worried about it." I asked if she thought it was a safe plane and she said, "No, but if he crashes he won't survive to be disabled." 

Sometimes income is verified when the application is taken but I have had occasions when it was verified during a claim. Either way, the insurance carrier will usually ask for a copy of tax returns. This can vary depending on the insurance company. 

In the next post we will look at how much coverage you should look into applying for and a few other nuances of DI. In the meantime, run a quote for yourself. In the upper right corner of this blog is a calculator that will give you a ballpark estimate of what a policy may cost for you. All rates are subject to underwriting, but at least you'll have an idea. Stay healthy and I hope you subscribe and share with your friends. 

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.

Covid-19 and Disability Insurance

As the pandemic continues to work its way across the country, there is a lot of uncertainty. But one thing is for sure and that is that people who have disability insurance (DI) in place, whether through their employer or bought as an individual plan, are grateful to have it right now. And I don't think any of our clients will be cancelling their coverage any time soon.

More than ever Americans are learning how valuable their DI plan is. In a recent conversation with a local business owner, she asked me if I would prefer short or long term disability during a time like this. Not trying to sound trite, I said it would be best to have both. This is because the Coronavirus can put you in the hospital for a few weeks, and short term DI is good for that, but other ailments may not be getting treated in the meantime. Elective surgeries can be postponed, leaving people out of work for longer amounts of time. 

One thing to be aware of is that if your employer is offering to pay for your DI coverage, that benefit can be subject to income tax. And if that benefit is around 60-65% of your income (which is close to your take home pay), expect to get another haircut from Uncle Sam. In the same vein, if your company offers a Section 125 plan, in which you can have the premiums deducted "pre-tax", again you may be subject to taxes. 

On the other side of things are the people who have to get their own individual policies. This makes up the vast majority of my clients, who are business owners, self-employed realtors or other contract employees. Generally speaking, the people who purchase their own DI are cognizant of why they need this protection. If they can't work, they can't pay their bills. For a affordable premium, these folk can shift the onus to an insurance company. 

Since these entrepreneurs are in different fields of work, from barbers to realtors to attorneys, they all have differing risk factors with their jobs. But the one thing they all have in common is that they have to work with other people who may or may not be contagious. 

As I watch our local news, I see that restaurants are closing temporarily as employees begin to test positive. I applaud them for being proactive and taking action. But if that is your co-worker, how confident or nervous does it make you knowing that you could be out of work due to the virus?

In the upper right of this page you can run your own quote (it's an estimate subject to underwriting) for disability insurance. It only takes a few minutes so check it out. You may be surprised as to how affordable it really is. 

If you have any questions about our DI plans, or any other plans we offer, feel free to drop us a confidential message from our website. We will respond promptly. And as always, please stay healthy. 

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

Real Estate Agents and Disability Insurance

In my area there are hundreds, if not thousands, of real estate agents. A lot of these people have become clients of mine over the years as I've built networking relationships with them and their affiliated industries. As a matter of fact, the local realtors have their own networking group that rivals any of the local chambers of commerce. 

Realtors are there own kind of entrepreneurs. There are times when the market is up, like pre-2008 when home loans were available to too many people who couldn't afford them. Let's face it, everyone would like to own their own home, but not everyone has the means to do so. And the realtors sold a lot of homes. Then the crash came and their businesses dried up. A few hung in there but times were lean.

The market rebounded until recently with the advent of the Covid-19 virus slowing things down. Nothing like 2008 (so far) agents can still show homes virtually, so it's more like a speed bump. I personally think the market will come back and the agents can get back to showing property in person. 

With the pandemic as the current backdrop, I've had more interest in Disability Insurance (DI) recently from real estate professionals. Seeing how tight their bills can get while having a drop in income has been a sort of wake-up call, and with the threat of a virus possibly taking them out of work for a few weeks, agents are starting to look into DI. 

I was having a conversation recently with one of my agents, who works in Charleston, SC, on the topic of DI. She also has been getting interest from realtors and others in the sales industry. After speaking with her I asked called some of our other agents on the east coast and they also had an increase in calls. One of the great things about Surf Financial is that we have a great network of agents who are eager to compare notes and study these kinds of trends.

If you're a realtor and interested in what a policy might cost for you, click on the "Get a Quote" link in the upper right hand corner of this post. For job classification, make sure to enter "Class 5" from the drop down box. And if you're interested in a brochure on why real estate professionals need DI, click here. 

As always, please stay healthy and let us know if you have questions. We also appreciate your referrals to this blog and our website. 

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

Should You Buy From a Captive Agent or an Independent Agent? 2023

Did you know that there are different kinds of life and health agents? The differences lie in the type of company your agent represents and their pay structures, but these factors end up resulting in the type of insurance you buy, whether it's the best product for your needs or not.

Imagine a shoe store that only sells even number sizes. Unfortunately, you wear a size 9. The salesperson, who may or may not be honest, will try to tell you that they have something "close enough" for what you need. You try on the shoes and they are either too big or too small. The salesperson is limited in what he or she can sell, so they are going to try to get you to purchase what they have on hand.

In the insurance world, we have captive and independent agents. Captive agents typically are contracted to work with one company (unless that company has an agreement with another carrier) and are not allowed to shop around with other carriers. Typically, these are companies that carry your home and auto, but not always.

Why would an agent want to be captive? One reason is that you only need to learn one set of products, so you don't get spread too thin. Also, the company will normally provide supplies, office space and other perks, like training meetings and coaching. Sometimes they will even offer a salary or a draw for the first few months. This is great for a new agent trying to get their feet wet in the business. The downside is that the commissions are lower. A lot lower.

On the other hand, an independent agent works on their own, paying for their own overhead and making larger commissions. But the offerings to the client are much more expansive, as these agents can shop around literally hundreds of companies to find the "shoe" that fits the clients precise needs.

I knew a couple of agents years ago that ran a captive office. They loved to talk trash about whole life insurance, mainly because their company didn't carry it. I'm not a huge fan of whole life, but there are times when it fits the bill, so I make sure I have a couple of good carriers at my disposal when I need it. These two didn't have that luxury, as they only sold term and universal life. 

Don't get me wrong, some of my favorite people do well as captive agents. And when I show them what I can offer my clients they usually look surprised. Few of them offer indexed universal life, so when I explain to them how it works I get mixed reactions, from slight envy ("I wish we offered that") to outrage ("This is obviously a horrible product or we would sell it!").

An older agent once summed it up as follows. "Captive agents work for a company that can fire them. Independent agents work for the client and can fire the company if they don't treat the client well."

As you can see, we at Surf Financial Brokers are independent agents. We don't have a sales manager whispering in our ears about hitting sales quotas or any obligation to any of our carriers. Simply put,we enjoy having he resources to get the right size shoe on the foot in a comfortable and affordable way.

Stay healthy and let us know if you need anything.

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

How Your Disability Insurance Can Help You Now Part 2

When I talk to groups about various coverages we offer, I mention the Holy Trinity of insurance, which is their major medical, their life insurance and their disability (DI) coverage. That's how important I think it is. In the previous post we went over the basic premise of disability income insurance  and why you may want to enroll in it. Let's take a look at a few other aspects of this part of your financial game plan.

One of the important things to consider when purchasing DI is the elimination period, which is the number of days before the benefits actually begin. For instance, let's assume that you get sick on January 1, but your elimination period is 7 days. Your benefits won't be "triggered" until January 8. Think of it as a deductible, but in time instead of dollars. And just like any other deductible, the longer the deductible, the lower the premium.

So the question to ask yourself is how long you can "self-insure" before the benefits kick in. If you have an ample number of sick days at your disposal then you can use those first and can stretch out that elimination period, thus lowering the cost of the insurance to you.

And some policies will have different elimination periods for sickness and injuries. Many group policies will have a "0,7" which means it will begin paying on the first day after an accident, but on the 8th day after a sickness. Be aware that if you have group coverage, maternity may be covered, but as a sickness (even though it may have been an "accident" lol). Individual policies will have longer elimination periods, like 30 or 60 days.

As I mentioned previously, your income will be looked at in the underwriting process. Some companies will want to see tax returns when you apply, but there are also carriers who look at this at the time of the claim. And if you are self-employed your income can vary from year to year. This was a huge concern for my realtor friends, so I picked up the phone and spoke to a claims specialist for one of the companies I represent. Her response was that incomes that weren't steady were already figured in to the equation and that "we just want to make sure they had a job when they became disabled". Makes sense.

Remember that your DI plan will generally cover a maximum of 60-70% of your income. To deter against insurance fraud (and we would never do that), you are allowed only one policy at a time. If you do have more than one, the companies will subrogate, or coordinate with each other to pay your claim. In other words, if you're paying more than one premium you will still be getting the same amount of benefits. As my mentor told me when I first got into the insurance business, "We don't want people making more when they're out of work than when they were working."

And yes, if you have a policy and contract the Coronavirus, you should expect to receive benefits for being out of work. However, be aware that just like any other pre-existing condition, if you've got the virus and apply after, you may be declined.

If you're interested in pricing for a policy, click on the "Get a quote here" box in the upper right side of this page. There's no obligation to purchase and you can get a decent ballpark on rates.

And please, stay healthy and let us know if you have any questions.

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