5 Ways To Help Your Family From Beyond The Grave 2023

As an insurance agent I have come across a wide variety of opinions when it comes to people discussing their own deaths. I am constantly amazed at how people will open up with me so quickly. Maybe they trust an insurance agent more than their own family members.

Some of these folks believe they are heading into the afterlife, one way or another, while more than you would expect seem to feel that there is nothing after you die. But with all of these differing opinions, most do agree that their loved ones will still be around when they are gone and may have to pay some expensive bills as a result of their death.  

And here is the rub. If we agree that there will be some costs involved when we go to our great reward, shouldn't we try to minimize those costs ahead of time? Wouldn't it be in the best interest of our surviving family members? It seems like common sense to say "yes". Especially when we know that no one lives forever.

So what can you do to make sure your family doesn't go broke paying their last respects to you? Here are a few ideas of simple tasks that don't need to be put off any longer.

1. Have a will. Your will directs the courts to help settle your estate per your wishes. It's very important to keep it updated every few years as your situation changes. And most importantly, make sure your family members know where to find it. Is your will in a safe, or a file at your attorney's office? And never leave it in a safe deposit box unless other family members have a key. 
2. Have a living will. If you were seriously ill, would you want to be on life support or would you rather have the medical staff "pull the plug"? Your directives can keep your family from keeping you on life support when you would rather pass away.
3. Have a life insurance policy. As an attorney friend of mine always says, "A life insurance policy trumps a will." You don't have to wait for someone's estate to be settled because a life insurance policy is a binding contract between you and your insurance company. Remember that when someone dies, the funeral home, lawyer and others will have their hand out waiting to be paid. Your life insurance agent will be the one bringing you a check to pay those bills. 
4. Pre-plan your funeral. Instead of your kids picking out a Cadillac coffin, you can decide for yourself how modest you want your funeral to be. 
5. Pre-pay your funeral. My own father did pre-plan but didn't pre-pay. From the time he had planned his funeral to the time he actually passed away, inflation had done some damage. The funeral director shook his head and said, "I'll do the best I can on these prices", and I could tell it wasn't the first time he had run into this situation. 

This list may seem daunting, but it doesn't have to be. The first two items and the last two items can be taken care of at the same time. Having a plan and letting your family know what it is can save them substantial money and they will know that, even in death, you are looking out for their best interest.  

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 Is The Mix And Match Life Insurance Strategy? 2023

Can you imagine having one wrench in your toolbox that is supposed to take care of all sizes of nuts and bolts, but you know deep down that that wrench can't do all that the jobs it is advertised to do. It works fine on some things, but not all things. Your life insurance is like that as well.

When someone tells me that they only buy term life insurance or they only buy whole life I always asks why. The most common answer is something like, "That's what my mother always had." I want to respond that my mother drove an AMC Gremlin, but you don't see me with one. 

The other answer I get is that they heard a financial "guru" on television who is an "expert" in all things pertaining to personal finance. This guru suggested they "buy term and invest the difference". I won't go into that argument but I did cover it in the previous post.

This is why it is important to know about the different types of insurance and the needs they fill. Having only one type of insurance at a time, or for your entire lifetime, can be inefficient and expensive.

First and foremost, life insurance is at it's cheapest when you are young and healthy. Leveraging your age and good health can work to your advantage, especially when it comes to permanent life insurance coverage. In a perfect world, one could afford to buy all the life insurance they need when they are in their 20's. But our lives are not always ideal.

Some people will buy term coverage during their working years with the intent of buying permanent insurance, like whole life or universal life, when they "have the money" or retire. Others will try to buy an expensive plan when they are young, only to stop paying for it when they need the money for something else. 

If you know what features each kind of life insurance work best, you can develop a better strategy for securing your family's financial future while keeping it in your budget. A great way to do this is to "mix and match" a couple of types of insurance. 

For instance, let's say that you have met with your agent have agreed that you need $500,000 of life insurance coverage. That would be an expensive policy if it was all in one whole life program. However, you also know that you may need some permanent coverage down the road when you are older.

At this point you could, assuming you are fairly young and in good health, purchase a $450,000 term policy, either 20 or 30 years, for a affordable rate. Then you could cover the difference of $50,000 with a permanent policy, like an Indexed Universal Life plan. That would make sense to most people and fit in their budget.

An important part of all of this is having an independent agent who can offer a wide variety of plans. Some agents only want to sell term life while others really push whole life to their clients. It's like going to a car lot that only offers sedans, but you need a truck. Why bother? 

Make sure that your agent has all the insurance products you need. If you feel as if he or she is pressuring you into one plan instead of giving you several options, look for someone else to help you. 

If you have any questions about this, let us know. 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!