Is There A Covid_19 Insurance Package? (Pt 1)

The Covid_19 has now struck at the highest levels of government and has illustrated that no one is immune to virus. For many of us, the pandemic is something that is a concern, especially as businesses and schools begin to reopen.  Whatever virus "fatigue" that was there has quickly evaporated. 

As I was enjoying a meal with a couple of close friends this weekend, the topic of the pandemic reared its ugly head. One of my buddies asked if there was any particular insurance product that would help people who were concerned about Corona.

Actually, there are several products that come to mind during these times. Each insurance product has a need and can help those who could be worried about the virus ravishing their family's financial situation. To be clear, these products are subject to underwriting and may not be available in all states. Let's look at a few.

First of all, there is life insurance.  After 9/11, the American people had a wake-up call. They realized that they could die at any given minute without warning. For about 6 months after that tragic event, life insurance sales spiked. Sales of life insurance have risen again with fears of the virus working its way through families. 

If the main breadwinner of the family should die unexpectedly, the rest of the family could be in a world of financial pain if there is no life insurance in place. Making sure that your spouse and children can maintain their home, pay off any outstanding debt and insure that your kids can afford a good education can be accomplished with an affordable life insurance policy. 

What happens if, God forbid, you should lose a child due to the virus. It's a terrible thing to consider. Unfortunately I have attended many a fish fry fundraiser to help pay off the cost of a child's funeral. People are hesitant to purchase insurance on child. As one parent told me, "I don't want to profit off of my child's death." No one says you have to profit at all. But there will be expenses and if there is any money left over from the insurance policy, the parents can set up a scholarship fund or contribute to a charity "in memory" of their child. 

If you are confused as to whether you need term life insurance or a permanent plan like whole life or universal, we can have a conversation to help you find out what your needs are, as well as your budget. 

The second type of insurance I would consider is Disability Income Insurance (DI). A good DI plan should be in place to replace the income of the person who is sick or hurt and not able to work. As we know, the survival rate is high among those who contract the virus, but it can still keep you from working. As stated before, your most valuable asset is not your home or car or investments, but your ability to earn a living. And when someone is out of work due to an injury or illness the bills don't stop coming. 

Many people don't seem to realize that they are one medical emergency away from dire financial straits. Did you know that over 80% of all disability claims are due to illness? And that 62% of all bankruptcies are due to medical costs? Having a DI policy in place can keep a stressful situation, like being seriously ill, from becoming much worse when the bills start to pile up.

These are just a couple of the products that can help you if you are concerned about the virus, but there are more we will cover in the next post. In the meantime, please continue to social distance and 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!

Great Cycle Challenge - Cancer Bike Ride

As September was Life Insurance Awareness Month, we failed to mention one of the other interesting items that took place involving a couple of our associates. 

The Great Cycle Challenge began in 2015 and has quickly become one of the biggest cycling events in the country. People of all ages, abilities and from every state across the country set themselves a personal riding goal and challenge themselves to pedal to fight kids' cancer. For 2020 the challenge took place in September. 

In the previous 5 years, the riders from all 50 states across the country had ridden a total of 18,831,130 miles and raised a total of $24,615,507! That money goes to support research to develop better treatments and find a cure for childhood cancer.

Two of our very good friends participated this year and both did fantastic. Donna Cash, a retired school administrator in North Carolina, set a goal of 300 miles and to raise $500. Donna, who is a colleague of ours and an all-around awesome person, rode 303 miles and shattered her goal with $668. Good job!

Jeanne Doran, one of our Surf Financial partners in crime, also rode in the event. Going above and beyond the call of duty, Jeanne rode a total of 455 miles and raised $2615. Congratulations to both of these amazing people and a hearty thanks for helping a good cause.

I spoke to Jeanne last week and let her know what a great job she did. As cancer has touched all of in some form or fashion, we discussed what a great way the bike ride was for getting the message out about kids' cancer, as well as other cancers too. 

That's when Jeanne and I realized that we offer cancer insurance plans and those plans should be part of our messaging also. 

I've related the story in the past of the gentleman whose son was receiving cancer treatments in a town nearly two hours away. Since the father was having to take time from work to travel with his son, their financial situation was dire. At the last minute the father's employer remembered that there was a cancer plan in place and it literally saved the day. 

Most people purchase their cancer plans through work, which is fine and convenient. However, if you are self-employed, a small business owner or, like us, an independent contract employee, you may not be eligible for a group cancer plan. Not to worry, because we offer an excellent plan that is available on an individual basis, and is still quite affordable. 

Through the years we have heard stories from clients who will tell us how much their cancer plan came in handy when they were receiving treatments. Yes, their medical coverage picked up the bulk of the hospital and doctors' bills, but there were still a lot of out-of-pocket costs associated with cancer. Co-pays and coinsurance are just the beginning. Travel and lodging expenses if treatments are out of town can add up, and not everyone is eligible for the Ronald McDonald House. Of course, the loss of income can be detrimental to the financial stability of the patient's family. 

If you would like some information about our cancer plan, check out this video. And if you would just like to contact us for rates or other information, feel free to schedule a phone appointment. In the meantime, stay safe and 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!

Life Is For Living (Great Video)

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

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

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

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

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

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

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

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

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

*All rates are subject to underwriting.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Expanding Our Social Media Footprint

With the pandemic upon us businesses have had to find new ways to market themselves. Our agency, Surf Financial Brokers, is no different. Social media and a web presence are one of the many ways we are trying to get the word out about the products we sell and the services we provide. 

Actually, we were already changing the way we were marketing pre-Covid. The traditional way of selling insurance, by asking for referrals and mingling at networking events, was still working for us, but only in a limited capacity. And to be honest, agents can get burnt out quickly that way. My agents and I had some conversations as to what changes we could make to expand our messaging. We also asked for feedback from our clients.  

Social media can be a rabbit hole for a growing insurance agency like ours. It can be very easy to get caught up in all of the differing platforms out there, and the last thing we wanted is to take away time and resources from our clients. "Sorry, I'm not able to help you with a death claim because I'm busy posting silly memes." Absolutely not! We needed a plan.

Facebook, which has become a juggernaut of social media, took on a larger role. The logic behind this was that our agents were already active on the platform. There wasn't much of a learning curve because we already had a good amount of clients there already. 

LinkedIn was a no-brainer as well. As a great platform for networking and connecting with other professionals, it made sense to take some time to learn how to maximize it to our advantage. I've always managed to find good prospects on LinkedIn, as well as new sources of information. 

Realistically, our agents agreed that Twitter was fine to post short messages to, but the expectations were low. Our thoughts were pretty accurate, as nothing much has happened from our Twitter feed, but we really haven't put much effort into it either. 

You see, aside from this blog, we have managed to keep our time marketing on social media to under an hour each day, and typically it is more like 30 minutes. And that time is spent during early mornings or late evenings when clients don't expect us to be available.

 

Surf Financial Brokers unknowingly was preparing for social distancing before it was necessary. We were adding features like Calendly to our website, and transitioning to "phone appointments" months ahead of everyone else. When the Coronavirus became an issue, we already had most of the tools in place and just needed to step on the gas. 

With the addition of a new products like Short Term Home Health Care and our new accident insurance plan, we have also tried to make it easier for our clients by using web-based applications. This avoids us having to physically come into your home or work and filling out forms. Just as your pizza is delivered in a "contactless" manner, so can the way you protect your family's financial security. 

In recent days we have managed to dip our toe into another pool of social media, Instagram. Through discussions with some of our clients, we found out that not everyone reads blogs, even the interesting blogs like this one. A few clients said that they enjoyed reading short articles on life insurance, long term care plans and disability insurance, but they also liked the occasional short video too. The plan is to post short (less than a minute) videos on Instagram to cover various topics. 

If you are already following Surf Financial Brokers on Facebook, LinkedIn, Twitter or another platform, we thank you for your support. We hope you follow us on Instagram @SurfFinancialBrokers for some different content and information. 

We look forward to helping you and answering your questions. And as always, 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!

Stay Healthy and You Can Save Money

This weekend I went to a grocery store that is a part of a large chain based in the southeast. They have a pharmacy that offers flu shots, which I get each year to ward off the winter's ailments. Even though many of my friends have said that it the vaccination doesn't work for them, for me it is a lifesaver. 

In the past I would get sick with a head cold at least three times each winter, with an additional case of the flu thrown in for good measure. However, since I began getting the flu shot about five years ago, I might have one good cold each year. This let's me work more, stay more active and overall feel better. As they say, an ounce of prevention...

One of the nice perks about getting my flu shot at this store is that they give me a gift card for $10 after my injection, which I promptly redeem for a lovely cheesecake. It has become a bit of a joke in our home when I walk in with the delicious dessert in my hand and a band-aid on my arm. "Ah, Chris got his flu shot again!" is the refrain as the family looks for forks and plates.

But the flu shot is a small part of a bigger picture. I'm not the healthiest person in the world, but I do the best I can by trying to eat right, exercise (mostly yard work, which works up a good sweat) and stay off of the carbonated sodas. All of this is done with intention from a lesson learned years ago. 

As an insurance agent, I also understand the value of the product I sell and know the price is better for people who are healthy. Realizing that I needed enough coverage to pay off my mortgage and some debt if I were to die unexpectedly, I applied for a life insurance policy. I also realized that I would need a paramed exam involving blood, urine and testing for height and weight. 

This was about the time that the low-carbohydrate diets were getting popular so I replaced my usual potato chips with pork rinds, thinking I had beaten the system. Boy was I wrong!

After the nurse did her job I found out that instead of my monthly premium going down, it went up by roughly $10 a month. Apparently my cholesterol was very high, and those stupid pork rinds were more than likely the culprit. 

I kept that policy for a year, then I reapplied with another company, this time eating a lot of salads. Why hadn't I thought of that the first time? I dropped some much needed pounds, got my insurance premium back to a reasonable price and I had a newfound respect for salads, which I still enjoy to this day.  

Odds are that you are not going to get much healthier than you are right now. Personally speaking, I have had my share of health problems in the last five years. Hypertension, stomach problems and borderline diabetes suddenly and unexpectedly became issues for me. I'm on medications to keep my numbers under control, but I could just as easily have had a heart attack, stroke or worse. 

What are you waiting for? Protecting your family's future should be a priority for you. Stay as healthy as you possibly can and get that coverage as soon as possible. 

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 Cancer, Heart Attack and Stroke Plan?

We all know someone who has had cancer, heart attack or stroke. And we all are aware that with any of these significant and serious health issues there can be a lot of bills that your major medical insurance  will not pay. Deductibles and other out-of-pocket expenses will deplete your savings and can devastate your family financially.

Medical issues are one of the main reasons for bankruptcies in this country. Not only will cancer or a heart attack run up medical bills, but it also can keep you from work. As I have stated on many occasions, your number one asset isn't your home, car or investments, but your ability to earn a living. With a major loss of income comes more stress on you and your family. 

I shared the story in a recent post of a single father who had to take time off from work when his son was receiving cancer treatments. They were literally days away from having the power cut off from their home when they remembered they had a cancer plan, which helped out tremendously. 

Take a look at this short video and see how it works. 

Many companies offer good cancer plans, and many companies offer good plans that help for heart attacks and strokes, but not many let you combine them both. With our plan, you can choose either a plan for cancer or heart and stroke, or you can have both at once. That's flexibility that helps you.

And these plans don't pay the doctor or the hospital, but instead pay you directly. You can choose a lump sum benefit up to $75,000 that you can use at your discretion, whether to pay for your out-of-pocket bills or just your regular monthly bills due to your loss of income. 

These plans also come with a wide variety of optional riders as well. The cancer recurrence rider and building benefit riders are a valuable tool in making sure that your plan keeps up to date with the unknown down the road. You can even add a cancer rider for your children.

All of these features are available for heart attacks and strokes too. You can add these riders if you are concerned about recurring heart attacks and strokes, as well as coverage for your kids. 

But these plans also have some additional features that you probably wouldn't expect, like additional benefits for intensive care, and critical accidents. There is even an optional rider for dental and vision benefits. That's a lot for one affordable plan!

But what if you never use the plan after paying into for years? There's even an option for a return of premium rider which will refund your premiums, minus any claims paid. 

And we make it very easy for you to apply for this great coverage. You can pick out a time from our calendar to have us call you on the telephone. No need to worry about a salesperson coming to your home.  The application process is easy and with just a few questions. 

Don't become a statistic by letting a major illness ruin your family's finances. By making sure you have the right kind of coverage for serious health events like cancer, heart attacks and stroke, you will have the peace of mind knowing that your loved ones can feel secure while you (or another family member) is receiving treatments. And that is what insurance is all about. 

Not all plans are available in all states. We can let you know what is available in your area.

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!

Why I Really Need Life Insurance (Powerful Video)

If you are like most people you are inundated with information all day long. Commercials on television, radio and social media are everywhere for every kind of product. From the ubiquitous car insurance commercials with lizards to mobile phone companies, it seems that every company out there is doing their best to drown the others out.

There was an insurance company commercial in the late 1990's where the man was walking down the beach with a little boy. It was very sappy and ended with the man saying, "Did I mention he has his mother's eyes?" Not many people remember it, which is why that company changed gears altogether and decided to take their advertising campaign in a whole new direction, resulting in the Aflac duck. 

The problem with life insurance advertising is that it really isn't very good at explaining why people need it. A giant whale jumping out of the ocean doesn't motivate people to protect their family any more than a business card.  

In my personal experience I have noticed that people will make that insurance purchase when they see something happen to other people they know. Personal stories from their friends and family will move the needle. 

An example of this is long term care insurance. It seems that no one wants it until they have a sudden onset of health issues, like a stroke or cancer, or they see Grandma go into the nursing home and realize how much it costs. I have had many calls over the years because of the latter situation, by the way.

And it is the same with life insurance. People will call me after they find learn that someone they knew has passed away without any coverage and see the devastating effects it has on the family. GoFundMe pages and potluck dinners will only go so far. Having a young widow ask me "Will I be okay?" and knowing that her spouse wouldn't buy a policy is a punch in the gut for me. I feel like I didn't do my job somehow, even though I tried and tried. 

If you don't think you need life insurance, please watch the video below. 

As you can see, we don't buy life insurance for ourselves, but rather for our loved ones. Many of my clients say, "I don't want anyone getting rich off of my death." That's fine, but making sure your family can maintain their current lifestyle if you die will take some money that you probably don't have.

When I sit down with a client to discuss life insurance I ask a lot of questions, especially about finances. It can be uncomfortable sometimes but we discuss items like:

• Debt. Credit cards, mortgage, car loans, etc. can be paid off with life insurance proceeds. Why would you leave your family with a bunch of bills?
• Income. It doesn't matter if you are the main breadwinner or working a part-time job, you still contribute and that loss of income will need to be replaced. 
• Education needs. Do you want your kids to go to college or technical school? Wouldn't you like them to concentrate on their studies instead of worrying about student debt?
• Final expenses. Yes, this is your funeral costs, but should also include the costs "associated with death". Odds are you may be in the hospital for a few days before you die, and of course, that won't be cheap either. 

Give us a call or schedule a phone appointment with us from our site. We're here to help you protect what is most important in your life. 

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!

Is The New Normal Is Here Yet?

Things have changed quite a bit in the last few months. Businesses, restaurants, theaters and malls have shuttered their doors. The ones that managed to keep afloat have reopened slowly. Sports organizations, from high school to professional levels, have had to move their schedules around with players catching the Coronavirus. If it wasn't for The Tennis Channel I would be out of my mind, as they managed to show a lot of smaller tournaments during the summer months to keep me occupied.

With all of this in mind, I went out to my mailbox this week to hear the familiar sound of a schoolbus. As it came down the street I was struck by the fact that I had not seen one in nearly six months. And as the kids are on a "hybrid" schedule, it was good to know that maybe things are slowly getting back to normal. 

Personally, I don't think we will be getting back to a real "normal" until next spring. But even then there will be a lot of changes. Of all of these changes, one will be how we do business in the insurance world. 

Like most life insurance agents, I have had to do more remote work. Actually, we had a lot of the systems in place already. Web based applications were being offered by nearly all of the insurance companies. Using an online calendar that my prospects and clients could use to book their own appointments was also around, and we had taken a serious look at using it. Covid just sped up our decision to implement it. 

Another change was the addition of some products to our menu. Sure, we always had access to policies like Hospital Indemnity and Cancer plans, but most were on a payroll deduction basis. Now we could offer versions that were "stand alone" plans, again with applications that could be taken right over the phone.

By using one of our carriers quoting engine for life and disability insurance (in the upper right of this page), readers of this blog could get a ballpark price of what a policy may cost. This saves you time, and with the "How much protection might I need" link, you can calculate the amount of coverage would actually protect your family instead of just guessing.

 Another change that was taking place pre-pandemic but has really gotten more attention in recent months has been the paramed requirements for life insurance applications. Having a nurse come to your work or office to get your vitals, along with some bodily fluids in some cases, has never been on anyone's wish list. The people who are taking the self-isolation more seriously than others don't necessarily want a stranger in their home, especially one who had been in the homes of other people recently. 

These paramed nurses, in my opinion, have always been very professional and take every precaution to protect themselves and their clients. But like I said, things have changed dramatically for them too. Some of the insurance carriers have changed their own underwriting rules. For instance, you can apply for a policy with one of our life insurance companies for up to $250,000 with no exam. The result has put several paramed exam companies out of business for good. 

There have been many changes recently, but rest assured that when we do settle in on a "new normal" we'll be here for you and your family. In the meantime, give us a call and let us help you now. 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!

September Is Life Insurance Awareness Month

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

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

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

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

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

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

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

The perception: They think life insurance is expensive.

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

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

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

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

What Is Mortgage Protection Life Insurance?

As a general agent for a life insurance company, I work with and recruit, agents from all over the country. Some sell life and health insurance products exclusively, while others also work in the property and casualty market as well. Discussing their insurance practices and learning what they do for their clients is always interesting to me. So you will understand why I wanted to do some asking when I kept hearing about "mortgage protection life". 

The problem was that every time I asked an agent about it, I would get a different answer, mostly because there are a few different kinds of policies. Some were actually selling "mortgage protection" insurance, which compensates the lender if the loan defaults. Not life insurance, but confusing because of the name. 

Next is Private Mortgage Insurance (PMI) which is a type of life insurance for conventional loans and arranged with a private company. It can increase your loan and is typically included in your total monthly payment. Typically it is required when someone purchasing a home puts down less than 20% of the home's purchase price. This policy protects the lender but you pay for it. The only real advantage to it is that it will allow you to make that home purchase if you don't have the 20% down payment.

Before the great recession of 2008, I considered selling PMI as part of my portfolio of products and asked a few agents I knew if it was worth their time. The answer was a resounding "no". Apparently people didn't like having to pay the premiums on a policy that would not benefit them. As home values were steadily increasing, the new homeowners would wait six months and having a new appraisal done on their houses. The values had increased in that short time and all of a sudden they had enough equity to drop the PMI coverage. 

Then there is "mortgage protection life insurance", which is designed to pay off the remainder of your mortgage if you were to die. Now this one actually is life insurance. In a nutshell, this is a decreasing term policy, which means the face amount of the policy decreases as the principle of decreases. 

You would think that a policy with a decreasing face amount would be a bargain. Unfortunately it isn't always. One of the problems is that these policies are not usually fully underwritten. There may be a minimal amount of health questions but for the most part you can be fairly unhealthy and still have a policy. This puts additional risk on the insurance company and they put that risk in your higher premiums.

Yet another problem is that the face amount decreases. And it won't coincide with in sync with the principle owed. Who wants that? Also, what if you refinance your policy and have to start another 20 or 30 mortgage? What a mess!

If you are a healthy person who does not use tobacco you are more than likely to be better off by purchasing a traditional life insurance policy to cover your mortgage. Because it is fully underwritten, your rate can be much lower. Who doesn't like lower premiums?

But the better part is that the face amount is level, which means you don't have to worry about getting less coverage as your policy continues. So if you were to die in year 3 or year 18 of a 20-year term policy, your family would receive the same amount. That extra money (assuming your family uses the bulk of the proceeds to pay off the note) could go for education costs or just replacing your lost income.

It took me several months to get this through the head of a new agent I met from Nashville. He had been working getting referrals from a local mortgage brokerage company and was afraid he would upset them if he didn't sell the decreasing term. Eventually he came around and found out that most of his clients would get a better deal with a traditional term life insurance policy. 

In the next post I'll go over some of the non-traditional policy terms we now offer. In the meantime, please stay healthy. 

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Do You And Your Partners Need A Disability Buy-Out Plan?

In a previous post I discussed buy-sell agreements between business partners and why they were necessary. To recap, in the case that a business partner dies, the surviving partner will more than likely want to buy out the deceased partner's interest, and to do that they may need money. With a life insurance policy in place for that purpose, the surviving partner will have the funds needed, thus avoiding a scenario where they are in business with their partner's spouse or other family members.

With that in mind, let's take a look at a similar scenario. For this example, we will name our business partners Bob and Neil. Both are married and have their own families, live in nice middle class neighborhoods and are making enough money to pay their bills while stowing a bit into a retirement account. 

One evening, Bob in on his way home and a car crosses the center line, hitting Bob's vehicle. Fortunately, Bob survives the crash, but unfortunately, he is severely injured. Bob is more than likely going to be permanently disabled and will not be returning to work. 

Luckily for Bob and his family, he had purchased a Disability Insurance (DI) policy early on and will have some income to help pay his personal bills. But what about the business? And what happens to Neil in this situation? Will Neil have to do the work for two people and split the profits with his now disabled partner? 

Here again, a good buy-sell agreement needs to be in place beforehand. This legally binding agreements sets the terms and conditions of the sale and the subsequent purchase of the disabled partner's ownership of the business. Having an insurance policy in place helps fund the buy-out, and can also help pay the disabled partner's bills. 

The payout can be distributed in a lump sum, monthly disbursements or a combination of both. This can be decided at the time of purchase.

In some instances the company pays the premiums for the policy. However some smaller businesses will do a "criss-cross" agreement, in which each partner pays the premiums and receives benefits from the disability policy covering the affected partner. 

After an illness or injury occurs, an elimination period, has to be met before benefits are paid. This elimination period is a waiting period that can be a few months or as long as a couple of years. Think of an elimination period as your deductible, but in time rather than money. And just like your car insurance, the higher the deductible, the cheaper the premiums will be. 

Having a buy-sell agreement avoids a lot of potential issues that can occur if a partner is sick or hurt and unable to work. This plan can prevent a financial loss or even bankruptcy by keeping the business afloat. In turn, this helps keeps those on the staff of the business employed as well. And the owners can be assured control of their business decisions, with the freedom to replace the injured owner with a person of their own choosing. Not to mention that they will not be forced into business with any family members of the disabled partner.

Since the purchase price of the business was stipulated in the original buy-sell agreement, the disabled partner should feel he or she was given a fair market price for their share in the business. I usually suggest that the numbers be updated every few years to keep up with the growth of the business.

If you have business partners and would like more information on how to fund a buy-sell in case your partner dies or becomes disabled, let us know. 

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Leave A Gift To Your Favorite Charity With Life Insurance

Every year people all across the country donate millions of dollars to their favorite charities, churches and non-profit organizations. Many of these folks are not too concerned about having their names put on a plaque or other accolades. Their motives may be different from one another, such as a tax write off or just wanting to know that they are making a difference somehow. A few dollars here and there can add up for a charity, but what if you could leave a sizable amount to your favorite non-profit? What if that amount is more than you had ever considered giving away?

You can donate tens of thousands of dollars through the use of a life insurance policy by naming a charity as a beneficiary. It isn't a new concept but it is underutilized. And there are a few ways to do this.

There are some life insurance policies that have a "charitable giving" rider. It allows you to name a non-profit to receive a percentage of your death benefit. The one issue is that there may be limits in place that have to coincide with the IRS's maximum gift giving amounts. The advantage is that these riders eliminate having to create a charitable trust and usually don't cost any extra. The charity does have to be a legitimate 501(c)(3) entity in the eyes of the Internal Revenue Service.

For those who would like to donate higher amounts of money without worrying about IRS limits, the best option is to take out a policy and then donate it to the charity. By transferring ownership of the policy, the charity can control the proceeds. 

For instance, let's assume you donate a policy to your church. Given that the policy will accumulate some cash value (I wouldn't suggest a term policy in this instance) the church can access that money for small emergencies, like a new refrigerator when one dies, rather than wait for someone to donate a fridge.

And since the church is the owner of the policy, they will be receiving the bill for the premium payments. As the donor, you can just write a check for the premium amount to the church and write it off your taxes.

When you do pass on to your great reward, the church, or whatever charity you choose, can receive the death benefit and use it at their discretion. I typically throw out examples like naming a Sunday school classroom after you or a scholarship fund.

Naming the charity of your choice is the simplest way of making sure a non-profit receives the death benefit from your policy. It doesn't offer with the tax advantages that come with donating your policy, but it still reduces the donor's estate by the amount of the death benefit.

If you aren't completely sure how you want to distribute your death proceeds you can name the charity as a revocable beneficiary. This gives you some flexibility in case your financial situation changes, or if you decide to no longer fund that charity. For example, a few years ago, a large non-profit was in the news because their board members were using funds to take expensive vacations. I don't think any of us would want to know that if we died we would be paying for a nice trip to the Bahamas for someone else. If that is the case, you can always change your beneficiary.

If you have a charity or non-profit that is important to you, give us a call and let us help you find a way to endow them through a life insurance policy. 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!

Is Life Insurance Taxable?

About once a year or so I will have someone ask if they have to pay taxes on life insurance proceeds. It's an interesting question, but generally speaking most life insurance benefits are not taxed, but there are a few exceptions. Here are a couple of things to look for.

Most of the time an insurance company will pay a death benefit in one lump sum. However there are times when the policy pays out in installments. The principal is held in an interest-bearing account and pays the benefit over a series of years, like an annuity. The original death benefit is tax free but the interest is taxable. 

Another way it can be taxable is if your life insurance is part of your estate, but this is only a problem if  your estate value is above the estate tax limit, which is over $11million this year. Not a problem for most of us, but one way to avoid this is to make sure your beneficiaries are updated. For instance, if your beneficiaries have died already, the company will generally pay the estate instead of surviving heirs. 

An exception is if the surviving spouse is the beneficiary, as spouses are generally exempt to estate taxes, even if they exceed the estate tax limit.

Generally speaking, life insurance involves two people - the insured, who is also the owner (and payor) of the policy, and the beneficiary. However there are times when there is a third person in the mix. This happens when the insured and the owner are two separate people. When this happens the IRS considers the benefits to be a "gift" from the owner to the beneficiary. 

The good news is that because of the way the gift tax works, you probably wouldn't have to pay it anyway. The tax wouldn't be due until your death and unless your estate is over that $11million threshold.This being said, you should still report any sizable gifts to keep track and stay honest with the IRS.

There is also the issue of "cashing out" permanent life insurance policies, like whole life or universal life. These policies build cash value internally and feature the option of letting you take out some or all of the proceeds if needed. A rule of thumb is that if you don't take out more than you have put in, you should be fine. 

The other option is to take out the funds as a loan. I know of clients who use this option instead of getting a loan from the bank, mostly for the convenience and not having to fill out a lot of paperwork. They will repay the loan and sometimes then repeat the process, as they "warehouse" their money in the life insurance policy. Be aware that if you "cash out" part of the face amount or take it as a loan, when you die, the insurance carrier will pay the benefits minus the amount you borrowed or cashed out.

One thing to keep in mind is that permanent cash value life insurance policies have the possibility of becoming a Modified Endowment Contract (MEC) by the IRS guidelines if you overpay your premiums. With life insurance having a special status, some people will take advantage of paying in more than the stated premiums and the IRS will allow this up to a limit, but beyond that limit your proceeds could be taxable.  

As I stated earlier, the tax liability of life insurance proceeds rarely is an issue, but for those clients who have in depth questions I always suggest they talk to a CPA or even check the IRS website. 

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!

What About Medicare Supplements?

Are you one of the millions of Americans in need of information about Medicare supplements? Each day, thousands of people who are on the cusp of turning 65 years old are getting bombarded by phone calls and brochures about the varying array of products. It can be confusing but luckily it's not as bad as one would think. However there are some basics that can help you understand the ins and outs of Medicare.

First off, the Medicare program was never designed to cover all the costs associated with health care, and it doesn't. This in turn has created a multi-billion dollar commoditized supplemental market. Today, 90% of Medicare beneficiaries have some form of supplemental coverage. 

Medicare supplement plans were standardized so that plans can be easily compared between carriers. For example, all plan A's are the same, and all of the plan B's are the same. The insurance companies are not allowed to add or subtract to them as this would make it even more confusing to those purchasing these plans.  This has made the market more about premium rates than anything else. 

So what does Medicare cover? There are two parts:

Medicare Part A - Hospital Insurance, covers hospital inpatient care and recovery care in a skilled nursing facility, hospice and home health services.

Medicare Part B - Medical Insurance, helps cover some medically necessary services from doctors and other health care providers plus preventative services. 

What does Medicare not cover? Again, it wasn't designed to cover all of your doctor and hospital bills. You are required to pay for a portion of those bills in which Medicare does not pay, including:

• Medicare Part A hospital benefit-period deductible and coinsurance
• Medicare Part B medical annual deductible, generally 20% coinsurance and those charges exceeding the Medicare eligible expense
• Skilled nursing facility coinsurance

These bills can be paid for by yourself or through the Medicare supplement policy that you purchase.

Medicare supplements do offer a great value. They include:

• No provider restrictions. You are not restricted to use a network of healthcare providers. Any healthcare provider who accepts Medicare patients accepts Medicare supplement insurance. If you move, your coverage goes with you.
• Instant coverage. There is no waiting period for preexisting conditions and benefits are paid from the time your policy is in force.
• Low out of pocket costs. Your Medicare supplement and Medicare Parts A and B work together to minimize your share of healthcare costs. With this additional insurance coverage, even unexpected medical events aren't likely to impact your financial health.
• Guaranteed renewable. Your Medicare supplement insurance policy renews as long as you pay the premiums on time and make no material misrepresentations (that means you are honest on your application).

There is some interesting information about Medicare that most people aren't aware of. Did you know that Medicare was started in the 1960's? Back then people paid about 19% of their income for their care. Since then, healthcare costs have skyrocketed but the income levels of older Americans haven't kept pace. And now Medicare constitutes about 14% of the federal budget.

Also, because of the aging Baby Boomer generation, the number of people on Medicare is expected to rise from 47 million to 78 million between 2010 and 2030. 

Obviously there is a lot of information here which makes it more important that you let an insurance professional help you choose which Medicare supplement is right 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!

Buying Life Insurance During a Pandemic

With the pandemic all around us, people are starting to look seriously at life insurance to protect themselves and their families. As a matter of fact, a survey conducted in May and June 2020 by Life Happens, an industry funded education group, found that 67% of Americans say that the virus has been a wake-up call for them and 30% say that life insurance has been one of the topics for dinner table discussion. 

Luckily, there’s never a bad time to make a financial plan and lock in coverage. Life insurance companies and agencies, like Surf Financial, quickly implemented plans to work around the hurdles of the pandemic. For instance, many of our carriers already had systems in place for agents to use web based application systems, but with some extra enhancements we can now have policies delivered to the clients directly instead of coming to our offices. 

Now is a great time to buy life insurance because some companies have started raising prices.  Before those increases kick in across the board, you may want to lock in on a great rate. It’s also a prime time to make an application that won’t require a medical exam. In the past, buying a no-exam policy usually meant paying more because the insurer had less information on you to assess their “risk” in selling you a policy. But the pandemic has made in-person meetings impractical, as well as unwelcome, so having a nurse do a paramed exam may no longer be necessary.

Even before the pandemic, many insurers had been working on ways to use data (such as electronic health records and prescription databases) as a substitute for medical exams and to digitalize the life insurance buying experience. Many life insurers quickly adapted by offering no-exam policies at prices comparable to policies that required an exam. This is giving life insurance buyers more choices for coverage—without worrying about how to get an in-person exam done. 

Note: You may still run into a medical exam requirement if you’re looking for a large amount of coverage (in the millions) or you’re older or have health issues.

Some life insurance buyers will purchase the maximum coverage they can get without an exam, even if they need more. For whatever reasons, whether for convenience or because they have a fear of needles. 

Whether life insurers will continue to offer no-exam policies after the pandemic remains to be seen. Exams could make a comeback if insurers see higher claims than they expected on policies that didn’t require a medical exams. If that happens, you could either see rate increases or the companies will start requiring exams again. 

Another school of thought is that carriers won't go back to the old ways. Part of this is because of innovations that were already starting before Covid. 

The unexpected closing of one of the three primary providers of life insurance medical exams also caused disruption. In early July, EMSI suddenly shut down and insurers had to scramble to get their applicants rescheduled with other exam providers. (The other two large providers are ExamOne and APPS-Portamedic.)

A typical life insurance application includes dozens of questions about your health, prescriptions, family health history, driving record and dangerous activities such as sky-diving. Since the application process is all about the insurer “assessing risk,” questions concerning the virus have quickly became a standard part of applications.

If you answer "yes" to questions like "Have you been diagnosed with Covid?" or "Has someone in your household been diagnosed with Covid-19?" you may not have your policy issued or it may be postponed.  And if you have had the virus and have recovered, you may still have some difficulty getting a policy, mainly because not enough is known yet about the virus. 

Insurance companies have always been concerned when it came to international travel. When the pandemic started, traveling internationally was seen as especially risky from a life insurance buying perspective. Most life insurance companies instituted postponements for applications until after the travel. Once you were back and healthy, and after a certain period of time such as 30 days, the insurer would consider your application. If you have plans for international travel this year, expect a delay on a new life insurance policy for at least 30 days. And that’s assuming you don’t have additional international travel plans.

If you’re ready to buy coverage, life insurance companies are fully open for business, but be prepared for potential delays due to the pandemic: You may experience a delay in the application process if your insurer wants to request medical records, as many doctors’ offices have reduced staff for doing such tasks. If your application will require a medical exam, you might also experience a delay, especially if you’re avoiding in-person contact with strangers.

Take time to look at how much life insurance you need. Applying now is easier than ever. For instance, we have added our calendar to our website, so you can schedule a time for one of our agents to call you to find out which plan you need and how to fit it into your budget.

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!

The Differing Types of Life Insurance, Part 2 (The Term Life Talk)

In a previous post we discussed the reality that there are different types of life insurance and that all are good for some people, but not all are necessary for all people. As this series progresses, we'll take a look at each type of life insurance and discuss their pros and cons. For now let's look into term life coverage.

Term life is, as it's name states, good for the term of the policy. A 20-year term is good for 20 years, and in that 20 years, the price won't go up on you. At the end of the term, in this case 20 years after the purchase date, the policy will typically end. In some cases the insurance company will continue to policy as an annual renewable term (ART), which means each year the price will increase.

When is it a good idea to buy term coverage? Most people will purchase this during their working years, which is usually when they can quantify the time they need coverage. For instance, if you are pretty sure that your home will be paid off in 20 years and in that same amount of time your kids will be grown and on their own, a 20 year term policy is appropriate.

My favorite term life story is about a friend of mine who told me he borrowed money from a relative and needed to secure the loan with a life policy, in case he died before he was able to repay the loan. The insurance carrier required a paramed exam and my friend's wife was confused when the nurse showed up at their house. Apparently he did not tell his spouse about the loan and had to come clean.

Term life can be very affordable, as it is only coverage for death and builds no cash value. You can't borrow against it either. With this in mind, it's can still be a great value.

There's a school of thought that states that people shouldn't buy permanent coverage, which we'll discuss later, but instead should buy term and invest the difference in premium. My experience shows that people will purchase the term coverage and say that they'll do the investment part at a later date, which never comes.

A great feature of most term policies is a conversion feature. This allows you to convert all or part of the coverage to a permanent policy with no health questions or additional underwriting. Let's assume that in 10th year of a $500,000 policy you have a heart attack. Even though you've survived, the heart attack may prevent you from buying additional coverage. But you can convert, say $25,000, to a permanent policy. The remaining $475,000 will still be there, but now you have some coverage for final expenses that will always be there for you, as long as you pay the premium.

Note: When you convert a term policy, the premium is based on your age at the time of the conversion, not the age you originally purchased the policy.

Term life insurance can be a great fit for young families and people on a budget. If you aren't sure if term would work for you, drop us a note. Or you can book your own phone appointment from our website. We want to make buying insurance easy for you. 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!

The Life Insurance Check Up 2023

Hopefully, you go to your physician once a year for an annual checkup. The logic behind this is to make sure you are in good shape and if there is a problem it can be dealt with before it gets out of hand. The same is true of your "financial wellness". 

In that vein of thought we at Surf Financial Brokers ask, "Have you had an annual life insurance check up?"  It only takes a few minutes and could save your loved one a lot of pain down the road.

First, make sure you have enough life coverage.  Many people think they can get away with a small policy through work, but it's probably not enough to keep your family in their home and retain their lifestyle if something were to happen to you. And if you in a two-income family like many other Americans, your income definitely helps pay the bills. A quick and easy way to determine the amount of life insurance you need is with our calculator.  It only takes a few minutes to plug in some numbers and get a pretty accurate amount of coverage.  Make sure you have enough coverage to pay off debt, cover education costs for your kids, replace income and costs associated with death, such as an extended hospital stay.  Don't forget to include final expenses, like burial or cremation fees, funeral expenses etc.

Second, make sure your beneficiaries are who you want.  When you took out your policy years ago, you picked out who you thought were the right people to be your beneficiaries. We recommend that you take another look at whom you have chosen and make any adjustments that may be needed. An irresponsible adult child or a deceased loved one may not be as suitable as you thought originally.  Have your agent get you the correct forms for beneficiary changes. Keeping your beneficiaries up to date will save your loved ones a lot of time and expense. 

This was the case when my father passed away this year. He had three life policies that had not been looked at in years, even though I asked. One policy had his father and mother listed as the beneficiaries.They had died in 1970 and 1992 respectively. Another had my mother listed as the primary beneficiary, but she had died in 2011. The third policy was the really confusing one, as he had listed his business as the beneficiary. Again, the business had been shut down years earlier. 

Which leads us to the last part of the check up.  Let your family know who to contact if they need help at your death.  Unfortunately, life insurance agents come and go.  The trusted agent you purchased your plan from may or may not still be in the business, or they may have gone to work for another carrier.  If your original agent is no longer available to help you, contact the company and request a new agent of record to assist you.  Leave this information available for your loved ones so they don't have to waste time and money trying to file your claim. And be sure to keep documents like life insurance policies where your family can find it, like a safe or lockbox. My sister has a file that her adult children are aware of that has all of her insurance information in one place. 

If you need help or have questions, please let us know.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Would You Trust This Doctor?

Imagine you live in a town, and it that town there is a physician who treats every ailment the same. "I only prescribe penicillin,"  says the doctor.  Everyone through the door, whether suffering from an infection, a cold, broken bones, mosquito bites or just a headache gets the same medication to cure them. 

In reality, if this doctor existed, he or she would be run out of town on a rail, or at the very least, have their license to practice medicine revoked.

However, there are financial advisors and insurance agents who do the same thing.  Have you ever heard the agent that says "I tell all of my clients to buy term and invest the difference"?  One cure for a variety of financial ailments. 

People have different situations, and like snowflakes, no two are exactly the same. Consider factors like marital status, elderly parents, kids who are at home, kids who are out of the house and those who have returned back home. There are other variables as well, like debt, employment status, benefits through work and many others. I can go on listing all the things that make your financial situation different from others. The gist is that one insurance product may be good, but not great.

At Surf Financial our philosophy is this:  There are a wide variety of insurance and investment products out there and they all serve a purpose somewhere, but not every product is for everybody.  Does a 25 year old need an annuity?  Probably not, but some universal life or a savings plan might be a good start.  Does a 75 year old need a term life policy?  Not unless they need it to secure a loan or have another specific need in mind. 

The truth of the matter is that if an insurance agents says to you "I don't sell that product because I don't believe in it" the odds are good that either they don't understand how that insurance products works and who it works for, or it simply is not available to them. 

In the first case, I remember working with agents who just could not wrap their heads around universal life insurance. Their excuse was that if they couldn't understand it, then how could they explain it to their clients. Going back to our doctor, can you imagine hearing "I don't understand how a virus works so I only treat fractures"? 

And there are those agents who do not have access to certain insurance products. I knew a couple of agents who were "captive", which meant that they had contracted with a company who only allowed them to sell approved products within their portfolio. Newer agents like working for these kinds of carriers because they only need to learn a handful of products. In the long run, it put them and their clients at a disadvantage. 

In other words, without asking questions, a true "advisor" isn't any better than the doctor with one prescription.  Let us help you by having an honest conversation. Yes, we will ask you some questions to find out what your situation is, but it only takes a few minutes. And if you are looking for the best disability insurance quotes, life insurance or a cancer plan, give us a call. You can even book your own appointment to make it even more convenient. 

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!