"Group Benefits" For The Self-Employed

I spend a portion of my time working in the "voluntary benefits" arena as an enroller, or "benefits counselor". In a nutshell, I enroll benefits for large groups, like schools, hospitals and municipalities, for example. Typically I sit with an employee in a one-on-one meeting and review their current benefits and check to see if they need any other insurance poducts. It's great to meet these folks and help them with insurance products like dental, vision, disability, accident and life insurance. 

The majority of my working time is spent working with individuals, however, many of which are self-employed. Realtors, sales professionals, small business owners and other "contract employees" or 1099's for instance, make up a lot of my clients. These great people are just as deserving of having decent insurance products, regardless of the size of their company. 

With this in mind, we invite all to visit our site and take a look at some of our voluntary products that can be purchased on an individual basis. There, one can get quotes for products such as life, cancer, hospital indemnity and accident insurance right from our site. And if you see coverage you like you can even start an application!

For some of our other products, like disability insurance and long term care insurance, one can book a short phone call to get a quote as accurate as possible.* We are independent agents and have access to many of the best policies. 

As independent insurance agents, we are also independent contractors, which means that we use our own products. Having a disability or cancer plan come out of our bank account instead of a paycheck doesn't change the fact that we need these important insurance plans. 

Please take the time to get a quote for yourself or your family. It probably won't cost as much as you think. 

*Quotes are not guarantees or offers of coverage and all policies 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!

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!

What Is Being Left Out Of The Holy Trinity Of Insurance?

One part of my insurance practice involves worksite supplemental benefits. (Think dental, vision, cancer plans, etc.) On occasion, I give talks to groups of employees on these benefits. And one of the things I cover is the "Holy Trinity of Insurance", which is comprised of their health coverage, their life insurance, and last but not least, their disability insurance (DI).

Over the next day or so I'll speak with these employees individually and sure enough, someone will come in and ask for that "Holy Trinity insurance". Pretty funny I think, but it lets me know that I'm getting through to them. 

The reason these people buy DI is because they see the value of insurance on their paycheck. And that sums up DI in a nutshell - income insurance. You insure your house and car, which is paid for by income, so it makes sense. And no matter if the client is a realtor, plumber, attorney or a doctor, if they can't work, they can't pay the bills. 

There are many self-employed folks who don't have access to these group plans, but still are interested. For them, we offer individual plans which differ slightly. For instance, not only is the client's health underwritten, but sometimes, the personal income will be underwritten as well.  I know of one carrier who underwrites income at the time of the claim. Depending on the disability insurance company, they may want copies of your tax returns for the last two years at the time of the application. I have one carrier, however, that asks for that information when a claim is filed.

And your job is part of the equation too. Generally, the less safe your job is, the higher your premium. Logic says that a welder would be at a greater risk of getting hurt than a retail worker. With this in mind, some occupations are harder to cover than others. I've had great DI clients over the years who were teachers, boat engine mechanics, firemen, attorneys, realtors and truck drivers. 

I have an agent who was concerned about this for their realtor clients. Because realtors incomes are rarely the same from year to year, how would the company know how much to pay out? When I had an opportunity to speak to an underwriter she eased my fears and said, "We are fully aware that incomes change and will pay out the amount the policy designates. Our concern is making sure that client has a job and that they can't work to do that job." That made me feel better.

Years ago I met a professional golfer who played on a "minor league" tour and was interested in DI. Unfortunately, I couldn't find a single carrier that would make her an offer. Her "professional" status was a quick application killer as the company wouldn't know how much to pay out if she were sick, or more likely, injured. 

The cost of disability insurance is less than you would expect, but by insuring your paycheck, it's worth every cent.

If you are looking for short term or long term disability insurance coverage, we are happy to help you out. You can even book your own appointments to fit your schedule.

If you would like a quote, feel free to try the link on our website and have a insurance quote emailed to you. (Remember that all quotes are estimates and rate may change in the underwriting process)

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 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!

How Do The Self-Employed Get Benefits?

I am very comfortable working in the group benefits market. Helping people who work for large companies, school systems and municipalities has been part of my world for nearly 20 years now, and making sure they have the right benefits is a task I welcome.

At the same time, I focus the majority of my efforts toward those people who don't have a large corporate employer. As a 1099 contract employee, I realize that it is up to me to find my own affordable benefits that will help me and my family in the event I should get sick or hurt, or worse, die. That is why I enjoy helping other business owners, entrepreneurs, sales professionals and the otherwise self-employed get the coverages they need.

There are a few differences in the types of products available. Those large group products have less underwriting, and in some cases no underwriting. "Guaranteed issue" means that the insurance will cover a person with no questions (except tobacco usage). "Simplified issue" is another option, which means there may be just a few health questions. Those "knockout questions" will decide whether or not a policy gets issued. One "yes" can do you in.

But policies that are issued on a guaranteed or simplified issue basis typically take on more risk, and that risk is passed on to the employee of the group in the form of higher premiums. One of the tricks agents us when selling in the group insurance field is to quote the premium based on pay frequency. If you are paid weekly, $10 each week sounds a lot better than $45 each month. 

For the rest of us, having to find coverages that aren't deducted from our checks can be overwhelming and daunting. It doesn't have to be that way though. Use a couple of our tools and watch our product videos to see what is available and how these products work. 

Let's look at a few of these insurance products.

• Life insurance. We suggest that you take a look at affordable term life insurance while you're working, but maybe also get a small permanent policy for final expenses. For our younger clients we offer a term life insurance policy that will carry them out to age 65! And there is no medical exam* for policies under $250,000. 
• Individual Disability insurance. This should be called "paycheck insurance", because that is the purpose of this policy. When trying to determine how much coverage you should apply for, I suggest the "H.U.G." method by figuring out much monthly expenditures are for housing, utilities and groceries. (Note: individual disability policies generally don't cover maternity unless the doctor deems it necessary during the pregnancy.)
• Business Overhead Expense insurance. This is another version of the previously mentioned Disability insurance, but the benefits cover the bills of your business, not your personal bills. If you rent an office, have utility and payroll expenses, this plan gives you the time to think your options over if you get sick or hurt and are not able to work. You may recover, retire or sell the business, but you won't be rushed into a decision.
• Cancer insurance. I have found that when working with large groups of employees, cancer plans are popular through word of mouth. If one employee is diagnosed the other staff members realize how expensive the out-of-pocket costs are. We have a couple of different options for cancer insurance, one being a traditional reimbursement plan, as well as a lump-sump plan. Both can cover deductibles and co-pays and offer a wellness benefit. (One of our plans also covers several other diseases as well, like meningitis and tuberculosis.)
• Cancer, heart attack and stroke insurance. These plans give you the option to choose if you want coverage for one, two or three types of illnesses.
• Accident insurance. Coverage for any type of accident, from cutting your hand and needing a few stitches to serious automobile wrecks. As long as you get some medical attention these plans pay a benefit. Great for active people or if you have kids who play sports.  

If you are interested in learning more about these products, visit our Products and Quotes page from our website. There you can run your own quote for life and disability insurance, as well as watch some short videos about some of our other products. If you have any other questions, leave us a note on our contact form or book an appointment for us to give you a no-pressure call.  In the meantime, stay healthy!

*Medical records will be requested and may result in some clients needing an exam. 

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!

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!

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.

Another Real Life Story For DIAM

As it is still May and still Disability Insurance Awareness Month (DIAM) I wanted to share yet another story and testimonial from someone whose life was greatly impacted due to a disability.

When Scott Rider was diagnosed with Parkinson’s disease at just 47, the life he once knew as a financial advisor and avid runner changed forever. His family's lifestyle didn’t have to change thanks to disability insurance.

I love working with clients who figure things out without me having to explain them. Several years ago I was helping a local business owner with his life and disability insurance. He said, "You know, if I die my family will bury me and have life insurance to move on with their lives. But if I get disabled and can't work, then I'm a burden. I'm not able to contribute and someone is going to have to take care of me. And that's going to cost money, either by paying someone to help me, or in lost income."  

He got it. He understood the importance of having a disability policy and knew how devastating it could affect his family if he was permanently disabled. And the money would come from an insurance company, not his savings account or his spouse's income.

Let us help you plan for those unforeseen landmines that can get in the way of your family's financial goals. 

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.

A Great Disability Insurance Story

As it's Disability Insurance Awareness Month (DIAM), I thought I'd share a story about one of my clients. We will call her Mary to protect her identity. 

Several years ago, Mary had married one of my clients, who insisted that she purchase some life insurance and a disability policy. Mary was reluctant at first, but agreed and purchased both because "my husband told me to." She was very sweet about it all and I think she was just humoring me as well as her new spouse. Each of the newlyweds were small business owners. 

A year or so after she was approved for her policy she was at home when she smelled something burning. A fire had started around an electrical outlet and she managed to get out of the house, only to realize that her beloved pets were still inside. She went back in to rescue them but the fumes and smoke were too much. The fire and rescue people found her alive but burned badly. 

I was totally unaware of the situation until I read a mention of it on Facebook. Not sure of her condition, I called her husband who said she had been moved to a burn center out of state. He had already forgotten about the policy she bought, so I sent him the claim forms, which he forwarded to her mother who was taking care of her (he had to tend to his business).

Within a few weeks the insurance company was sending out the benefit checks. Mary was unaware of any of this because she was heavily sedated. Every few months I would get copied on correspondence from the company as they continued to pay the claim. After months of healing and rehabilitation, Mary was able to leave the care of her medical team. I heard she was back in town but hadn't seen her, so I was surprised when she crept up behind me in a Mexican restaurant and gave me a hug. 

"I just want to say thank you for making sure I had that policy and following up," she said. "That money came in handy while I was away!" We spoke for a few more minutes and she left. Even though she was still on the mend she looked great and I was happy to see her in good spirits.

I share this story people because it shows how a good disability policy works. Even though the vast majority of claims are actually for illnesses, her story resonates and has led to more people asking for this coverage. In these times of Covid19, people are starting to realize the value of good insurance and we are here to help. 

If you're curious as to how much a policy like this would cost, run yourself an estimate on the "Get A Quote" tool in the upper right of the page.  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

DIAM Is Here!

May has been designated as Disability Insurance Awareness Month, which is a great idea when you consider that Disability Insurance (DI) is one of the most undersold, yet necessary products offered. There are a lot of misconceptions about the product and how it works, along with some screwy ideas of when to get rid of it.

When I speak to a group on the topic of different types of insurance, I discuss the "Holy Trinity of Insurance" (covered in a previous post), which are life insurance, health insurance and DI. Oddly enough, some people insists that they can't afford it, but don't understand that it protects their greatest asset, their ability to earn a living. Being able to earn an income allows us to purchase the things we want, like a home or car. If we can't work, we still need to pay for things we need, like housing, groceries and utilities.

And yes, DI covers Covid-19, as long as you don't have it when you apply for a policy.

Check out the short video and let us know if we can help you preserve your greatest asset.




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

Do You Have Any Insurance That Covers Coronavirus?

Lately a lot of people have me, as well as the rest of the insurance industry, if there are any policies that cover the Covid-19 or Coronavirus. The answer is of course, yes. We can quickly cover a few:

• Major medical - As with all ailments, your major medical has few exceptions, and the virus is not one of them. As usual, you'll still on the hook for co-pays and deductibles, but that is insignificant if you're in the hospital for a few days or longer.
• Hospital Indemnity - Speaking of hospital stays, a hospital indemnity (HI) plan is usually offered through work, but Surf Financial Brokers has started carrying an HI plan that can be offered on an individual basis. 
• Disability Income - A traditional DI plan will cover you and your paycheck if you are out of work due to the virus, or any other illness. There may be an elimination period (the time before your benefits actually begin) of between 0-30 days, so check your policy. 
• Life insurance - If you have life insurance and die from the Coronavirus, your beneficiaries shouldn't have to worry about the company not paying the claim. First of all, legally the carrier has to pay under the terms of the policy, which is a legal contract. Secondly, it would be a public relations nightmare if the insurance company arbitrarily decided to not pay. 

Any or all of the above policies should pay a claim if you were to get sick from the Covid-19 virus, but be aware that the life, HI and DI plans may pre-existing conditions exclusions. In other words, don't expect to get a policy issued if you just had the virus.

For a list of policies offered by Surf Financial Brokers, click here. Some even have interesting videos.

Most importantly, please stay well, healthy and practice social distancing as much as possible.



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

Trying to Find the Silver Lining In the Coronavirus

Speaking on behalf of a large contingency of Americans, I'm exhausted of the amount of information, and yes, disinformation, about the Coronavirus and the numbers that go with it. Millions out of work, tens of thousands (at the time of this writing) infected and thousands dying. It's all so depressing.

As if those numbers weren't bad enough, businesses are shuttering their doors, supply chains are thinning out and rats are running amok in New Orleans. As I watch the markets each day I realize how truly fragile our economic lives are when a major catastrophe comes down the pike. Some have referred to our economy as a house of cards, which may or may not be true, but we all should take the time to reassess our own business situation. If your home suffered from a minor earthquake, you would reinforce your foundations, right? Maybe we should do that for our professional lives as well.

As an insurance agent, I suggest that all salespeople, business owners, independent contractors and otherwise self-employed take a serious look into disability insurance. Your number one asset isn't your house or car, but the ability to earn a living. And if you get sick and can't work, the bills don't stop coming.

With all of that said, there are some good things in the news. The public is seeing who the truly important people are. The working middle class, like cooks, cops and, of course, nurses and other healthcare workers, are taking the brunt of this crisis. We tell our military "Thank you for your service" all the time, but do we express appreciation to the ones who pick up our garbage, cook our food, and deal with us in this service based economy? My guess would be not often enough. Take the time to be extra nice to the person who has to ring up your groceries or deliver your mail.

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

The Differing Types of Life Insurance Pt 4 (The Universal Life Talk)

We covered, in broad strokes, term and whole life policies in my previous posts and we're getting to the end of this series. (Yes, life insurance is one of the most of exciting topics and I'm sure you're going to be sad when this is over.)

Finally we have one of the most confusing products of all time, Universal Life (UL). Less expensive than whole life but with the ability to build cash, UL is a good fit for some clients. The "engine" that built cash values on traditional UL's for years was interest rates. Back in the 1970's and 1980's when interest rates were high, many agents who should have known better, sold UL's as investment vehicles. Years later, when interest rates dropped dramatically, the cash values inside those policies were being overtaken by the "cost of insurance", which rises as years go by. Basically, the policy will eat away at itself if the interest rate isn't high enough.

And to make up for the shortages, the premiums on your policy may increase. I met a gentleman who had taken out a policy in the early 1980's and since then his premiums had increased to nearly $300/month. On top of this his health had taken a turn for the worse over the years, with diabetes and heart issues now in the picture. He would have a very difficult time finding a new policy and was forced to keep the one he had.

I worked in an insurance office in the early 2000's and the owner threatened to fire anyone selling a UL. She was on the receiving end of angry clients who wanted to take a few hundred dollars out of their policies and it wasn't there. These policies had been in effect for years and there was nothing to show for it.

The insurance companies woke up to the dismal sales (no agent wants his head bitten off so they didn't talk to the clients about them) and devised a way to resurrect the UL. They took the "index" from an indexed annuity and used it to replace the interest rate. The Indexed Universal Life (IUL) was born!

In the life insurance community there has been debate for years on whether or not the IUL's are as good as they seem. The ones who don't like them are typically agents who have been selling whole life policies and see these policies as a threat to their income (see part 1 in this series). I worked for a very large life insurance carrier who forbade us from selling anything indexed and threatened us with termination.

The key to making an IUL work well is how it's structured. Assuring that it's funded properly will make all the difference in the world and can help down the road as a retirement supplement. And many top carriers of IUL's include riders like living benefits and critical illness at no charge. This means you can use your policy while you're alive, if need be.

A few years ago Patrick Kelly wrote a book titled "The Retirement Miracle" in which he explains how an IUL is a great savings tool for our later years. The video quality isn't that great but here goes..



Finally, as I mentioned in the previous post, the better alternative to a final expense policy (which is usually a whole life plan) is a Guaranteed Universal Life (GUL) policy. A GUL is like a traditional UL except it builds minimal cash value. However, it's guaranteed to stay the same price, like a whole life, until your passing. The obvious question is why would you want cash value in a final expense plan? You wouldn't. The premiums are much lower but be aware that the GUL is typically underwritten like any other life insurance policy, so if you're healthy, you would be doing better when it comes to price.

Hopefully, you'll have a better understanding of what each kind of policy can do and make a wise choice when purchasing protection, not for yourself, but for your loved ones. I realize that this is a lot of information so if you have any questions leave them in the comments section below. And 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. 

The Benefits of Life Insurance In a Down Market

When we think of life insurance, often the first thing that comes to mind is protection. That protection extends to both good and bad markets - and not just death benefits but living benefits as well.
Given the recent financial news, here are some things to consider.

• Tax free death benefits can protect an insured's income and assets from market volatility during their working years and beyond, and provide a legacy when markets recover. 
• Income tax-free withdrawals and loans may be used as potential sources of emergency funds, or to help meet liquidity needs.
• Life insurance cash values can be accessed during a down market to avoid selling other assets and "locking in" losses.

Different types of life policies offer other advantages. Give us a call and we'll discuss with you over the phone.

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

The Money Machine 2023

Recently I had a conversation with one of my favorite clients. She's had her life insurance with me for a few years. I've tried to convince her that she needs some disability insurance, as she is single and lives alone. No kids and no one else to help her pay the bills. As a self-employed person, her income is above average. She was hesitant, mostly due to the premium payment.

"Let me ask you a question," I said. "But first, I want you to think about your annual income. Get that number in your head."

"Okay, I have the number," she said. "What next?"

"Now imagine that you have a small machine in your house that prints money." A smile crossed her face as she thought about it. "Every year that machine prints the same amount of money as your income." She was curious. "My question for you is would you insure that machine?"

She sat up and said, "Well, yeah. It's printing my income. That's a lot of money!" That's when it hit her.

"You're the machine," I said. "And if you, as a machine, break or go offline and can't work, you won't be able to pay your bills."

She completed that application that day. And she gave me a few referrals as well. Thanks, money machine! Let us help you insure your paycheck. 


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