The Ever Changing Covid Landscape

A couple of weeks ago I had a routine follow up visit with my family doctor. Everything was good (thanks for asking!) and our conversation eventually got to Covid. She mentioned that her medical practice had expanded their office hours and was now doing drive up testing on the weekends. "But we can do one on you right now if you want," she said. "I'm pretty sure your insurance will cover it if we do it here in the office."

That sounded good to me and the next thing I know she has what looked like a long cotton swab inserted down my throat. After a slight gag (apparently the sign that I'd had enough) she told me that the results may take a few days. A few days almost turned into a couple of weeks but I eventually found out that I was not infected. 

I was doubly fortunate. First, my results were negative, and given that I live in a designated "hot spot", I had resigned myself to the possibility that I could get the virus. But I was also grateful to have insurance cover the cost of the exam.

Getting a phone call through to this doctor was nearly impossible, so I had to physically drive to their office and ask someone in person for my test results. While there, I asked about the anti-body test that was available at a local blood drive. I had received an email from a local professional organization to come down and donate blood, at which time they would be conducting the anti-body test.

The nice lady, who wasn't my doctor but had access to all of my information, let me know that the anti-body test was not as accurate as previously thought, but more importantly to me, my insurance may not cover the cost. I was under the impression that it would be part of my "donation" of blood, but she looked at me like I was naive. I get that a lot lately.

The second reason I was grateful was that I still have my insurance. Unfortunately, about 5.4 million Americans have lost their medical insurance coverage between February and May of 2020. The nonpartisan consumer advocacy group, Families USA, found that the estimated increase in uninsured workers was 40% higher than the highest previous increase, which occurred during the financial crisis of 2008-2009.  The bottom line of all this is that more people are lacking health insurance that ever before.

As less Americans have health insurance, more are applying for life insurance, especially younger people. Those under 44 years old have posted a 3.9% increase in applications, which may not sound like a lot, but it is when you consider the financial pressure everyone is under. 

Many carriers have tightened up their underwriting procedures during the pandemic, which may be keeping older people from applying for coverage. Or the disparity may be attributed to the way life insurance, as well as over types of coverage, is sold. With companies going to a more digital application process, older folks may not be applying with an agent as they usually would. 

Our agency, Surf Financial Brokers, has tried to make it as easy as possible for everyone to apply for life insurance. People can go to our website and book their own appointment, at which time we give them a call, usually scheduled for 30 minutes, to find out what their needs are and what the budget is.  And if we can find a policy that is a good fit, we can take their application right over the phone. 

Let us know if you need help with your life or disability insurance needs. And as always, stay healthy!

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

The Infamous Buy-Sell Agreement and How To Fund It

One of the groups of people I love to help is small business owners. As a entrepreneur (I have an insurance agency and a consulting business), I can relate to these people. Many have left the corporate world to take on the day-to-day struggles of owning their own operation, and in that process they wear a lot of hats. Every once in a while I will come across a business that has multiple partners with each partner filling a role that the other partners don't want or aren't as good at performing. In other words, less hats. 

My father used to say that "the worst ship to sail on is partnership". He wasn't nearly as witty as he thought he was, but I understood what he was trying to say. Years earlier he had opened a small engineering firm with someone and apparently it was a horrible experience for him. His version of events was that he was doing all the work while the other guy just took half the profits. I don't know how accurate this was, but I do know that he rarely spoke of the other partner and that the business was dissolved after a couple of years. 

I have also had some shady dealings with "partners" who didn't quite carry their part of the workload and couldn't get out of their fast enough. After losing money and feeling stressed I decided to work solo from that point on. Now I just have what I like to call "professional business arrangements", in which my income isn't reliant on the production or work ethic of someone else. 

This doesn't mean that partnerships are bad for everyone. I've seen many that work, with partners who are college friends, family members or spouses. With businesses such as hotels, real estate firms, restaurants and others, partners find a way to make the most of each person's strengths and weaknesses. And in the process, they put their egos aside and share the success of their work. 

On those instances when I do get the opportunity to work with business partners I eventually ask if they have a contingency plan if one of the partners were to die. You see, people typically think long and hard about starting a business, but few consider exiting a business, much less having a person they rely on for their income to die too soon. The responses I get are varied, from "I'm not worried about it" to "I never gave it much thought". Scary.

An old friend told me that his nephew had opened a sports pub/wing joint with a distant cousin. Neither of these two was married and both were questionable when it came to their character. "Sounds like they could use a buy-sell agreement," I said. 

A buy-sell agreement is a legal document that states that if one partner dies, the other partner has the option of buying out the dead partner's stake in the business. This is important because the surviving partner may not want to be in business with the deceased partner's widow or next of kin. Especially if they never got along in the first place. 

Sometimes the buy-sell agreement is part of the legal documents that form the business, but if not, a good attorney can write a short document that can fit the bill. The most common way to fund the buyout of dead partner's stake in the business is with a life insurance policy. 

I met with the two cousins separately. The first one I met with was cordial and I explained that if his partner were to die he would be in business with the guy's mother. He frowned and made it clear that wasn't  something he would want. He knew the guy's mother and wasn't very fond of her. 

The second partner had a different view of the world. "If you're cousin dies, you're going to be in business with his grandmother." The grandmother was a tough lady who was known for being an even tougher businesswoman.  He shrugged his shoulders as to say "so what?" 

As the first partner saw the value in what I was presenting, the second one had no desire to buy a life insurance policy on his cousin. The deal never happened, mostly because they couldn't get on the same page when it came to this or other topics. Shortly thereafter their business shut down. 

When I talk to business partners, I throw out a "worst case" scenario. "How would you like to be in business with your dead partner's widow and her new boyfriend?" As bad as it sounds, it happens more often than you would think. A good buy-sell agreement funded with an affordable life insurance policy can be a simple fix to a potential nightmare. 

If you have a business partner, or multiple partners, and don't have a buy-sell agreement in place, I highly recommend you have an attorney draw one up for you. And let us know if we can help you put a policy in place to help you fund that agreement. In the meantime, stay healthy and feel free to comment below. 

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.

How To Avoid Using a GoFundMe Page

One of the many faults of our current healthcare system is the dizzying array of deductibles and out-of-pocket expenses that come when we least need them. A few months back I spent nearly a week in the hospital. The total bill was over $80,000 and thankfully my health insurance covered the vast majority of it. However, I still had bills to pay. Yes, my deductible is high and I expected that, but there was also the issue of various health care professionals who were not in my network, as well as my loss of income. 

When the dust settled I was on the hook for around $7000. That's a lot of money, regardless of your income. One option could have been to to call the hospital and the other providers and ask to be put on a payment play. There's nothing like making payments for the next 10 years. Or I could have started a GoFundMe page and asked friends to pay for me.

As an insurance agent, I think a GoFundMe page is a horrible approach, yet many people do it. And not trying to sound political here, but I find it ironic that the people who claim to be against socialized medicine are the ones I know that have gone that route. In other words, the very people who think that we shouldn't have to contribute through taxes to assist those who can't pay their medical bills are asking their friends, neighbors and family members to contribute to their medical bills. 

Some will argue that it's different because they are not being forced to pay into a government plan, but the concept of having to chip in when someone didn't have insurance is generally the same idea. Voluntary or not, having a community of people give "assistance" is still a socialized plan. Or is it? 

Sometimes I have these kinds of thoughts and question if I've thinking in the wrong direction. So I picked up the phone and asked a few people I trust and respect for their thoughts on the matter. A couple of them were also insurance agents who I have known and referred clients to in the past. Another group were local business associates I network with locally. I asked them all the same question without being too specific. And for the record, none of these people were extremely political in one direction or the other.

The question posed was as follows: If someone doesn't have health insurance and starts a GoFundMe page to pay their hospital bill, does asking others to contribute amount to socialized medicine?  For the most part, they all said it did. There was a bit of discussion as to the difference between being forced to pay taxes or "contributing" voluntarily, but the general consensus was, in the words of an attorney friend, "If you're having others pay your bills, you've just become a socialist." 

That all being said, there is another option, and that is to shift the burden to an insurance company. With an affordable supplemental plan, such as a Hospital Indemnity plan, these out-of-pocket costs can be reduced dramatically. These plans pay you, not the doctor or the hospital, and can be used at your discretion. Many are available through work, via payroll deduction, and have saved many a family from financial ruin. 

Don't rely on the kindness of others to cover your bills. I've attended too many fish fries and other fundraisers when there's a need, but it could all be avoided by having proper insurance in place to begin with. If you have a question or would like to start the application process, go to our site and book a phone appointment. We'll be happy to assist you. And as always, stay healthy and safe.

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. 

Professionalism In Life Insurance

Selling insurance is a highly regulated affair. Agents have to go through a series of exams and ongoing training in many areas, such as our duties and responsibilities as fiduciaries. In my home state of South Carolina, for example, we are required to have a portion of our continuing education courses include an ethics class.

All of this revolves around the professionalism of agents selling life and disability insurance, as well as other types of coverage, such as cancer plans, Medicare supplements and more. When talking to clients, agents have to discern to the best of their ability, what is in the interest of the client. That means asking a lot of questions and learning what the client's needs and budget are. 

I have had people get mad at me as I questioned them on their debt, income, family dynamics and work life. It is a process we in the business call "fact finding", but it can be intrusive to some. At the end of the process I usually ask for some feedback like, "How do feel about the conversation we just had?" I get all kinds of responses, from "uncomfortable" to "good". But the most common remark I hear back is, "You made me think of things I hadn't considered before." 

Getting people out of their comfort zone is part of being an effective life insurance agent. But the key is to do it professionally and tactfully. I have witnessed agents berating clients and squirmed as they made comments like,"What were you thinking when you took on all that debt?" or "Why would you want such a small policy?" Not good.

One of the reasons it is legislated to take continuing education courses is because of these kinds of actions. On many occasions I have wanted to scream at someone for making a bad financial decision, but I don't. Clients usually are aware of their own bad choices and giving them a hard time about it doesn't make me a good agent. Instead, I try to bring up the subject and think of ways "we" can resolve it. 

Another part of this discussion is how we deal with our senior clients. As mentioned earlier, many agents work in the Medicare market, which also can lead to sales in final expense life insurance and products dealing with chronic illness, like Long Term Care and our newer Short Term Home Health Care policies. I have colleagues who love to work in the "senior market" and are very good at it. They are patient and very low-key, which is how it should be done. Many times they'll ask the client if there are any adult children who need to be involved in the process and invite them to participate in the discussions. Again, it is all about ethics and doing the right thing. This is also a great way to build trust and earn referrals.

I, on the other hand, prefer to work with business owners and self-employed individuals. Nothing against seniors, but as an entrepreneur, I appreciate that these people typically have no benefits through work and have to cobble together a "package" to protect themselves and their families. Again, I have a duty to find out what their pain points are and find the best way to help. 

One thing that can get people off track is the word "commission". Yes, I work on commission, as do countless others in the insurance industry, but that doesn't make us all sinister and greedy. Are there a few bad apples? Of course, but as I've stated in earlier posts, those agents usually don't last long in the business. As the president of Surf Financial Brokers, I am always on the lookout for good agents, but I usually will only take on an agent who has been in the industry for at least two years. It's not a very scientific approach but it let's me know that the agent will probably stick around for the right reasons.

If you need help with your life or disability insurance, please let us know. You can book a phone appointment here. And as always, stay healthy. 

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

Things You Probably Didn't Know About LIfe Insurance

Most of us know the basics when it comes to life insurance. We know, for example, that you pay a premium, and when you die, the insurance company pays your beneficiary. That's about as basic as it gets. But there is a lot of other information you can use when deciding how much you need, what fits into your budget and other considerations. 

Did you know that, according to Policy Genius, only 54% of adults even have life insurance? And 27% only have group coverage through their work, and sometimes that isn't portable, which means you can't take it with you if you leave your job. Generally, we as a society, just don't have enough life insurance. 

I met a nice lady recently who became a widow unexpectedly a year ago. Her husband was killed in an accident and she was left with three kids, his car payment, a mortgage and no life insurance to help pay for the funeral, much less the other bills . Luckily for her, she has a job that helps her "manage", but it's clearly not enough. Now she is considering getting a policy on herself because she understands how much of her stress could have been avoided.

One of the most prolific sales people in the history of the life insurance industry was Ben Feldman. When asked how he was able to sell so much of an intangible product he responded, "I do not sell life insurance. I sell money." When you think about it, that is exactly what life insurance is. You are buying money for the future, not for yourself, but for your loved ones at the time when they need it most.

Mr. Feldman was the epitome of a salesman who could find a great way to describe his product. While everyone else was talking about the features of life insurance, he was telling his prospective clients about the benefits. Like they say, "sell the sizzle, not the steak". 

But people still are put off at the prospect of buying an intangible product they can't use. Or can they?

If you have read some of my recent blog posts, you will remember that life insurance can be used for several things while you are still living. We offer policies that can be used for expenses associated with being chronically ill, for critical illnesses like heart attacks and strokes, or for a retirement supplement. You can even use the money for helping fund your child's higher education costs. 

Products have evolved since the days of Ben Feldman and keeping up with many of the changes and new policy features can be too much for the average person who just wants to make sure their family can stay in their home if they die too soon. That's where my job is important. I rely on my carriers to keep me up to date on changes and new lines that may be a great fit for a client. 

Another great resource we use is our network of agents. Like medicine, one can "specialize" in a certain type of insurance, and we use that to our advantage. If I have a client who needs information on a policy that has been offered through their work, and I'm not familiar with it, I can pick up the phone and ask someone who may have the information I need. That gives Surf Financial a strong advantage when it comes to how we can help a client. 

Let us help you keep your family financially secure, and as always, stay healthy.

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

4 Ways We Are Making Buying Insurance Easier

Buying insurance has always been a hassle for most people. I am fully aware that of the stereotype of the high pressure insurance salesman, pushing the client to spend more "for the family's sake". Life insurance agents are painted as cheesy villains, much like used car sales people. I remember commercials on TV that would mention "no salesman will call on you", which implied that you could get a policy without that horrible person coming to your home.

As an agent who has been in the business for years, I can attest that there are a few bad apples in the business. However, those people generally don't last long. Not working in the interest of the client (and only for a commission) eventually weeds them out. And the vast majority of us are generally doing what we think is in the client's interest. 

With all of that said, and against a backdrop of Covid-19, we at Surf Financial Brokers have taken measures to make purchasing life or disability insurance as easy as possible for you. Here are a few ways we have done this:

1. Our quoting engine in the top right corner of the page. Even though this is from just one of our carriers, it gives you a ballpark of what a policy may cost. You know your budget better than we do. Find out what you can afford and work from there. Whether you are seriously considering purchasing a life or disability policy, or just "kicking the tires", you can figure it out without an agent looking over your shoulder. 
2. Our scheduling calendar. Rather than trade emails back and forth to determine a time to discuss your insurance needs, you can now see what times we have available and schedule a time that works for you. We'll give you a call to discuss your needs and go from there. Our calls rarely last more than 30 minutes. 
3. Phone applications. As mentioned in an earlier post, we can take your application over the phone in most instances. Some of our carriers prefer to do a "drop ticket", in which we get your basic information and they have an underwriter take the rest of your information directly. Either way, you can be in the comfort of your own home or office without having to travel to an insurance office. 
4. Contactless delivery. Several of our insurance companies have now made necessary changes to get you your policy without having an agent have to be there to get signatures. 

One of the few good things the pandemic has brought about was much needed change to an industry that sorely needed it. And to honest, it's made our work easier too. Speaking for myself, I can now spend less time prospecting and more time helping the clients we have. As a result, our clients know that we will be available if needed. That gives them peace of mind knowing that their families' financial security is taken care of, and not wondering if the agent who sold them a policy is still in the business.

We realize that you can get a life or disability policy (we also offer a full line of ancillary products) anywhere, but we hope that by making these minor changes you will decide to give us an opportunity to help you secure your family's needs. 

And as always, stay healthy.

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

The "Why" of Insurance Sales

Last week I was listening to an life insurance selling podcast (yes, I'm a nerd) and the topic was on why people get into selling insurance and the motivation to stay in the business. In other words, if someone were to ask me why I sold insurance, what would my response be?

Naturally, the correct answer was that agents want to help people protect their families' financial security. They gave examples of handing claims checks to grieving widows who asked, "Am I going to be okay?" while small children played in the background. Knowing that this family could stay in their home while making a commission was their calling and these agents felt like they had accomplished something when they convinced the client to buy a policy.

On the other hand, agents who were in the business just for the money were the ones who never lasted long. Their intentions were short-sighted and self-centered. I began to ask myself questions. Was this me? Am I making this all about me? Am I a bad person?

I thought back to 1985 when I first got into the insurance business. At 23 years old I really didn't know what to do with my business degree from North Carolina State University. No one was beating down my door asking me to come work for them and my savings was starting to shrivel, so I answered a classified ad in the local newspaper. "Make $20k a year, no experience necessary". 

Not being jaded enough at the time, I believed everything that the recruiter said. The great pay and working for a top-notch company was going to be the answer to all of my dreams. Looking back though, he never mentioned anything about helping families out when their time of need came. And the accident plan we sold paid a whopping $37.50 each day someone was confined to the hospital. The plan was a loser and my co-workers and I probably knew it. 

I left that job and moved on. Eventually I worked for companies that I had actually heard of. Some of those companies had training programs and from time to time I would hear the old "why are you selling insurance" question posed again. 

My position had changed though. Now I had become a student of the game. I did enjoy helping families and the proof was in my first claim check delivery. The carrier I was working with would ask us to deliver smaller claims (under $10,000) in person. This was to accomplish two things: 1) We could express our sympathies in person for the loss of a loved one and 2) to get referrals. In regard to the latter, I could usually get a few names after handing someone a check for a few thousand dollars, so that was easy. 

My first claim check delivery was too an elderly gentleman in a small town. At first I thought he was the deceased and was a bit confused. The house was old and there was a wooden wheelchair ramp which had seen better days. When the gentleman came to the door he acknowledged who he was and clarified that his son had been the one that died. He told me how his son, a truck driver, had been found dead in the cab of his semi, which was now parked in front of the house. Apparently a heart attack was the cause.

At that moment I realized that this man was in emotional pain and I was doing something good by bringing him this check. He beamed as he mentioned that this was the first good news he had received in a while. On top of it all, I learned that I was his first visitor in a few days as well, and since he was wheelchair bound, he didn't get out much. We talked for over an hour as he told me about his son and his own career. I found my "why". That short amount of time with him had brightened his day as well as my own. 

Over the years my "why" changed for the better. Over the years I've delivered several checks (most companies mail them out nowadays) but I still think back to that gentleman who helped me understand that my real job isn't selling a policy, but convincing someone to let me help them secure their finances at a time of loss and sadness. 

If you need help finding a policy for you or your loved ones, let us know. You can book an appointment on our calendar and we'll help you over the phone. And as always, 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.