What Is Final Expense Insurance?

We've all seen the commercials on TV with Alex Trebek telling senior citizens that they can cover the cost of a funeral with a life insurance policy.  But what kind of insurance is it and how much will it cost?

Usually, final expense coverage is a whole life policy, which is the most expensive type of life insurance because it builds some cash value.  But do you really care about building cash value to pay for a funeral?  Probably not.  The main concern is covering the cost of a funeral  while making sure your premium doesn't increase.

In the case of our friend, Mr. Trebek, he says that you can't be turned down.  That's a good thing if you are in poor health, but being "guaranteed issue" also means that the additional risk to the company is being passed on in the cost.  Generally speaking, "guaranteed issue" costs more.

If you are in good health, there is a better and more affordable alternative.  Guaranteed Universal Life (GUL) typically runs about a third less and the rate is also guaranteed to never go up as long as you pay your premiums.  The GUL may ask for a paramed exam to qualify buy this lowers the carrier's risk, which in turn lowers your price. 

If you're looking for a way to cover the expenses of a funeral, let us help.  Contact Surf Financial Brokers for information. 

Time To Insure Your Love Again

February is when the life insurance industry wants you to "insure your love".  Using the month of Valentine's Day for promotion may sound cheesy but doesn't this get to the matter of what life insurance is all about?

When you really get down to it, life insurance isn't for the person who is covered, but to pay a benefit to those loved ones (spouse, kids) who will need that money in the event that you die too soon, to help pay for everything like usual living expenses to college funding.  And if you love your family, you'll make sure that after you are gone they can keep moving forward with their lives.

So give us a call and let us help you insure you and your loved ones this month.  And check out our website at www.SurfFinancialBrokers.com or look us up on Facebook. 

Does Medicare Cover Dental Services?

Did you know that Medicare will not cover dental care that you need primarily for the health of your teeth? For example, Medicare will not cover routine checkups, cleanings, or pay for you to get fillings. Medicare will never pay for dentures. Even if Medicare has paid for you to have teeth pulled (extracted) as preparation for a medical procedure, Medicare will not cover the cost of implants or dentures (complete or partial/bridge); you will be responsible for the full cost.

With this in mind, we at Surf Financial Brokers offer a dental plan online for our friends in South Carolina.

• Choose any provider you wish
• No health questions
• Great customer service

And you can choose from simple dental only plans to comprehensive dental protection with added vision and hearing benefits, and that's something to smile about!  

To get a quote and apply, click here! 

September is Lfe Insurance Awareness Monthi

Now that we're halfway through September, it's about time we mention Life Insurance Awareness Month (LIAM).  The purpose of promoting LIAM is to make the public aware that life insurance has a purpose and why we all need to have coverage.

For people who are married and/or have children, here are a few reasons to get some coverage.

1.  Pay off your debt.  Whether you're the bread winner or not, debt can smother the surviving family members.  This includes paying off the mortgage, credit cards, car loans and any other loans you have out there. 

2.  Replacing your income.  You contribute some or all of the money that pay the bills and those bills won't stop coming.  Utilities, taxes and everyday expenses still have to be paid.  Your survivors will still have to replace the refrigerator and make car repairs after you're gone.

3. Education costs.  Wouldn't it be great if your kids didn't have to worry about paying for college?  With enough life insurance, they won't.

4.  Final expenses.  How much is a funeral?  The average is around $12,000.  Yes, we've heard how much you can save by cremation, and that's great, but it's not for everyone.  Figure this into your burial plans.

4.1  Costs associated with death.  Odds are good that right before you die, you'll be in a hospital or have some other medical treatments.  Even if you're just throwing in the cost of your deductible, make sure your loved ones are blindsided by this number.

When you figure up the total of these numbers you'll probably be amazed at how high the total is.  No worries though, because most of this can be taken care of with affordable term coverage.  However,  we recommend that you use a Guaranteed Universal Life policy for the last two items.  (Whole life is expensive and you really don't need to worry about building cash value here)

For more information, let us at Surf Financial Brokers help.

You Don't Have To Be Famous To Screw Up Your Estate

Did you know that Prince didn't have a will at the time of his death?  Now a judge is having to distribute the musician's $300 million estate to his 6 siblings. 

James Gandolfini was worth $70 million when he died in 2013, but because he didn't finish his planning, his estate paid approximately 55% taxes.  That's hefty!

Florence Griffith Joyner (FloJo) had a will, but failed to let anyone know where it was.  It took a probate court 4 years to close out her estate.

These are just a few examples of how famous people with lots of money and resources still managed to screw up their estates.  For the rest of us, there are plenty of resources and information.  Here are a few.

1.  Your accountant knows more about your financial situation than anyone.  Let this professional help you.  The less the government gets in taxes, the more in the pockets of your heirs.

2.  Your attorney should be able to let you know if you need a trust (for tax avoidance purposes) or not.  Keep in mind that estate planning attorneys are usually not the same person you use to get you out of a speeding ticket. 

3.  Your life insurance agent can plan for where insurance proceeds go after your death.  Remember that most death benefits are tax-free.  As an attorney friend of mine says, "A contract trumps a will, and a life insurance policy is a contract." 

If you have questions about planning, let us know at Surf Financial Brokers.

Why Small Business Owners Need a Buy-Sell Agrement

What happens when a partner in a business dies?  How does this impact the surviving partner?

Let's create a scenario.  Bill and Mary open a business and own it 50/50.  The business is doing well.  But one evening on his way home to his family, a truck crosses the center line and hits Bill head on.  Bill dies.

After Bill's funeral, Mary realizes that she's now in business with her new partner, Bill's widow, Susan.  Susan knows nothing about the business but insists that she can "get to know how things work".  Mary needs to get back to running the business, not teach Susan, who has been a stay-at-home mom for the last 10 years, the workings of her company.

A few months pass and Mary is doing all the work, with the interruptions and input from Stanley, Susan's new boyfriend.  Stanley likes to come around and let his friends know that he's running a business now.  Mary is confused and angry. 

All of this could have been avoided if Bill and Mary had completed a buy-sell agreement and funded it with life insurance.  In a nutshell, the agreement would state that if one partner died, the other would have life insurance proceeds to buy the deceased partner's share of the business. 

Mary could have given Susan enough money to pay for Bill's share.  If properly structured, Susan could pay off her house and Mary could keep the business going without the interference of others who have no knowledge of the company's goals or values. 

If you have a business partner, have you considered what would happen if one of you died?  We can help you with a buy-sell agreement and keeping it funded with life insurance. 

The Agents' Problems With Health #Insurance

As we all know, health insurance changed dramatically in this country several years ago with the ACA or Obamacare rules.  Instead of individual policies with various deductibles, companies were forced to offer policies with "essential health benefits" or ESB's, which meant that all policies had to offer certain coverages.  This, as well as forcing carriers to cover people with pre-existing conditions, drove rates through the roof.

But how did it all affect your health insurance agent?  

First, the law mandated that 70% of premiums had to go toward claims.  This left 30% to go toward administrative costs, overhead, salaries and, yes, commissions.  Those commissions shriveled up like a Sunsweet raisin.  I don't sell based on commission only, however, this is my job, not a hobby.  I need to make a living as well.  Obamacare created several new outlets for people to get their coverage, including a website, an 800 number and navigators, which are non-insurance licensed enrollers.  People don't need an agent.

Secondly, we have a short window of time, the open enrollment period, to enroll you.  Outside of that time period, we can enroll if you have a special situation, ie you lost coverage through your job or you got married.  But the companies have decided NOT to pay commissions on those sales.  Again, it's not a hobby.

Finally, the agents we talk to are generally disgusted with the whole process and don't want to keep investing their time and energy getting certified each year while not knowing if our politicians are going to repeal, replace, tweak, fund or defund the system.  

With all of this in mind, we at Surf Financial Brokers have made the decision to stop offering health insurance until conditions get much better.  However, we are taking the time to make sure we offer the best options when it comes to Medicare Supplements, life insurance and group benefits (minus health) for our clients.  

Please let us know if we can assist you!