Wishing All a Merry Christmas!

Christmas is the time of year we think of loved ones.  For most of us, having our family with us as we celebrate the holidays is all we ultimately ask for.  Unfortunately many people will be spending the holidays this year without that special loved one or family member.  If you know of such a person, reach out and take a little extra time to talk and spend time with them.

We at Surf Financial Brokers want to wish you and yours a very Merry Christmas and a safe, prosperous and Happy New Year!  

How Much Life Insurance Do You Need?

It didn't take long for me to realize that when it comes to helping people with their life insurance needs, no two people are the same.  Regardless of what Suze Orman or Dave Ramsey may say, not everyone should purchase term life insurance, even though it does serve a great purpose.

One should take a holistic approach to all of their financial planning and identify what their needs are.  Questions you should ask yourself are:  Is insurance offered at work?  What does a funeral cost?  What are the costs associated with death?  Do I want to fund my kids' education should I die too soon or pay off the mortgage so I don't leave my loved ones with debt?

A simple way to take care of these things is to use a life insurance calculator.  This valuable tool can help you figure out what you need.  If you have a life insurance policy in place, you can deduct that amount from the total and supplement the rest.  

Give us a call or visit our site and we can help you find a plan in your budget.

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!

Return of the Return of Premium (or How to Get Your Money Back If You Don't Die)

Every once in a while I'll be talking with a client about life insurance and the client will say something to the effect of "If I don't die, do I get my money back?"  Typically, I respond with "If you don't get in an automobile accident, do you ask your car insurance company for a refund?"  Most of the time, I get a funny look.

Now I can give a different response.

One of our favorite insurance carriers has brought back the "Return of Premium" rider for their life insurance policies and it works like this:  If you outlive your policy, you can have your money back.  Pretty simple. 

In the name of full disclosure, this rider can nearly double the premium.  But some folks will still want it and those who do consider it to be a savings plan.

These policies can be written as 20 or 30 year terms for up to $250,000.

What would you do with all that money?  Pay off business loans?  Annuitize it for an income stream?  It's your choice! 

What Do You Think Life Insurance Costs?

According to a recent survey by LIMRA and Life Happens, cost is the reason most Americans give for not owning life insurance.  However, 80% of Americans misjudge what the premiums are.  In fact, millennials overestimate the cost by 213% and Gen X'ers by 119%!

Think to yourself "How much is in my budget to make sure my loved ones are taken care of?"  How much are you willing to spend to secure your family's finances?  $20 a month?  $50?  $100?

This is where we make it easy for you.  Simply go to our website at SurfFinancialBrokers.com and find a policy that fits in your budget.  Our quick and easy quoting system will show you policies with all of the major carriers.  There's a good chance you will find a great policy in your price range.  Simply click on "Request Application", answer a few questions and one of our representatives will contact you within one business day.

At Surf Financial Brokers, it's No Pressure Insurance!

A Life Insurance Agent's Second Biggest Problem

Let's face it, no one really wants to buy life insurance.  I'd rather buy a car or a new smart television or a cool phone or a trip to Hawaii.  Wanting something is great, but is it a priority?

The second biggest problem life insurance agents have is telling a client something they already know, which is that their priorities are all mixed up and taking care of their family in the event of an untimely death should be at the top of the list.  If I died tomorrow, a car or TV or phone or a trip won't insulate my family from debt and loss of income.

So the next time you talk with your life insurance agent (hopefully us), know ahead of time that we are looking out for your family's interest, not your short-term purchases.

And in case you were wondering, the number one biggest problem is getting a client.  If you know of anyone that could use life insurance (newlyweds, new parents, just bought a home), let them know about us and our 30-second life insurance quotes, which can be found here.

Insurance For Your Life Insurance

There's currently a television commercial that mentions how a family depends on the income of the husband (or it could be the wife, mom, etc).  The question they ask is "How would your family make it without your paycheck?"

At first glance I thought they were talking about disability insurance since that truly is insurance for your paycheck.  However, this was an advertisement for life insurance.  And it is true that your family depends on your paycheck and would be in big financial trouble if you suddenly died.

But what if you didn't die?  What if you survived and you were disabled? The truth is that this could be an even worse situation for your family.  Not only would you not be able to work, but you may need a caretaker.  Like a client once told me, "If I'm dead I'm out of the picture, but if I'm disabled, I still have to eat."

And the last thing you need at that point is not being able to afford your life insurance.  Which is why we at Surf Financial Brokers stress the importance of an optional Waiver of Premium (WP).  The WP rider pays your life insurance premiums for you in the event that you are disabled and can no longer work.  Insurance on your insurance for a small additional charge.

You Can Figure Out Life Insurance

Many times when meeting with a client, I'll hear, "I don't understand anything about life insurance so I'm going to have to trust you with this." 

Even though I greatly appreciate the client's trust, I still take the time to explain in easy-to-understand terms all the different types of life insurance and what they do that sets them apart from one another.  Let's do this quickly and you'll understand (in general terms) life insurance in a few minutes.

First, there are 2 main types of life insurance:  Term and permanent.  

Term life insurance is just a death benefit for a certain amount of time (10, 20, 30 years) that you decide upon when purchasing.  That's all it does.  No cash value, no borrowing against it, nothing. Term life insurance is very reasonably priced. 

Permanent life insurance is where things get a little tricky because there are differing kinds of permanent coverages.  The idea is that they all have the potential to build cash value.  How they do that is the difference.

Whole life - Very safe, very slow growth, most expensive to purchase later in life.

Universal life (traditional) - Growth based on interest rates.  Less expensive than whole life but don't expect a lot of growth in a low-interest environment.

Variable universal life - Growth based on investment accounts.  Premiums are comparable to traditional universal life but can lose money.  Can only be purchased by a securities licensed agent.

Indexed universal life - Growth based on an index that reflects the market.  Can be a steady and quick grower of cash value with a floor (minimum) and a cap (maximum).  

That wasn't too hard to understand was it?  The key to it all is that you have enough coverage to help your family if you were to die too soon and to make it affordable.  If you have any questions, give us a call or look us up at Surf Financial Brokers.  

How You Can Plan For Long Term Care Costs

What are the images that come to mind when you think of Long Term Care (LTC)?  For most people, it's not something they want consider for themselves or a loved one.

There are two types of burdens when a family member is in a LTC situation:  financial and emotional.  We can't help you with the latter, but we can help you plan for the financial part.

Of course, there are LTC policies out there and they can be pricey.  The insurance industry has recently starting developing life insurance plans which can be used for LTC expenses as well.  Again, they can be a bit pricey.  What's the alternative?

One product we've come across is a Disability Income policy with rider that can help cover LTC costs.  And the good news is that the rider is very affordable.  When you consider that you need a disability policy anyway, why not cover some, or all, of your LTC needs while you can?

Give us a call or look us up on the web and let us help you.

Don't Get Overwhelmed With This Stuff

Occasionally someone will tell me that they just don't understand the differences between term, permanent, whole life, universal or indexed life insurance.  Throw in annuities, disability insurance, and other financial products being sold out there and even us agents get confused.

As I have mentioned before, there are hundreds, if not thousands, of products from over 1100 companies.  My philosophy is that every one of those products has a need somewhere, but for the vast majority of our clients, simple is better.

We want our clients to be as comfortable with a financial product as possible.  Whether we are discussing the benefits of a life policy or the fees in a retirement plan, there should be no confusion.

And if someone tells you that a products has "no fees", that implies that the financial institution isn't making any money.  Of course, that isn't the case either.

If you have questions about a product, give us a call or drop us a line on our website.

That Time of Year Again

It's tax season and it isn't too late to make some last minute deductions and try to keep as much of your hard earned money as you can.  Here are a few pointers that may help you this year, as well as a few that will save you money next year as well.

1.  You have until April 15 to make contributions to your IRA or other tax-qualified retirement plan. Remember that you can deduct contributions to a traditional IRA, but not a Roth.  

2.  Keeping your refund closer to zero is better than getting back a large refund.  If you are getting back a lot of money, remember that you loaned that money to the government free of charge and they are just paying it back.  

3.  If you are a business owner, self-employed or an independent contractor, you should seriously consider a SEP-IRA or a Simple IRA.  The contribution limits are much higher and can save you money on your business' tax bill.  

4.  Make a habit of keeping track of all of your deductions throughout the year.  This will save you a lot of time.

5.  A tax preparation company can be expensive.  If you have 1 employer and you don't itemize, an EZ form can be done on your own.  On the other hand, if  you have questions throughout the year, maybe an accountant is worth the money.  

The question we ask our clients is this:  How efficiently does the government spend your money and can you do better?