Can I Get A Term Life Insurance Quote?

We all know that life insurance is essential to every family's financial plan. Making sure your loved ones can stay in their home and continue to be financially stable gives one peace of mind. As a matter of fact, many of my clients have told me that they worry about what could happen to their family if the breadwinner of the family should die unexpectedly. Like many life insurance agents, I use this as the "what keeps you up at night?" conversation. 

Term life is affordable and is great to cover you during your "working years". That's usually the time when your family is growing, you are still paying off a mortgage and your kids will be going off to further their educations. A term life policy lets you determine the length of the term, whether it is 10, 20 or 30 years, or even longer depending on your age.

One of the problems we face in our everyday lives is that we just don't have the time to meet with an insurance agent to discuss our finances. There are too many other things going on in our lives that let us keep putting insurance off. There has to be a more convenient way to look for life insurance. 

What if you could look for an affordable term life policy when it is convenient for you? And what if you could just answer a few health questions and not have to bother with a nurse coming to your home or office to conduct an exam? With Covid still with us that is a concern! 

A few reasons you need to consider term life are:

• No exam needed* for most policies.
• You select the amount needed. 
• A Conversion Option that lets you change your policy to a permanent plan without health questions.
• A Return of Premium rider (optional) that offers the best of both worlds - life insurance protection if you need it and money back if you don't!

You can also cover a spouse or other additional insured, as well as cover your children.  The best part is that you can keep it within your budget!

To make it easy and convenient for you, we have made the link** available on our website, but in the meantime, you can click here to run your own quote. Have the quote emailed to you and one of our agents will be available for any questions you may have. 

Many of our clients in North Carolina, South Carolina, Virginia and Tennessee have taken advantage of how easy and simple it can be to run their own life insurance quote. No matter if you are in Knoxville, Nashville, Raleigh or Richmond, we can help you out. 

Being a virtual agency has also given our clients a peace of mind during the pandemic. By helping you right over the phone, you don't have to be concerned about your safety during these times. 

We know you money is tight these days and everyone is working on a slim budget. But we also know that if something were to happen to you or a family member, your families finances could be in turmoil. Take the financial burden off of your loved ones by looking into a term life insurance policy. The first step to financial security is getting a quote. 

We look forward to helping you and in the meantime, stay healthy!

*Up to $250,000

**The same link will help you run a quote for whole life and disability insurance. 

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!  

Can I Get A Quote For Cancer Insurance?

First off, I hope everyone had a great Christmas! It's definitely been a tough year for everyone and as we move toward 2021 my wish is for all to be healthy and happy.

And speaking of healthy, we are currently enduring one of the deadliest pandemics in recent history. The cacophony of news coverage regarding Covid-19 is nearly drowning out the other health issues we face, including cancer. Unfortunately, there were some celebrities we lost this year due to cancer, including Chadwick Boseman, Eddie Van Halen and Alex Trebek. It seems as if the only times we are made aware that cancer is still with us is when we hear that famous people die from it.

As a vaccine for Covid-19 becomes more widely available, our population will still need to stave off cancer and be prepared for treating it. Statistically, 1 out of every 2 men and 1 out of every 3 women will face some sort of cancer in their lifetime*. While the medical side of the treatment has made great gains, the financial strains it puts on families is still enormous. 

This is where a cancer insurance plan can be a great fit for you. First and foremost, these plans are affordable. A few dollars each month can cover an individual with or without a spouse, as well as children. For those people who are concerned that cancer runs in their family, that is important. 

Also important is what a cancer plan can cover. Out-of-pocket expenses related to cancer can be exorbitant. For example, medical insurance may not cover the cost of experimental treatments or some medications. It most certainly does not cover the cost of travel or lodging if someone is receiving treatments in a hospital not located in their own town. All of these items add up. Not being able to work and losing income only makes the situation worse. 

Of course the financial stress on a family as a result of a cancer diagnosis is not the priority at the time. The main goal is to be cancer free and survive. But alleviating the money problems as they happen can be fruitful after treatments end and relieve stress. 

So what can one do to make sure they (or their loved ones) don't have to face the harsh reality of financial insecurity of a cancer diagnosis? The first step is to find a cancer insurance plan that meets their needs and fits in a budget. 

When discussing needs, there are several questions to be answered. 

• Are you trying to cover yourself, you and a spouse, or the entire family?
• Would you like your policy to pay a lump sum of money all at once or would you like to receive your benefits as you are undergoing treatments?
• Does the plan offer optional riders which can increase or decrease my premium?

This is why we are in the process of adding a cancer insurance quoting tool to our website. It gives you an opportunity to see how a "treatment option" plan works, along with the benefits and optional riders. From there, you can click on the "Get Quote" button and enter the information needed. If you like what you see you can even proceed to beginning the process of applying. On the whole, the process can take about 10 minutes. 

Of course, if you have questions about any of this, we are available to help. In the meantime, please stay healthy!

*American Cancer Society

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! 

Christmas Wishes

I think we can all agree that 2020 has been a bad year. For me personally it began with my father being hospitalized, followed by my own hospital stay (pancreatitis) and then the subsequent passing of my father. A month later, things started to shut down due to the Covid-19 pandemic. 

Millions of people around the world, and hundreds of thousands here in America, have been infected by the illness. Businesses and financial institutions have suffered, forcing the layoffs, furloughs and terminations of millions of jobs. What we thought was going to be a "V-shaped" recovery in the spring has become a deep financial recession.

As we go through this ordeal there is still hope. Vaccines are now becoming available and my gut tells me that by spring of 2021 we'll start to see the light at the end of the tunnel. It won't be a quick recovery, but more like a aircraft carrier trying to make a U-turn. Slow but steady advances. 

I also think that once things get back to normal (whatever that is) we will still have challenges. There will be some changes in the way we do things, like conducting business. The pandemic has created more "virtual" opportunities for businesses. As I've mentioned previously, we were in the process of starting to change months before the virus, but had to expedite things when we realized that traditional networking and sales processes were going to be disrupted. 

With all of this in mind, I have made a list of Christmas wishes for Santa to take a look at. Here it is. 

1. End the pandemic. The health and welfare of not just the USA but all countries needs to get back to a good place. Not being able to see loved ones, especially those who are already sick or in a facility, is heartbreaking. And it's taking a toll on the healthcare providers too.
2. Political calm. Our country is severely divided and I honestly don't think it is sustainable. Maybe we need something (not a war) to unify us again. A return to civility would be nice too. In the old days people would say, "I don't agree with you but I'll defend your right to your opinion." People don't say that anymore. It's just, "We're right and you're wrong." That needs to change.
3. More business opportunities. This is both on a micro and macro level. Of course, I want you all to go to my website and noodle around for life insurance and disability insurance quotes. And booking an appointment to talk to me about your insurance needs would be awesome too. But I also want everyone to get back to making money, supporting their families and feeling less stressful about their finances. 

There are a few good things to come out of all of this. Our new appreciation for those frontline workers and caregivers in medical centers and hospitals comes to mind. We learned that we can be very flexible when it comes to ways to do business, from conference calls to no-contact food delivery. We also found out how fragile our economy really is, with people from all backgrounds lined up for food distributions. Perhaps our leaders will consider this in the future. And the residual effects of this will still be with us for years to come.

As we end 2020, let's also remember those who didn't make it as well as those who are still fighting the good fight. Keep your head up and I hope you all have a Merry Christmas and a safe and healthy New Year!

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! 

Have Life Insurance? You May Need More

You probably need life insurance if others are depending on you. If the only coverage you have is through your job, though, you may not have enough.

Fortunately, buying life insurance has gotten easier in some ways during the pandemic. Plus, coverage may be cheaper than you think.

The rising COVID-19 death toll has led more people to at least think about their life insurance needs, and many have taken action. One in  four Americans who have life insurance say they purchased or increased their coverage because of COVID-19, according to a NerdWallet survey conducted Oct. 29 to Nov. 2 by The Harris Poll. Many of those who purchased or increased their coverage were motivated by fear of being diagnosed with the disease (30%) or knowing someone who had (29%).

A survey by insurance industry trade group LIMRA this summer found nearly 6 in 10 Americans (58%) say they have a heightened awareness about the importance of life insurance, and about 3 out of 10 (32%) who were shopping for life insurance said it was in response to COVID-19. The number of term policies, the most popular type of life insurance, rose 10% in the third quarter compared with a year earlier, LIMRA found. That was the largest increase in 18 years.

“Obviously, the pandemic is making people much more sensitive to their mortality,” says Alison Salka, LIMRA research director. “So we see more people aware of the need for life insurance.”

This is very similar to the months after 9/11 when people realized they could die sooner or unexpectedly.  

Still, LIMRA has estimated that 30 million American households don’t have coverage, and another 30 million don’t have enough. The average coverage gap between what people have and what they need is about $200,000, LIMRA says.

People think that if they have life insurance through their job it is more than enough, but they haven't really crunched the numbers to see how much their family will need if they die prematurely.

Employer-provided life insurance policies are typically capped at certain dollar amounts, such as $20,000 or $50,000, or limit coverage to one to two times an employee’s annual pay. That may seem like a lot, but parents with young children may need 10 times their salary or more to replace their incomes until the kids are grown.

Even if your need is more modest — your partner requires your income to pay the mortgage, for example — an employer-provided policy might fall short. Plus, you typically lose your coverage if you lose your job, as many Americans have during the pandemic.

Having your own policy means your beneficiaries will remain protected. And thanks in part to the pandemic, you may be able to get coverage faster and without a medical exam (no needles!).

Increasingly, insurers are automating and accelerating the application process, LIMRA’s Salka says. Instead of sending someone to your home to check vital signs and collect blood and urine specimens, some insurers are waiving exams or are exclusively using exam and lab data provided by the applicant’s physician. This trend was already underway, but social distancing and other pandemic challenges mean more insurers are adopting these practices.

Life insurance is often cheaper than people expect. A 30-year-old woman in excellent health might pay $193 a year for 20-year term policy for $500,000. A 40-year-old man, also in excellent health, might pay $341 for the same coverage.

Term insurance covers people for a specified period of time, which is typically 10, 20 or 30 years. (In a previous post we mentioned there are now terms up to 40 and 45 years) Term policies are significantly less expensive than permanent life insurance, which has additional features such as a cash value that can be borrowed against and that grows over time.

But the higher costs of permanent policies can tempt some buyers to skimp on coverage. If you do need life insurance — and you probably do if someone would be financially impacted by your death  — then your priority should be getting enough.

How much do you need? We usually consider things like:

• Final expense and other costs associated with death. For instance, if you were in the hospital before passing away.
• Debt. Items like the balance on your mortgage, credit cards and car loans. 
• Education costs if you have kids and want to take care of  your education. 
• Income replacement. Your family will still have day-to-day bills to take care of, like car repairs or needing a new stove. 

If you have need any help or have questions drop us a note or book a phone appointment. And in the meantime, please stay healthy!

 

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

Why Younger People Should Invest In Life Insurance

Younger adults have always been a difficult market for life insurance agents. They typically feel they are indestructible and will live forever. On top of that is the feeling that life insurance is unnecessary because they tend to marry later in life and don't have the responsibility of family. Nothing could be farther from the truth though.

Our young adults are missing one vital piece of information that could really work in their favor and that is they could be leveraging their good health and young age. Just because they don't think they have a need for life insurance now doesn't mean that they won't need it in a few years. 

Life insurance is cheaper for those who are younger, healthier and don't smoke. Everyone knows that. And for those who are in their 20's, taking advantage of this could really benefit them as they age. Whether they are looking for just a term policy or something that can build cash value down the road, there's a good probability that our younger people can get a great deal.

For instance, purchasing an Indexed Universal Life (IUL) policy and overfunding it from a young age offers a much better opportunity of growth than a traditional whole life policy would. These policies also include features like early withdrawal for income streams, living benefits that you can use while you're still alive, and some tax advantages. 

I often tell the story of a young attorney who really didn't care about the life insurance portion of the policy as much as he wanted a safe place to put his money and retire a bit earlier than most. The illustration I rand for him showed some great tax-free withdrawals (in the form of a loan) as well as the peace of mind knowing that if something were to happen to him his wife would be okay financially. 

That same policy for one of his colleagues who was just a couple of years older but was overweight and a smoker couldn't produce the same results. For him, the "cost of insurance" would have been taken most of the gains of the policy off the table. Again, health matters.

But let's say you don't have the income to spare like the young attorney did but you still want to lock in on a great rate for life insurance. Traditional term policies were always the way to go for coverage during your working years. The problem was that the terms usually maxed out at 30 years, leaving people uninsured (or uninsurable if their health got bad) when they needed the coverage most. 

For these people, we now have a carrier offering a 40- and 45-year term policy, which can lock in a rate to age 65 or even 70 years old. Of course, underwriting is still applicable, but it's still a great deal. These policies are aimed at the "millennial" market who are forward thinking and know that the future will be here faster than expected. 

If you are young, healthy and don't smoke (or know someone who falls into this category), use the "Get a Quote" button on the upper right of this page to see if a term policy would fit in your budget. And if you want an illustration for our IUL product, book a a phone appointment and we'll be happy to talk with you to find out what your goal is. 

In the meantime, stay healthy and let us know if we can help you secure your family's financial future.

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!

Who Needs An Accident Insurance Plan? You Do!

It sounds weird when an insurance agent talks about having a "favorite" policy, but I do prefer one of the accident insurance plans we offer over some of our other offerings. Between appointments one day a colleague asked me why I loved selling accident plans so much. 

"I like them because anyone can be in an accident, but no one has pre-existing conditions that could prevent someone from getting a policy," I said. "Plus, it can cover the client on or off the job*, so it pays on top of workers' comp or any other insurance."

Over the years I've sold hundreds of accident plans to people in all kinds of professions. Here's a small list:

• Realtors - They are in the car a lot, going into unoccupied homes, inspecting property with all kinds of perils like holes, bushes, debris, etc. 
• Other sales people - I've sold a lot of accident insurance to people who sell advertising, solar panels, cleaning systems and other wares. Again, riding in traffic is scary enough and sales people are in their vehicles for a large portion of the day.
• Cosmetologists/barbers/beauticians - Chemicals and scissors. Enough said. 
• Teachers - In a previous post I told the story about the kid on the playground who tried to make a break for it running over his teacher and breaking her arm in the process. 
• First responders - Fire fighters and police are always putting themselves in danger. 

But there are also those who aren't concerned about getting hurt at their work, but their extracurricular activities can be worrisome. 

• Amateur athletes - You can count on kids who play games and sports to get hurt from time to time. It's the nature of the game.
• Outdoor enthusiasts - From hikers to bikers to campers, if you like the outdoors there are plenty of opportunities to suffer an injury.
• Amateur gardeners - I do my own landscaping and have thrown my back out on more than one occasion. Cuts and scrapes are inevitable each Saturday morning in my yard.
• Parents - If you are active or have kids who are, these plans are very good. Sports related injuries can be covered.

In addition to the plan, there are optional riders available, like a wellness rider and a disability income (accident only) rider. The premiums are very affordable. A 50-year old couple could get the Level 2 benefits** with no riders for under $40/month (quoted on 12/14/2020). 

The policy also covers accidents resulting in:

• Accidental death
• Accidental dismemberment
• Lacerations
• 2nd and 3rd degree burns
• Broken bones
• Dislocations
• Hospital confinement
• Hospital admission
• Emergency room treatment
• Many more

Think about the last time you were in an accident, so serious that you had to seek medical attention. No one wants to have to deal with unexpected doctor co-pays and hospital deductibles, not to mention possibly having to take time off from work. But having an accident insurance plan that pays directly to you can help alleviate those bills and lost wages.  

So when you wonder why I appreciate a good accident insurance plan,  it's because if you have any kind of accident and need medical attention, the plan will be there. It's the kind of coverage that truly gives a person peace of mind, for themselves and their family.

*You can decide at the time of the application if you want the policy to cover "on the job" accidents or not.

**For a brochure describing the coverage, drop a note in the comments section with your email and we'll promptly send you a PDF.

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 Term Or Permanent Life Insurance?

Life insurance gives you a way to protect your loved ones avoid financial stress surrounding your funeral and help ease the transition to life without you.

When you’re shopping for life insurance, you have options. You can choose between multiple insurance providers. You can pick the amount you want your policy to pay out when you pass away. You’ll also need to make a decision about how long your policy will last, and that usually means choosing either term or permanent life insurance.

When it comes to term vs. permanent life insurance, what’s the difference? Which policy type is best for your situation? Hopefully this will help you understand the basics to both permanent and term life insurance policies.

What Is Term Life Insurance?

Term life insurance gives you life insurance for a set term. That means you choose a policy and a death benefit (the amount your beneficiaries will get when you pass). But you also choose a term associated with your policy.

At the end of that term (e.g., 10, 20, 30+ years), your policy is set to expire. At that time, you have options. You can let the policy expire, renew it for a new term or — assuming your insurer allows — convert it to a permanent life insurance policy. Many carriers will give you an option to convert your policy to a permanent policy during the term.

Why would you choose life insurance that will expire after a certain time? Simple: term life insurance policies are significantly cheaper than permanent life insurance policies. And, in some cases, you may feel you only need life insurance for a certain time.

For example, some people buy term insurance with a term that lasts the length of their mortgage or until their kids will be done with college. That way, your family can get through major financial milestones with or without you. Once the house is paid off and the kids are educated, you may not be as worried about leaving your partner without your income.

The amount you’ll pay for your term policy depends on a few things: your current age, the term of your policy and the size of your death benefit.

CNN Money has a helpful example to give you a ballpark idea. They say that a healthy 35-year-old male buying a 20-year term policy with a death benefit of $500,000 will pay about $430 a year. At 50, that same male will pay $1,300 annually for the same policy.

Most term life insurance policies (97%,according to the Insurance Information Institute) are level-term policies, meaning you decide a term with your insurer and your death benefit stays the same throughout the term.

But there are other types of term life policies, including yearly renewable policies and return-of-premium policies. 

Of course there are pros and cons to term life insurance. 

Pros: Less expensive, flexibility in choosing a plan that meets your needs and it's easy to understand. 

Cons: Policy expires at the end of the term, which could leave you with nothing. Also, it lacks cash value.

What is Permanent Insurance?

You can probably guess from the name: permanent life insurance is a type of life insurance that stays in effect throughout your entire life. Once you buy your policy (assuming you pay your premiums), your death benefit is guaranteed for your beneficiaries, whether you pass away in 10 years or 80.

But there’s more to the puzzle here. Most permanent life insurance policies come with a cash value component. As you pay your premiums, that money accumulates with your insurance provider. Depending on the type of policy you choose, you might get returns on that cash value in the form of dividends.

There are three different types of permanent life insurance:

• Whole life insurance: You get permanent life insurance plus a cash value component that essentially functions as a savings account. You earn dividends on your policy’s cash value component.
• Universal life insurance: With this policy, you get permanent life insurance plus a cash value component that earns interest based on money markets. You may also be able to adjust your policy’s death benefit (assuming you pass a medical exam). There are a couple of versions of Universal Life and in recent years have proven to be very suitable for many people. 
• Variable life insurance: This gives you the most flexibility — but also the most risk. You get permanent life insurance and you can invest your cash value component how you want (stocks, bonds or money market mutual funds). The issue is that if your investments don’t perform well, the losses can eat into your death benefit.

The cost of your whole life policy depends on a bunch of different things: your age, your current health, the type of permanent life insurance you choose, the amount of your death benefit, the insurer you choose — the list goes on. We’d love to give you a figure for how much you can expect to pay, but there are too many variables here.

Generally, be prepared for permanent life insurance to cost between five and 10 times more than a term life policy. For all that extra money, you get a policy that won’t expire and a potential earnings vehicle while you’re alive.

There are also pros and cons of permanent life insurance.

Pros: Policy will last for life and accrue some cash value. And if you have some medical concerns after the policy is issued, it won't affect your policy. 

Cons: More expensive, can be more complex and difficult to understand, and the cash value may disappear if the policy isn't structure correctly.

Despite what the financial "gurus" in the media profess, there is no "one size fits all" approach to this. Everyone has different issues, like medical conditions, the budgets and other financial considerations which may determine the face amount of the policy. 

A short conversation with us can help determine how much coverage is needed in your budget. Book a phone appointment to have a quick talk to determine your needs and how we can help you secure your family's financial future. In the meantime, stay healthy!

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

Are You Protecting Your Lifestyle?

Disability insurance is often misunderstood. While almost everyone gets the need for life insurance, not everyone understands the importance of having disability insurance. Insurance agents have the opportunity to help their clients understand this important coverage. 

Disability insurance protects your earning power should you become disabled and unable to work. It can help protect your lifestyle from a full or partial loss of income. As you well know, the probability of you becoming injured or disabled during your working career is much higher than your probability of dying.

The odds are about three to five times greater that you will become disabled for at least 90 days or longer than the odds are of of you dying. Disability insurance can help bridge this gap in income during a period of disability.

Disability insurance typically comes in two varieties, short-term and long-term.

Short-term disability coverage typically provides income replacement for an injury or disability that lasts anywhere from 30 days to one year. The time frame will vary based on the policy. Short-term disability coverage is a common employee benefit, some employers offer it at no charge. 

Long-term disability policies typically cover a disability that lasts three months or longer. This also includes a permanent disability that limits the covered individual’s ability to work on a permanent basis either in part or totally.

For those who are employed, many employers offer both short-term and long-term disability coverage as part of their employee benefits menu. It’s common for these policies to replace 50% to 60% of the employee’s compensation once the coverage kicks in.

This group coverage generally comes at a reasonable cost and will be sufficient for many of your client’s needs. However, some clients may have situations for which this type of coverage might not suffice. And of course, others who are small business owners, contract employees or otherwise self-employed might not have access to group coverage.

Group disability policies typically have a very broad definition of disability that often refers to the ability to do any sort of work. The policy might require you to work at any sort of job you might be able to do, and then pay you for the difference in your salary from your old job and the new one. In an extreme case this might require someone who is used to white collar employment to work in a fast food restaurant to receive policy benefits.

Disability coverage purchased privately will often have a narrower definition of disability. For example, an oncologist will be considered to be disabled if they can’t work in their field or something extremely close to it. Same with an attorney and many other professions.

Group coverage may not cover some forms of variable income such as commissions or incentives that many salespeople or high level executives might count on as a key portion of their overall compensation. The group policy might limit the covered compensation to the policyholder’s regular compensation.

We recommend that if you have a group plan to avoid having your premium payments deducted "pre-tax", as this can make your benefits taxable if you should become disabled and need to file a claim. Saving a few dollars in payroll tax could decrease your benefits considerably.

Along with that, note that your benefits can be taxable if your employer is paying for your coverage. 

You will need to shop around for a policy and insurance company offering the coverage that best fits your situation. In general, the narrower the definition of disability, the higher the premium. Privately issued policies will as a rule be more expensive than group coverage.

There are a number of factors that will impact the cost and even the availability of a disability policy for you. These include:

• The elimination period. This is the waiting period until coverage kicks in. The shorter the elimination period, the higher the premium. Think of it as a deductible in time.
• Definition of disability. As discussed above, a policy with a narrow definition of disability will cost more.
• Your occupation may factor into the equation, especially if you work in a field that is more likely than some others to result in a disabling injury.
• Your income. The higher the income the higher the premium as the insurance company would have to pay a higher benefit level for a disability claim.

Social Security offers disability benefits, but they are very hard to qualify for. This is not something you should depend on to cover you in the event of a disabling condition.

Should you find yourself disabled and unable to work for a prolonged period of time, this could be financially devastating without the proper coverage in place. 

During these times of Covid, it's more important than ever to make sure you can cover bills like housing, utilities and groceries. In the upper right of this blog is a "Get A Quote" button. Run your own quote and see how much it would cost to insure your lifestyle. If you have questions, drop us a note. In the meantime, stay healthy!

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

Cash When You Die, Cash When You Live Part 2

In the previous post I explained how Indexed Universal Life (IUL) is a great alternative for those who would like their life insurance policy to be useful while they are still living. The growth in the policies, which builds cash value, is based on an index of the stock market rather than interest rates. That means the growth inside the policy can increase faster in this low interest rate environment.

How is the IUL a way to help you in your retirement years? First, let's acknowledge that this is first and foremost life insurance. There is underwriting involved and for those who are young, healthy and do not smoke, the rates will be much less expensive. With that in mind, the growth of the cash value of the policy will greater as well for those in good physical shape.

One of the concepts of permanent life insurance is "over funding", which means that one can contribute additional premiums to the policy. This has to be done within certain limits, per the IRS (life insurance has a special tax status that can be discussed at another time), but it helps accelerate the cash value. Accessing that cash can be beneficial if one has emergency expenses, as it can be surrendered or taken out of the policy as a loan. 

Taking the money out as a loan has advantages and disadvantages. The money taken from the policy is tax-free, as it isn't income. On the other hand, if you die, your beneficiaries will get the death amount of the policy, minus the loan amount. Also, the interest can be a bit high, usually around 8%.

But there are other ways to use an IUL to your advantage when it comes to retirement. Let's compare it to a Roth IRA, which is one of the better vehicles out there. The Roth IRA has the following features:

• Post tax dollars are contributed.
• Tax-deferred growth.
• There is a limit as to how much can be contributed ($6000 for 2021).
• You have to be at least 59 1/2 years old to access the money without tax penalties.

On the other hand, here are some the features of an IUL.

• Post tax dollars are contributed.
• Tax deferred growth.
• There is NO limit on contributions.
• You can access your cash value at any age.
• There are living benefits for chronic illness and critical illness.
• If you die, the policy will pay your beneficiaries the face amount, minus any deductions or loans.

As you can see, an IUL can be a great alternative to a Roth IRA. People who are younger, healthier and don't smoke can make the most of this type of life insurance policy, so it obviously doesn't work for everyone. It also helps if the insured has the means to over fund the policy.

Years ago I had a client who used an IUL in an interesting way. Since he had been over funding it early on, it had plenty of cash value within a few years. This gentleman, who loved to look for a good investment, would see a parcel of land and decide to purchase it. He didn't want to go to the bank and fill out a loan application, as that was too long of a process, so he would call the insurance company and borrow against his policy to make the down payment on the property. Usually he would get his check within a few days.

He would repay the loan amount within a few months and do it again if he saw another good investment property. In essence, he was "warehousing" his money in the IUL for future investments. In the meantime, he still had plenty of coverage in case he died.

If you would like more information on IUL's or a quote, stop by our website and fill out a contact form so we can get back to you. In the meantime, stay healthy!

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

Cash When You Die, Cash When You Live Part 1

In a former life I had a securities license and sold products like mutual funds and variable annuities. Retirement planning was also part of the work as I would talk to people, mostly business owners or self-employed individuals, who had no funds put away or had gone through the little they had when the economy took a downturn around 2008. 

It was difficult trying to convince someone who was already wary of being in the market that they should return. At the time the market dropped, people who were not my clients called me wanting explanations. "Why are you calling me? I'm not your guy," I would ask. 

"My broker won't return my calls," was the usual answer. These people just wanted to vent and their usual investment reps were either dodging them or dealing with "bigger fish". 

In that experience I learned a couple of things. First off, as I mentioned earlier, a lot of people were just not willing to jump back into investing. Secondly, these people "lived in the moment", as most of them were younger and really didn't seem to care about their retirement years. Finally I realized that they could leverage their youth and relatively good health and purchase the life insurance they also didn't have.

I had worked with a company that focused on whole life insurance for a few years and liked the concept, but to be honest, I felt it was a bit too conservative. The company wanted us to sell it as a "retirement supplement", which was a hard sell. Even the mutual companies had tepid growth at the time.

I had also sold traditional universal life insurance, but there were other issues there. For starters, the growth inside the policies were based on interest rates, which had sunk to new lows. Back in the 1970's and early 1980's, universal life policies were sold as investment vehicles when the interest rates were in the double digits. Now they were losing money as the "cost of insurance" tends to increase in these policies as the years go by. In other words, the cash value inside the policies were getting eaten up by internal costs.

After doing some research I found a better alternative. The Indexed Universal Life (IUL) policy offers more potential for growth than a whole life policy or a low-interest universal life policy. But there is more to the story than just another life insurance option.

First off, let me acknowledge that there are detractors. The IUL is, like it's traditional counterpart, built with increasing internal costs, which can also "eat up" the cash value. However, it's internal growth is dependent on an index of the market (the clients has options to choose from) instead of interest rates. 

A properly structured IUL can offer upside growth with downside protection. There is a cap and a floor. The cap is the most the policy can earn and the floor is the least, typically zero. In other words, if the market takes off and does well, the policy's cash value will increase. On the other hand, if the market drops, as it did earlier this year when the pandemic struck, the policy loses nothing. 

Some carriers have begun offering IUL's with other benefits, either built in or as optional riders. Of course there are the usual riders like the accelerated death benefit and disability waivers of premium. But some include living benefits for chronic illness and critical illness benefits. 

In the next post I'll show you why an IUL is a great choice for supplementing your retirement plan (if you have one). In the meantime, stay healthy!

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

Getting Our Priorities Straight During the Holidays

With the holidays right around the corner I thought it would be appropriate to share a story from years ago when I was working for a very large insurance carrier. The agents were required to meet once a month and discuss our sales production numbers, and part of the process was that the veteran agents would give advice to the newer sales reps. 

As was usually the case in December, sales were down across the board. People generally don't buy much life or disability insurance before the holidays, with the exception of signing up for their benefits through work, so the agents were not too happy. I was one of them.

I shared how I would sit down with a couple to discuss life insurance, for instance, and would hear interesting excuses for not buying. "The holidays are coming and I need the money to buy a television," or "The new Iphone is coming out this week." 

That made no sense to me. "You have a wife and kids and a mortgage. If you were to die unexpectedly in the next few days, that cell phone isn't going to help your family stay in their home," I exclaimed to no avail.

Herein lies the problem for us insurance agents sometimes. We deal with people who mean well, and want to do right by their families, but their priorities are out of whack. The short term goals have overtaken the long term goals. Living in the moment is their mantra because "who knows what the future holds?" If they really want to know what is in store for them they should ask their elders. 

As I expressed these concerns to my colleagues at our sales meeting, a veteran agent laughed. "I know what you mean. Everyone is living in the moment, especially younger people. They think they are going to live forever and nothing will happen to them," he said. "But you have to help them understand that is wrong."

He continued to talk about the whole situation. "The holidays should be a time to emphasize the family. That should be their focus and if it isn't, then you need to make it their focus." It made sense. 

Of course we all want to have some nice gifts under the tree for the kids to open on Christmas morning. But trying to outdo ourselves (or anyone else for that matter) isn't what the holidays are all about. Wiping out our bank accounts at the end of the year over a phone or a television actually can make our festivities (and the new year) miserable. 

More importantly, all the gifts in the world can't make up for the loss of a loved one. So my message for you this year is this: It's fine to splurge a bit. This year has been tough on everyone, but remember that the holidays are about family, whether they are immediate, extended or otherwise. Make sure your priorities are in the right order. 

My job, as an insurance agent, is to make sure that your family will be able to continue to live comfortably if something should happen to you. Your priority should be making sure that your family is able to stay in their home and continue without you were to die unexpectedly. 

As I talk to my friends and clients I am learning that many have decided to cut back a bit on expenses this year. One less stocking stuffer or electronic gadget won't be missed. My wish for you and yours is to enjoy your family as much as you can. 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!

4 Cancer Insurance Options That Can Work For You

I often discuss cancer and it's impact on a family. Yes, there is the toll it takes physically as someone undergoes treatments, and despite all the advances in research on the disease, many continue to die from various types of cancer. 

There is also a huge financial impact on survivors and their families. Cancer treatments are expensive and even though health insurance picks up a large portion of the tab, there are still some huge gaps not covered by major medical policies. Deductibles, co-pays, travel, and other out-of-pocket costs can wipe out a family's finances. Not to mention the lack of income if the cancer patient is the breadwinner of the family.

As previously discussed on this blog, there are several cancer insurance plans available on the market. There are also non-traditional plans that can also help cover the expenses related to having cancer. These plans pay directly to the insured, not the hospital or the doctor. Here are a few. 

1. Cancer treatment plans. These are the insurance plans that most people think of when considering cancer insurance. They generally pay a structured set of benefits for various treatments. For example, if someone is hospitalized for cancer, the policy may pay a set amount of money, say $100 per night. There may be another benefit if surgery is necessary. Wigs (for hair loss as a result of chemotherapy) may even have a benefit. 

Many of these types of plans are offered through "worksite" companies, which means you can get them through your work if your employer agrees to deduct the premiums from your paycheck. If you are self-employed or a business owner, you can get an individual plan and the costs is just about the same. 

A cancer treatment plan pays the way it sounds. As you are receiving treatments, you can remit the receipts to the insurance company to continue receiving benefits. As cancer treatments are not a "one and done" scenario, you could continue receiving benefits for months. With that in mind, a cancer treatment plan has the potential to pay out a lot of money, but it can also be difficult for someone who is seriously ill to keep up with the paperwork. If you would like to run your own quote on one of these plans click here. 

2. Lump sum plans. Unlike the cancer treatment plan, these plans pay a lump sum of money when someone is diagnosed with an invasive cancer. There's no need to save receipts and you can choose the amount you want, along with your premium amounts. Many people prefer these plans for their simplicity. 

One of our lump sum insurance carriers has included genomic testing with their plan. Your doctors can send a biopsy sample to a laboratory where the sample is examined. The lab will in turn contact the doctors and give them suggestions as to how to treat the cancer. All of that is included at no extra charge and can help dramatically. If you would like to see a short video on how it works, click here. 

3. Critical illness insurance. Critical illness plans generally cover several specifically named illnesses or health events, such as heart attacks, strokes, kidney failure and major organ transplants. Sometimes cancer will be included on the list. These plans are paid in the same way as the lump sum plans in that you choose a face amount when you apply. 

4. Life insurance will critical illness riders. Life insurance carriers are starting to offer riders that cover critical illness (and chronic illness) into their policies, and many are included at no extra charge. For younger people this can be great as the premiums are low. I always emphasize to my clients that they are buying life insurance, first and foremost, so the underwriting process can be an issue. 

This isn't the cheapest option as most carriers only include the riders on their permanent plans. However, we have found one carrier that offers them on their term policies. 

On all of these plans be aware that there may be some underwriting involved. If you have had an internal cancer in the last few years you could be denied coverage. Also, skin cancer isn't always covered. 

If you have questions about any of these options let us know. Our website has contact forms and a page where you can book a phone appointment that works on your schedule. In the meantime, please stay healthy!

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