4 Questions About Funeral Planning

Those of us who sell life insurance often talk about how a policy can benefit loved ones following the loss of a family member. If a policy is structured correctly to cover any outstanding debts, such as a mortgage or other loans, as well as replacing lost income and funding education needs if children are involved, that coverage should work well in the long run. 

However, the family will need those funds in the short run as well. First and foremost, funeral expenses will need to be taken care of as quick decisions are made by a grieving family. In a perfect world, we would all have pre-planned our funerals. Picking out a casket, having burial plots put aside and other decisions can best be figured out ahead of time when people are rational. 

This is why it's important to for your life insurance agent to include final expenses into the conversation. A traditional funeral can be expensive, averaging between $10,000 and $13,000, depending on where you are. To help you plan and save your family a lot of stress, I've come up with a few frequently asked questions about funerals and final expenses. 

1. How can my life insurance pay for the funeral?

If you have named a family member, let's assume a spouse, to be your beneficiary, they can "assign" a portion of the proceeds to pay for the funeral. The funeral home typically will have paperwork on hand for this so that the insurance carrier can pay them their fees directly. 

Keep in mind that the beneficiaries need to be up-to-date. In the case of my father, who had not updated his policies in years, all of his beneficiaries has pre-deceased him. As a result, my sister and I had to pay the funeral home and the policy paid the death benefit to his estate, which took months to settle. 

2. Does pre-planning a funeral save money?

Not necessarily. While choosing your items may help a bit, unless you pre-pay, the prices can go up. Using my father as an example again, he pre-planned his funeral but didn't pay for anything. When he died years later, inflation had an effect and the prices were a bit higher. 

I met a lady years ago who owned a local cemetery. I'm not sure if she was trying to get me to buy a plot but she said that inflation on burial plots were higher than regular inflation. If you are planning on being buried, you should probably choose the plot and pay for it ahead of time if you can.

3. Can I buy my casket online or do I have to get it from the funeral home?

You can purchase your casket and other supplies online. The funeral home can handle the embalming, host the viewing and coordinate other details. Be aware that they would prefer you buy from them as they have a lot of overhead and they markup their caskets and vaults accordingly. 

Under the FTC Rule, you are allowed to purchase supplies from a third-party vendor and the funeral home is required to accept them. 

4. What if I just want to be cremated?

That shouldn't be a problem. Many people have chosen this option as it is less expensive than purchasing a burial plot. Again, the best advice is to discuss this when pre-planning. 

The director of a cemetery told me once that the biggest issue he dealt with was that when people made plans for cremation, they often failed to inform their loved ones. Family members would expect to visit a plot that wasn't there. "They were expecting a place to stand together and grieve, but when they realized there wasn't one they would get very upset," he said. "I just wish they would tell their family ahead of time."

When discussing your life insurance with your agent, be sure to include your funeral and other plans into the talk. 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! 

Life Insurance and Long Term Care Combo Products

If you or a loved one ever need help with daily living activities, you will discover that custodial care can be expensive. That’s true whether the care is provided at home, in an assisted living facility, or in a nursing home, and it’s especially true if care is needed for many years.

Long-term care (LTC) insurance is available, but insurance companies have learned that these costs can be steep. Premium increases for LTC insurance are in the news (for example, some press reports tell of cases where premiums have tripled in the last three years), and some insurance companies have dropped out of this business. Consumers face the prospect of paying thousands of dollars a year, every year, and never getting any benefit at all if it turns out that custodial care is not needed.

Some people might prefer another path to LTC coverage, such as a hybrid or “combo” product. In a traditional life insurance policy a consumer buys a product that will deliver a death benefit, but with a combo product, the consumer can obtain a rider that will offer a payout if the covered individual needs LTC.

Let's assume that our new friend Bob has an insurance policy on his life, payable to his son James. Bob’s policy has an LTC rider. So, if Bob needs LTC, that insurance policy will provide a benefit to help pay those bills. Regardless if Bob needs care and collects an LTC benefit, his life insurance policy will pay a death benefit to James at the time of Bob’s death.

Generally, in this situation, Bob would receive an “accelerated death benefit” to pay for care.  When someone receives such a payout, the amount of the lifetime benefit is subtracted from the death benefit that eventually will be paid to beneficiaries. Typically, a combo life insurance product would be some form of whole life or universal life, rather than term life insurance, although of late we offer a term policy that includes "living benefits".

The common aspect of this tactic is the absence of a “use it or lose it” drawback. With standalone LTC insurance, the money spent could wind up generating no return. With life insurance there will be a payout to someone at some point. The extra LTC coverage is another benefit that possibly will come in handy.

Acquiring LTC coverage in this manner usually avoids the threat of future premium increases. As another attraction, existing life insurance policies might be exchanged, tax-free, for a new contract that includes an LTC rider.

The attractions of LTC combo products, however, come with negatives as well. The underlying problem here includes the potentially disastrous costs of LTC, and this problem can’t be escaped by switching from one type of insurance to another. There often is a cost to adding an LTC rider to an insurance policy. These combo products may require a substantial outlay, which must be paid upfront or within relatively few years.

In addition, tax advantages may be lost with combo products. With most standalone LTC insurance policies, certain amounts of your premium count as a medical expense, which can potentially be deducted. That’s not the case with a rider to a life insurance policy.

As of 2017, people age 40 and younger can include LTC premiums up to $410 as a medical expense; that amount scales up as premium payers age, maxing out at $5,110 for those 70 and older. Those outlays are added to other medical expenses, and the amount that exceeds 10% of adjusted gross income can be taken as an itemized deduction.

Combo products vary widely, and so do individuals’ concerns on this issue. However, generally, people who only want LTC insurance might be best-served with standalone coverage, working with an insurance professional to hold down premiums. That said, if you are interested in life insurance such as whole life or universal life, it may be worth exploring the idea of adding LTC coverage, perhaps for an added fee.

There are a few factors we take into account when discussing these options, notably the age of the insured at the time of the application and, of course, their budget. A younger person may find a combo policy more affordable than an older person.

If you have questions or concerns let us know. 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! 

Do You Need Dental, Vision Or Hearing Insurance?

On occasion I work with enrollment companies helping people with their voluntary benefits. We have the usual line-up of products, with life insurance and disability plans available for the employees that we meet with. By far, the most requested products are the dental and vision plans. As a matter of fact, the employees will walk in to our one-on-one meetings and say something along the lines of "all I want is my dental and vision". 

There are those of us, myself included, who don't have access to group policies through an employer. For people who are small business owners, contract employees or otherwise self-employed, getting a good individual plan has been difficult. 

On an individual basis, dental plans are available but can be rather pricey. There are usually waiting periods as well, which can make the product unattractive to many people. With all of this in mind, I have been a bit resistant in including a dental plan in our line up of products. That is, until now. 

We have recently begun to offer a plan through one of our carriers, Manhattan Life, which solves many of the issues we have been concerned with. And even better, this plan not only covers dental, but vision and hearing too!

Another reason we have begun to offer these plans is because Medicare does not provide coverage for dental, hearing or vision and many of our clients have requested information for these services of late.  

Here are a few of the basic features*:

• No networks. You can go to any provider.
• A $100 deductible per year per person.
• The plan is available to people from ages 18-85. 
• You can include up to 3 children.
• You can choose your annual maximum benefit of either $1000 or $1500
• Guaranteed Issue (No health questions)
• Guaranteed Renewable. You can keep it as long as your like as long as you pay the premiums.
• No waiting period for preventative and basic dental services.
• Benefits for hearing exams and hearing aids.

(For a more detailed list of services, click here.) 

As mentioned above, not having a network means you can go to any provider. One thing to keep in mind though is that your doctor may or may not file your claim for you. The patient may have to pay the bill in full and submit the claim on their own. Because of this we recommend asking your doctor before receiving services so there are no surprises.  

One of the nice parts of this plan is that if one does not use the full maximum benefit for dental, they can use the balance for vision or hearing services. One of our partner agents was telling me how he only used a small portion of his benefits on the dental plan one year, so he used the balance to get new eyeglasses. That's maximizing your plan!

We have added a quoting tool to our website, but for your convenience you can run your own quote here.  If you like your quote you can even begin the application, which is easy to complete and only takes a few minutes.

Not everyone wants or needs dental insurance. But for those who do, we hope you take a few minutes to look at the plan and run your own quote. In the meantime, please stay healthy!

*Plans vary from state to state. Be sure to ask for a brochure for your state.

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!

An Interview With Our Own Insurance Goddess

From time to time I like to talk with someone I know and admire, hoping that they will instill some wisdom that can help me succeed. So last week I talked with my good friend and colleague, Jeanne Doran aka The Insurance Goddess. We discussed how she and I met and I asked for her permission to use some of her sage advice in the blog. As a gracious lady, she said yes. 

I met Jeanne about 10 years ago when I was selling health insurance (pre-Obamacare). She was working for the Gilston Agency in Charleston, SC and I was contracted through them to sell a major medical coverage. I'm not sure if she was a CSR but she helped me over the phone and email with some issues occasionally. Always helpful and a bit sarcastic (like me!), I kept in contact with her, even after she had moved on from Gilston and had become an independent agent. I had a life insurance carrier that I liked to use and got Jeanne contracted with them. 

More importantly though, I would call Jeanne when I had questions about health insurance. She was, and still is, a great resource when an answer is needed quickly. Over the years we have remained friends and I was enthused when she finally accepted my offer to work with Surf Financial Brokers. She even let me put her picture on the website! 

Without further ado, here is a snippet of our conversation.

Me: I know you told me this before, but it wasn't your idea to go into the insurance business, was it?

Jeanne: Honesty, my husband recommended I work in the insurance business. He thinks I'm good with people.

Me: Well, you are. How do you find your prospective clients?

Jeanne: My business primarily referral based. Once I have assisted a client with their insurance needs we look at other options to round them out.

Me: That makes sense. How do you prepare for a client meeting?

Jeanne: Typically I cross evaluate types of plans within the product line they are looking for.   For instance, if it's a health case I look at BCBSSC (Blue Cross), United, and Aetna, then look at the costs versus the benefits and share those details at the "meeting". And I always keep in mind there may be something more for them to round them out.

Me: Do you attend any kinds of networking groups?

Jeanne: I only am in one networking group at this time and it's industry based.

Me: Not counting my book, do you recommend any good books on sales? 

Jeanne: The Tipping Point. Seven Habits of Highly Effective People. The Power of Positive Thinking

Me: Malcolm Gladwell is a favorite of mine too.  Do you have a mentor?  

Jeanne: My first Mentor was David Gilston.  He is a broker who has stood the test of time. He'd say, "when the rules change, teach me the rules, and I will win every time."

Me: How have you become a mentor for others?

Jeanne: I have a circle of fellow agents who are part of my "team" and we bounce ideas off each other!  I like to think I am their mentor!!

Me: Well, you are the Insurance Goddess! On a different note, has Covid affected your practice?  

Jeanne: Yes, I rarely meet prospects in person any more.  I am learning to be effective with Zoom and am always looking for the best ways to connect.

Me: What did you do with your first commission check?  

Jeanne: Now that was a long time ago, so I must have used it to pay household bills!!!

Me: We have all dealt with strange people from time to time. Have you ever had a strange or unusual encounter with a client?

Jeanne: Have I EVER! I was assisting one lady with her health benefits and her husband, who had a type of early onset Alzheimer's, strode by the table several times, pacing back and forth. Finally he went upstairs and when he came back down, he did not have anything on but his shirt. 

Me: I hope you got them both "covered". 

I hope you learned a little about Jeanne as we pull back the curtain to take a peek at a day in the life of an insurance agent.  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!

The Life Insurance Review

Life insurance is like your car, your home and a lot of other things you own in that one has to do "maintenance" on it from time to time. By that, I mean that one shouldn't buy a policy, throw it in a drawer or safe deposit box and forget about it. An owner of a life insurance policy should take a good look at it at least every other year to make sure it is doing what is needed.

One of the many mantras that life insurance agents love to repeat is the word "review', as is "We need to review your policy." In sales classes, agents are taught to contact their clients twice a year - on the birthday of the client and on the anniversary date of their policy. The former is mostly to check in and hope the client will have some referrals. The latter is to set an appointment with the client to go over their policy, thus the "review". 

As an agent who has been in the business for a while, I can attest that a vast majority of clients say something like "I'm good for now" when I mention taking a look at their coverage. Maybe I should press harder for that appointment, but it's obvious the client isn't interested.

Unfortunately, this goes on every year and on occasion something will go sideways when the insured dies. Whether the client doesn't have enough coverage or just failed to keep the beneficiaries up to date, I know there are adjustments that can be made.

A good example is when a beneficiary change is in order. In that instance, either the named beneficiary has passed away unexpectedly or should be replaced for other reasons. A few years back I found out that my client's daughter, who was in her 20's and had a history of drug issues, was living on the streets. My client was taking care of her grandchildren with the help of another adult child. 

It was an awkward subject to broach with my client as I had heard about her predicament through the grapevine, but she was gracious as I let her know that she was doing the best she could with a bad situation. She acknowledged that her daughter probably was not a good candidate to receive a large death benefit and we changed everything over to the other adult child, who ultimately got legal custody of the kids.

In another instance, I met with a client who had taken out a policy for $250,000 a few years earlier. At the time, the face amount made sense because it covered the balance of his mortgage and could help pay off some items like final expenses and some credit card debt. He had some money put away and his wife also had a good job. However, he had some unexpected expenses that required he borrow some funds, and the lender was insisting he purchase a life insurance policy to cover the debt.

By checking in with him and learning about his new situation, I was able to help him secure the note with a 10-year term life insurance policy which made the lender very happy. (Sidenote: My client paid off the debt earlier than expected and was able to cancel the policy.)

If your life insurance agent calls you for an annual policy check up, take advantage of it. And if your agent doesn't call to check in with you, give us a call and we'll be happy to put a second set of eyes on your policy to see if you have what is appropriate for 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!

We Get Referrals From Influencers

Last week I received one of the highest compliments an insurance agent can get. My client, whom I have worked with off and on for several years, handed me a sheet of paper with about a dozen names on it. "These are friends of mine. Some are family. I told them what a good job you do and how you don't pressure me into anything. They are expecting you to call them."

This was a big surprise because I mention referrals from time to time but don't push for them as much as I probably should. There have been times when I have been chastised by my sales manager for not using the litany of Jedi mind tricks we are taught. Having a nice list of names presented to me is a different matter altogether.

There are times when I will explain to a client how they can take "ownership" in my business by giving referrals. The reasoning is that if a client refers me to a friend or family member, I can spend more time working with that person instead of prospecting. One of the many dirty little secrets of the insurance business is that we spend a lot of time just trying to get clients, especially at the beginning of an agent's career. It can take time away from helping the clients we have so clients feel they are helping themselves when them give us someone to see.

A former coworker of mine used to say that the hardest part of the job was finding someone to talk to. It's true. It's a constant battle to find new clients when you sell something that people really don't want to think about. I've heard people say things like, "I'm saving up for a car" or "I'm saving up for a down payment on a house." Nobody says, "I'm saving my money for an insurance policy." 

One of the reasons a lot of agents don't like to ask for referrals is because many clients don't care to give them because they have gotten burned in the process. A typical example goes like this. Bob, the agent, meets his new prospect, Mary and asks her for a referral. She reluctantly gives Bob the name of a coworker, Jim. Bob calls Jim, who isn't interested and berates Mary. "Why did you give that guy my name? I thought we were friends!" Jim says to Mary. Mary is hurt and never gives another referral.

There are several problems here but the obvious one is that Bob hasn't proven himself to be a good agent. Mary just met the guy for goodness sake! How would she know if he is going to be a decent agent or if his insurance products are worthwhile?

This is why, on those occasions when I do get referrals, they come from clients I already work with, who have had time to see that I'm working for them. Those clients are "influencers" in a way because they hold sway with their friends and family members.

So when someone, like my client who gave me that list of names to call, takes the time to do something like that, I know I have earned it. It really is the best compliment someone can give me. That list will potentially make me some money, but what it really does is let me know that my client has taken ownership of my insurance practice. And she is trusting me to work with those people and with the same degree of professionalism I did with her. 

We appreciate all referrals and introductions at Surf Financial Brokers and look forward to helping you and your friends. 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!

4 Things To Consider When Choosing A Term Life Policy

Over the years I have noticed that many of my prospective clients don't really know about the different types of insurance, such as term insurance or whole life. As a matter of fact, I just met with a young couple who said they needed whole life because "that's what my mother said to buy". When they saw the price of the whole life policy compared to a term and a universal life they were surprised at the cost. "Maybe Mom didn't know what she was talking about after all," the young man said with a chuckle.

Don't get me wrong. There is nothing wrong with whole life or any other kind of life insurance, as long as it fits your needs and your budget. As I always say, each insurance product is good for something, but not all insurance products are good for everyone. In the case of this couple, the best fit for their needs and their budget was a term life policy.

Term life insurance is exactly as it sounds. It provides coverage and a guaranteed rate for a specific term, say 15 or 20 years. It does not build cash value and you can't borrow against it. Think of it as renting a home compared to buying a home. If you are buying a home you can build equity and borrow against the value. Renters can't do either of those. 

The advantage of term life insurance is that, because it only provides a death benefit, it can be much less expensive and one can purchase a lot of coverage. For example, a 40 year old man who does not use tobacco and is fairly good health can get a $100,000 20-year term policy for under $25/month. That same person applying for a whole life policy for the same face amount would pay at least $100/month. That's a big difference in price. 

So what do you need to look for when shopping for a term policy? Here are a few suggestions.

1. Term length. How long of a term do you need? Be aware that the longer the term, the more the premium will go up, but it is better to be safe than sorry. If you have a 30 year mortgage maybe a 30 year term is a good fit. Also, you can consider how long it will take to pay off the house and to get the kids out of the house. For younger people, we offer term policies to age 65. 
2. Riders. Many term policies will offer optional riders you can add on to the policy. Most of my clients like the Waiver of Premium option because if they are disabled and unable to work, the insurance company will pay the premium for them. 
3. Other features. Some policies have riders that are built into the policy at no additional charge. We have one carrier that includes benefits for chronic illness and and critical illnesses in their term life policies. 
4. Convertibility. This is important for those people who may want a permanent policy at some point because they can "convert" part or all of the policy without any health questions. There may be limitations on when one can convert their policy so check with your agent.

If you are considering an affordable way to protect your family's finances in case something should happen to you, term life insurance coverage may be a good fit. Please feel free to leave questions or comments and let us know if we can help you. 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!

3 Frequently Asked Questions Life Insurance

Occasionally someone will ask me a question about insurance. More specifically, they ask about types of insurance and which is the "best" for them. After thinking about it, I have noticed that a lot of the same questions are asked, so I thought I would take the opportunity to help everyone with some broad stroke answers. Keep in mind that these are fairly generic answers and if you need a more specific answer to your situation, let me know. 

1. What is final expense insurance?

Final expense life insurance is exactly what is sounds like. It is designed to pay for expenses associated with dying, specifically funeral costs. A funeral can cost around $10,000, but that is just an average. Be aware that there are other costs associated with death, such as a hospital stay. I recommend to our clients that they insure themselves for maybe $15,000 instead, just to make sure their loved ones are not having to come up with those unexpected expenses out of their own pockets. 

Most final expense plans are comprised of whole life insurance, which can be expensive. Since whole life insurance typically builds cash value which is unnecessary for what the need is, you may be able to find another alternative. If you are healthy and can make it through a medical exam, you may want to consider a guaranteed universal life (GUL) policy. These policies don't build any cash value, but can be a lot less expensive. GUL's are guaranteed to be there for you as long as the premiums are paid.

2. Should I buy life insurance to cover my children? 

Yes! For some reason people think that putting life insurance on a child is a horrible thing. "I just don't want to think about my child dying" is the common refrain. Neither do we, but it does happen. As I mentioned in a recent post, it is sad enough watching parents suffer through the loss of a child, but it's just as bad attending a fund raiser to pay for the funeral.

A permanent policy that builds cash value is appropriate in this case. And it can be very affordable since the child is young and healthy (I assume most kids are "non smokers"). And when your child is older you can transfer the ownership of the policy to your now adult child, who can continue to pay the low premiums, or cash it out if they need to. 

A side note: Most insurance companies frown on large face amounts for children's life insurance. Generally speaking, $25,000 or $50,000 is more than enough and the underwriters will ask a LOT of questions if the policy is for more than that amount.

3. Do I have to keep my beneficiaries the same?

Absolutely not! As a matter of fact I recommend you review your life insurance every few years. Part of that review should be updating your beneficiaries. Changes in circumstances may lead you to decide to change your beneficiaries. Perhaps your current beneficiary has pre-deceased you, or your child isn't as responsible as you had hoped for. 

I had one client who was widowed and her only child was incarcerated. She felt as if she was paying for insurance that would benefit no one. I asked her if there was a charitable cause that she was interested in and she said her church was always in need. We managed to change the beneficiary to the church with enough put aside to cover her final expenses. 

Keep in mind that beneficiary changes can be made at any time, but some companies do require a "wet" signature, which means you may not be able to do it over the phone or online. 

If you have questions about life insurance, drop me a note in the comments section. And if you would like a quote you can click here and run your own. 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!

Does My Small Business Need Disability Buy Out Insurance?

Disability buy out insurance is something that small businesses need. Unlike a large business, small businesses can sometimes be crippled by the absence of a key person - someone who is so critical to the company that the business could fail if that person is unable to work. Depending on the job of that key person, their disability can leave work undone or have a financial gap in the business income that a business may not recover from without disability buy out insurance. Disability buy out insurance is designed to provide the funds necessary to purchase an owner or partner's interest in a small business if that person becomes disabled.

Disability buy out insurance should be an integral part to any business continuation or succession plan. Small business owners need to agree to buy any disabled owner's interest in the business at a pre-arranged, agreed upon price, and fund the purchase with disability buy out insurance. The buy out will allow the remaining owners to continue operations by financially replacing the key person whos disability prevents them from returning to the business.

The first step in purchasing disability buy out insurance is to have a thorough and accurate valuation of the business. Once a fair market value has been established for the business upon which the parties agree, the owners must then into a buy-sell agreement setting conditions that will automatically generate a sale of a disabled owner's interest. Finally, a disability buy out insurance policy is purchased on each owner or partner to provide the funds needed to buy out that share in the business in the event of a disability. 

When a disability occurs, an elimination or waiting period, must be satisfied before any benefits are paid. The length of this period is decided upon at the time of the disability buy out insurance application. the elimination period begins at the date of the initial disability and can extend for 12, 18 or 24 months, depending on the terms of the buy sell agreement. Choosing the length of the elimination period is determined by the needs of the business. The longer the elimination period, the less expensive the premium will be. However, the longer a business would have to sustain itself before the benefit or buyout occurs.

Under this type of small business insurance, benefits are paid once the elimination period has been satisfied with no need to confirm continued disability. In other words, once the payment of benefits begins, the terms of the buy-sell agreement will be fulfilled and the policy will pay benefits accordingly. A disability buy out insurance policy can be custom designed to meet the specific needs of each company, but lump sum or scheduled payments over a two, three or five year period are the most common benefit payment options.

Small businesses may not have the resources that a large business has. With that in mind, they should have contingency plans including small business disability insurance, business overhead expense policies, disaster recovery plans and other risk transfer components. The total disability of an owner active in the day-to-day operations of any business could present serious financial problems. To determine your small business disability insurance needs, ask yourself the following:

• What impact would the disability have on the company's income?
• Where will the money come from to an income to the disabled (non-contributing) owner?
• Does the business have adequate funds to buy out the disabled owner?
• Will the company need to borrow money to do this?
• What defines a disability from the business' perspective?
• How long must an owner be disabled (the elimination period of the policy) before the policy is executed and the share is sold to the remaining partners?
• Will the benefits to fund the buy out be paid as a lump sum or over time?
• What if the disabled individual recovers after the buy out is triggered under the terms of the buy-sell agreement and, as a result, the policy stops paying benefits? 

A small business disability insurance policy can be useful and a key element of a buy-sell agreement, but a small business must be sure to ask the right questions as it plans for the future. Doing so will enable the remaining owners to purchase or buy out key persons without having to seek outside investors. A disability buy out policy will allow a business to continue in its normal operations without having to financially drain the company to keep control. 

If you would like your small business disability insurance plan to include disability buy out insurance, ask us about it. We'll be happy to put together a quote for you. 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!

4 Advantages of Using Our Quoting Tool

People have asked me when I was going to get the quoting buttons for cancer insurance, accident insurance and hospital indemnity plan* on the Surf Financial Brokers website. Well, after some technical glitches they are finally there. And the best part is that they work! 

One of the running myths in the insurance business is that people want personalized service. That is true for some of the public, but let's face it, a vast number of people have been purchasing homeowners and car insurance online for years. They are comfortable with the DIY approach and not having an agent, but rather filing claims and handling other service issues through a call center. That's perfectly acceptable for these folks, while others do want someone nearby to answer their questions. 

Running your own quote on our site is awesome for several reasons. 

1. You can cover whomever you want. Whether you need coverage for yourself, you and a spouse, you and your kids or the whole family, you decide who is covered. 
2. You can customize it to fit your needs. There are plenty of riders that you may or may not be interested in. 
3. You can fit it in your budget. While deciding who to cover and what optional riders you like you can see the premium as you go. 
4. You don't need an appointment. We know you are busy so you can use our quoting tools when it is convenient to you. And if you have questions, drop us a note or book an appointment using our online calendar. 

And it is extremely easy to run a quote. When visiting our Products and Quotes page you will see buttons for Hospital Insurance, Accident Insurance and Cancer Insurance. Simply click on the one you are interested in. A page will appear with some information on the product along with a "Get Quote" button. From there it is just a matter of entering your information and getting an insurance quote.

Along with these products, there is also a "Get A Quote" button for life insurance and disability insurance**. The life insurance button let's you choose from term or whole life with options such as Return of Premium term life. There is even a tool to help you determine how much coverage you need.

For disability insurance, you let the calculator know what kind of work you do and your annual income. Disability insurance helps you to insure your paycheck in case you become sick or hurt and are unable to work, you can still pay the bills. 

We ask that you give it a try. If you have questions or concerns, let us know. And if you like it, we would appreciate referrals. Referring us helps us to grow our agency by spending more time with our clients and less time prospecting.  

We have attempted to create a virtual agency that can take care of people either way. If someone prefers to run a quote and apply for coverage without the help of one of our agents, that is absolutely fine. But there are those times when one wants a real person to answer their questions, and we can do that for them as well. 

Run a quote and give us some feedback. And in the meantime, please stay healthy!

*Not all insurance products are available in all states. 

**Rates are estimates based on your information and are subject to underwriting. 

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

Do I Have To Be In A Nursing Home Or Assisted Living?

In the last few weeks I have had some conversations with people who were considering Long Term Care (LTC) insurance. I always appreciate folks who are looking into this coverage because I consider them to be forward thinkers. In our current environment of YOLO (you only live once), the "live for today" mantra can make it hard for those of us who help plan for future issues. Those who think that "we can go at any minute so we should enjoy today" aren't looking at the future and tend to miss the forest for the trees.

People who usually take on the YOLO mantel seem to be those who have either suffered an unexpected loss or those who have seen or heard about such a loss. "I could drop dead like my mother at any minute," is their refrain. The fact that the rest of the family has survived to their 90's is irrelevant to them.  

The paradox happens when I say, "You are correct. You could die in the next week." Then I ask, "If you knew you were going to die tomorrow how much life insurance would you buy today?" You see, the "future is unknown" argument can go both ways to a decent insurance agent.

As for the forward thinkers, they seem to get the bigger picture. These people are aware of their surroundings from a 80,000 foot view. An anecdotal story about a life cut short doesn't keep them from understanding that statistically they will live to old age, and sickness and poor health may be a factor. That's when those people plan for LTC.

But the forward thinkers are asking a question now that I haven't heard as much before. "How do I stay out of a facility?" Previously, when I spoke to LTC prospects, we discussed home health care as part of the picture. Everyone wants to stay in their home but many understand that as a chronic illness progresses, the chances of ending up in an assisted living or skilled nursing facility increases. 

Covid has changed that discussion. The images on the news of elderly patients sequestered in facilities and waving to their families through the windows are heartbreaking. Worse are the exorbitant numbers of infections and deaths at these facilities as the virus spreads through the community. The staff and care givers are getting the virus too.

This is why clients are so much more interested in staying in their homes now. Yes, many LTC policies include coverage for home health care, but the premiums on those policies can be very high. Plus the underwriting may keep some of these prospects from getting coverage at all, regardless if they stay at home or a facility. 

With all of this in mind, we have been fortunate to find a suitable Short Term Home Healthcare (STHHC) policy from one of our carriers. This policy is a great addition to any LTC planning in that it's both affordable and easy to understand. 

A client can receive benefits as they stay at home for up to 365 days, and those do not have to be consecutive days. Some people may have a caregiver in their home only 2 or 3 days a week. They can also choose from three levels for their benefits along with some additional riders. 

The policy is not available in all states and the minimum application age is 61 years old. Given that 24 hour/round the clock home healthcare can cost over $70,000 annually, taking a look at STHHC is a smart move that can save you tens of thousands of dollars in the long run, as well as keeping one out of facility. 

If you are interested in learning more, check out our website or drop us a note and we can schedule a phone appointment. In the meantime, stay healthy and forward thinking.  

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!

How To Make Life Insurance Work

Life insurance has come a long way since the days when it was known as burial insurance and used mainly to pay for funeral expenses. Today, life insurance is a crucial part of many estate plans. You can use it to leave much-needed income to your survivors, provide for your children’s education, pay off your mortgage, and simplify the transfer of assets. Life insurance can also be used to replace wealth lost due to the expenses and taxes that may follow your death, and to make gifts to charity at relatively little cost to you.

To illustrate how life insurance can help you plan your estate wisely, let’s compare what happened upon the death of two friends: Neil, who bought life insurance, and Bob, who did not. (Please note that these illustrations are hypothetical.)

Life insurance can protect your survivors financially by replacing your lost income

Neil bought life insurance to help ensure that his survivors wouldn’t suffer financially when he died. When Neil died and his paycheck stopped coming in, his family had enough money to maintain their lifestyle and live comfortably for years to come.

And since Neil’s life insurance proceeds were available very quickly, his family had cash to meet their short-term financial needs. Life insurance proceeds left to a named beneficiary don’t pass through the process of probate, so Neil’s family didn’t have to wait until his estate was settled to get the money they needed to pay bills.

But Bob didn’t buy life insurance, so his family wasn’t so lucky. Even though Bob left his assets to his family in his will, those assets couldn’t be distributed until after the probate of his estate was complete. Since probate typically takes six months or longer, Bob’s survivors had none of the financial flexibility that a life insurance policy would have provided in the difficult time following his death.

Life insurance can replace wealth that is lost due to expenses and taxes

Neil planned ahead and bought enough life insurance to cover the potential costs of settling his estate, including taxes, fees, and other debts that his estate would have to pay. By comparison, these expenses took a big bite out of Bob’s estate, which had to sell valuable assets to pay the taxes and expenses that arose as a result of his death.

Life insurance lets you give to charity, while your estate enjoys an estate tax deduction

Using life insurance, Neil was able to leave a substantial gift to his favorite charity. Since gifts to charity are estate tax deductible, this gift was not subject to estate taxes when he died. Bob always dreamed of leaving money to his alma mater, but his family couldn’t afford to give any money away when he died.

Life insurance won’t increase estate taxes — if you plan ahead

Before buying life insurance, Neil talked to his attorney about the potential tax consequences. Neil’s attorney told him that if his estate was large enough, it could be subject to federal and state estate taxes, depending on the applicable law at the time of his death. Neil and his attorney put a plan in place that would allow Neil’s survivors to use his life insurance policy to help pay for some of the potential estate taxes that might be owed at his death.

Be like Neil, not like Bob

Throughout his life, Bob worked hard to support his family. Neil did, too, but went one step further — he bought life insurance to protect his family after his death. Here’s how you can be like Neil:

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• 1. Use life insurance to ensure that your family has access to cash to help them meet both their short-term and long-term financial needs.
• 2. Plan ahead — buy enough life insurance to cover the potential costs of settling your estate and to ensure that the assets you leave to your survivors aren’t less than you intended.
• 3. Consider using life insurance to give to charity.

As you can see, these are just a few ways to make sure your life insurance policy is used efficiently. If you have any questions or comments, let us know. 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!

Happy New Year and Thank You!

The New Year has begun! Happy New Year to all and good riddance to 2020!

A few nights ago there was a primetime special on one of broadcast networks with a recap of 2020. The bulk of it was a chronological look at the Covid pandemic and how people and our leaders were reacting to it all. After watching about 15 minutes of this I had to change the channel to a ballgame thinking to myself, "I don't want to relive that again. And who doesn't know this stuff at point?" It was bad when it was happening and it still is bad in the rear view mirror. 

And that is where 2020 needs to be, in the rear view. There is no need in dissecting it and examining it under a microscope. We were all there and saw it firsthand.

Through it all a few good things did happen. Most of us have a newfound respect for our medical community, especially those nurses and doctors who have been doing their best in overcrowded hospitals. I would be remiss if I didn't mention the caregivers in nursing and assisted living facilities too. These folks have poured their blood, sweat and tears into their work, with some getting infected themselves. And a few have died in the process. We should be thankful for them and their efforts. 

Others should also be considered in the same vein. Grocery store workers, meat workers and others who help us get food on our tables should know they are more than "essential".

Yes, there have been some silver linings. People have learned how to get together when they can't be together, via virtual technology. We have adapted and overcome. Like they say, "what doesn't kill you will make you stronger." We as a society should come out of all of this stronger.

Speaking on behalf of myself and our network of agents at Surf Financial Brokers, I want to thank all of our clients who kept us going all year. Your faith in us to help with securing your financial goals is greatly appreciated. And to those of you who referred us, shared our information and even laughed at some of the dumb memes we shared, I say thank you.

Insurance is a tough business. It's the only product I can think of that people buy in hopes of never having to use. Fortunately, there are those who understand and appreciate that bad things happen in life, and when those things occur, you can shift the responsibility to an insurance company. That's what our business is all about. 

Part of the optimism we have is due to the upgrades we have made to our business. Going "virtual" has meant implementing some different tools, especially on our website. The goal of our agency is to make it as easy as possible for our clients to find information they need on life insurance, disability insurance and long term care, along with cancer, accident and other ancillary insurance plans. We have even added quoting tools that an individual can use to find a plan in their budget. 

To make the process even easier we have even added our calendar to our website. When someone books a time for a phone appointment that works for their schedule, they can also let us know what they want to talk about. We have had some people say that buying an insurance policy from us was one much easier than expected. 

So as we look forward (instead of backwards) to a New Year, we hope that we will be hearing from you. Again, thank you for all of your referrals and I hope that your 2021 is the best year ever! 

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!