How Do I Get Free Money For Getting An Annual Physical?

Sometimes I feel as if I do nothing but discuss life insurance on this blog, when there are plenty of other kinds of insurance to talk about. Yes, from time to time I will write about the need for disability insurance (part of my "Holy Trinity of Insurance") as well as other plans, but I don't feel as if I'm doing them all justice. Especially when it comes to one of the best features on these policies.

Many of these "ancillary" or "voluntary" policies on the market, such as cancer plans, accident plans and critical illness plan, offer a "wellness" or "health screening" benefit.  These benefits give you the incentive to do what you should be doing anyway - getting a check up. The insurance company does not offer wellness benefits available out of the goodness of their hearts. Instead, if they can encourage their policy holders to have an annual checkup, the odds are good that if something is found, it will be caught early and be treatable, thus saving the company money when a claim happens.

Sales agents will use a wellness benefit as part of their presentation and rightly so.  For example, if someone were to purchase a policy that costs around $200* a year and they get back $75 just for getting a check up, the policy really cost about $125.  And if you are buying through payroll deduction and it qualifies to be pre-taxed, you're saving even more!

On those occasions when I do group presentations about these kinds of products, I let the employees know about the wellness benefits and how they vary from policy to policy. I also ask if anyone in the group has received their wellness benefits and hands go up. There's usually some chatter amongst the crowd about how easy it is to get that "free money" as they call it.

Of course, the important part is to remember to get a check up and file the claim.  Unfortunately, too many people fail to file their wellness claims.  Here are a couple of ways to make sure you get your money:

1.  If you have a plan through work, have your HR person keep "originals" of wellness claim forms in a file cabinet.  You can make a copy of it and remit to the company without having to call your agent. 
2. Many of the insurance companies have gone to an online claims process which is even faster and easier. 
3. When you do get a check up, let everyone know.  Inevitably, someone will say, "Did you file your wellness claim?"  Co-workers talk to each other.
4. When you set your appointment for your check up, set a Google reminder for your claim as well.

I work with one agent who owns every single type of these insurance plans. When he goes to the doctor for his annual check up, he "rings the register" as he files his wellness claim on each and every policy. He'll say things like, "I needed to get checked out, so I may as well make a few hundred on the deal." 

And the interesting part is that this agent, who is in his mid 40's, suffered a mild stroke a few years ago. While his major medical paid the majority of his doctor and hospital bills, his Hospital Indemnity plan paid a benefit directly to him which helped with his deductibles and other out-of-pocket expenses.

The good news is that you don't have to be part of a group to get one of these plans. We offer them on an individual basis for those who are self-employed or don't have plans like this offered through work. If you are interested in a plan like this, check out our website. You can run your own quote on cancer and accident plans as well as hospital indemnity. If you have questions, drop us a note. 

*These numbers are made up, but probably in the ballpark.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog! 

Wrapping Up Disability Insurance Awareness Month

Memorial Day is upon us, which is the day we recognize all of the men and women who served in our military and made the ultimate sacrifice. It is an important day and too many of us don't take the time to appreciate these people. If you have an opportunity to attend a ceremony, you will be happy you did.

As it's also the end of May, we can close the books on another Disability Insurance Awareness Month (DIAM), which is when the insurance industry promotes the importance of disability insurance. Unfortunately, disability coverage is not top of mine for most people. Part of this is due to misconceptions of why to buy it and what it does.

For example, most group disability plans cover a few weeks "maternity" coverage, immediately after a child is born. I have worked in some of these groups, like schools and municipalities, when the employee decides to drop her coverage because "I already had my kids." I try to plea with people to keep their policy, not because I'm will lose a commission (I'm on a salary), but because there are so many other times when that policy will be useful.

One of my old sales managers would tell us that when people hear the word "disability", they think of someone in a wheelchair who has been seriously injured in a car accident. The truth of the matter, however, is that over 85% of disability claims are for illnesses, with cancer being the leader in that category. (Heart disease and other cardiovascular illnesses are not far behind.)

Of course there are those people who do get injured. I spoke with a teacher in western North Carolina who had been in a car accident. Someone "t-boned" her car and broke her femur. She was out of work for four months while she went through physical therapy. Of course, her policy did what it was designed to do, which made her a strong advocate for disability insurance among her coworkers.

But what is your disability policy designed to do? Your policy is actually "paycheck" or "income" protection. If you were to get sick or hurt and were unable to work, your policy would help you pay the bills. And we all know that those bills don't stop coming just because you are a very nice person. 

There are those people who don't necessarily need a disability insurance policy. They may have passive income, like rental properties or other investments, that will provide some money to pay monthly bills. For most people, though, this is not the case.

If you have an employer who offers a disability policy, take a good hard look at it. And if you are a business owner, a contract employee or otherwise self-employed, you may want to consider an individual disability policy. They have a few differences from the traditional group plan but can be an integral part of your financial plan.

Have a great Memorial Day and remember those who gave all for our freedoms.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

3 Reasons Why Self-Employed Don't Buy Disability Insurance 2023

One of the most undersold insurance products is individual disability insurance (DI). The reasons for this vary, but many people think of disability as something they should buy through their employer as part of a group plan. There are around 15 million self-employed Americans, the vast majority of which do not have an individual disability policy. Why is this? Here are a few reasons why this is the case.

1.Business owners, contract employees and otherwise self-employed think that DI is expensive. The premiums of DI vary because of many factors. Your occupation is a huge factor in determining the rate you pay. In a nutshell, the more dangerous or labor intensive your job is, the higher your premium will be. It makes sense that a mechanic who works with heavy machinery will pay more than a banker who works behind a desk. 

Also, the amount of coverage you need will be based on your income. The more you earn, the more money you will need if you are out of work.

Even though the price may seem high to some, realizing that DI is actually insures their income helps people see the actual value of the coverage. I ask clients what their greatest asset is and get answers like their car or home. Then I point out that their number one asset is their ability to earn a living, which makes one able to purchase the car or home. That's when they see the value of DI.

2. The application and underwriting process seem difficult. An application for DI is just a bit more involved. Like life insurance, there are health questions. Additionally, there are questions about income and the type of work one does (see above). Some insurance carriers will want to verify income at the time of the application, usually by obtaining tax records. Other companies will do this at the time of a claim. 

As a self-employed person, your income can vary from year to year. I discussed this with one claims rep from a company I represent. She understood completely and said, "We just want to make sure this person was working when they filed a claim." 

A few years ago I had a client who was a personal trainer. The application included a question which asked something like "Does your job entail heavy lifting?"  I had to write an additional letter to the underwriter that the client had to lift weights to demonstrate to his clients proper form. After much confusion the policy was eventually issued.

3. Agents don't always understand it either. I'm not trying to throw anyone under the bus here. As a matter of fact, this is one of the reasons why I personally don't do a lot of Medicare supplements. I would rather refer that out to another agent in our brokerage who understands the product and sell what the clients needs. 

I have met many good life and health agents who just do not feel comfortable selling individual DI policies. There are too many "moving parts" they say. Or they just don't understand how the policy works with Social Security disability, therefore, they can't explain it properly to their clients. Find an agent who is familiar with the product.

If you are self-employed, an individual DI policy may be a great way to make sure you can pay your monthly bills in the event that you are sick or hurt and unable to work. Let us know if you have questions, and as usual, please stay healthy!

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!