How Do The Self-Employed Get Benefits?

I am very comfortable working in the group benefits market. Helping people who work for large companies, school systems and municipalities has been part of my world for nearly 20 years now, and making sure they have the right benefits is a task I welcome.

At the same time, I focus the majority of my efforts toward those people who don't have a large corporate employer. As a 1099 contract employee, I realize that it is up to me to find my own affordable benefits that will help me and my family in the event I should get sick or hurt, or worse, die. That is why I enjoy helping other business owners, entrepreneurs, sales professionals and the otherwise self-employed get the coverages they need.

There are a few differences in the types of products available. Those large group products have less underwriting, and in some cases no underwriting. "Guaranteed issue" means that the insurance will cover a person with no questions (except tobacco usage). "Simplified issue" is another option, which means there may be just a few health questions. Those "knockout questions" will decide whether or not a policy gets issued. One "yes" can do you in.

But policies that are issued on a guaranteed or simplified issue basis typically take on more risk, and that risk is passed on to the employee of the group in the form of higher premiums. One of the tricks agents us when selling in the group insurance field is to quote the premium based on pay frequency. If you are paid weekly, $10 each week sounds a lot better than $45 each month. 

For the rest of us, having to find coverages that aren't deducted from our checks can be overwhelming and daunting. It doesn't have to be that way though. Use a couple of our tools and watch our product videos to see what is available and how these products work. 

Let's look at a few of these insurance products.

• Life insurance. We suggest that you take a look at affordable term life insurance while you're working, but maybe also get a small permanent policy for final expenses. For our younger clients we offer a term life insurance policy that will carry them out to age 65! And there is no medical exam* for policies under $250,000. 
• Individual Disability insurance. This should be called "paycheck insurance", because that is the purpose of this policy. When trying to determine how much coverage you should apply for, I suggest the "H.U.G." method by figuring out much monthly expenditures are for housing, utilities and groceries. (Note: individual disability policies generally don't cover maternity unless the doctor deems it necessary during the pregnancy.)
• Business Overhead Expense insurance. This is another version of the previously mentioned Disability insurance, but the benefits cover the bills of your business, not your personal bills. If you rent an office, have utility and payroll expenses, this plan gives you the time to think your options over if you get sick or hurt and are not able to work. You may recover, retire or sell the business, but you won't be rushed into a decision.
• Cancer insurance. I have found that when working with large groups of employees, cancer plans are popular through word of mouth. If one employee is diagnosed the other staff members realize how expensive the out-of-pocket costs are. We have a couple of different options for cancer insurance, one being a traditional reimbursement plan, as well as a lump-sump plan. Both can cover deductibles and co-pays and offer a wellness benefit. (One of our plans also covers several other diseases as well, like meningitis and tuberculosis.)
• Cancer, heart attack and stroke insurance. These plans give you the option to choose if you want coverage for one, two or three types of illnesses.
• Accident insurance. Coverage for any type of accident, from cutting your hand and needing a few stitches to serious automobile wrecks. As long as you get some medical attention these plans pay a benefit. Great for active people or if you have kids who play sports.  

If you are interested in learning more about these products, visit our Products and Quotes page from our website. There you can run your own quote for life and disability insurance, as well as watch some short videos about some of our other products. If you have any other questions, leave us a note on our contact form or book an appointment for us to give you a no-pressure call.  In the meantime, stay healthy!

*Medical records will be requested and may result in some clients needing an exam. 

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! 

My Personal Long Term Care Story Part 2

In my previous post I told the story of my aunt who spent 22 years in a nursing home after breaking her hip. Since her adult children were in no position financially to pay for her care, my parents took the reins. The financial part of her care was draining, but so was the emotional segment. Frankly speaking, my parents were burnt out.

When my aunt died, my mother called me and broke the news in a very somber voice. Knowing exactly what she was thinking I asked, "Do I hear dad in the background dancing a little jig?" Two decades of financial burden was finally off his plate.

My mother chuckled and said, "Shut up. We're supposed to be sad." She was sad at some level but at that moment she was glad that it was over. 

As I mentioned previously, soon after this I approached my parents about purchasing long term care insurance. Surely they would see the need after all they had been through, but that wasn't the case at all. In fact, my father was adamantly against the idea. "I'm not trying to make a sale, I'm trying to avoid going through all this again," I pled , but he wouldn't listen. "I don't care if you buy a policy from someone else, just get a policy!" I said.

Within a few years, my mother, who was now in her seventies, was in need of a knee replacement. At some point during or after the surgery she had a small stroke. The two week rehab became six weeks of rehab.

The stroke also triggered dementia. When she returned home, she insisted that family members, who were long dead, were at the house and she was going to serve them dinner. My father, who had refused my help in getting a long term care insurance policy was her caregiver. Over the next five years they settled in to a routine. I would drive two hours on the weekends to visit, sometimes with my own family, and sometimes not. It was all very stressful, as my father, I discovered, was a micromanager. 

My mother's health declined slowly over the years and my father wasn't doing much better. He developed a twitch in his hand and refused to discuss it. His weight dropped as he tried to manage the household, which he wasn't very good at doing, while driving my mother to her various appointments. Occasionally, he would ask me to fill in while he took care of his own medical issues. 

About five years after her stroke my mother had a health setback, which was looking pretty dire. That's when my father told my sister that "Maybe I need to look into that insurance your brother tried to talk to me about." She had to explain that it was too late, no insurance company would accept my mother's application. 

Seven months later my mother passed away. Now all of the attention was refocused on my father, who would later disclose that he had already been diagnosed with Parkinson's Disease. 

He insisted on living alone, and let it be known to anyone who would listen that he wanted to be left alone. My sister and I made attempts to help, which he only accepted when he was desperate. After a series of falls we intervened, saying that he needed to either go to a facility or have someone stay with him. He settled on a home health agency which was approximately double the cost of a facility. 

When I asked him how he could afford the home health care, he said that he still had the rental income from the properties my mother had inherited, along with his pension. Unfortunately, he also had more expenses and debt that he didn't let us know about. To make up the difference, he was dipping into his home equity line. We didn't know about that part of his finances until his death earlier this year. 

One of my regrets is that I was never able to convince my father that there was value in long term care insurance. Friends and family, who still acknowledge that he was very "difficult" man, try to tell me that I did my best, but as an agent, I failed in my job. 

Nowadays, we have long term care policies, life insurance policies with "living benefits", and short term home health care policies, which would have helped my parents immensely, if they had been open to the idea. If you don't want to be a burden to your family, take a serious look into these options. 

With Covid taking it's toll in facilities, home health care is more important now than ever. If you have a family member in your care, take precautions, wear a mask and wash your hands, like we've been told. Please be safe and enjoy your holidays with your loved ones so you can enjoy them next year as well. 

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! 

Do I Need An Out-Of-Pocket Protection Plan?

As we are in the middle of open enrollment for ACA (Obamacare) plans, we are seeing that many individuals are selecting higher deductibles, fewer copays and more out-of-pocket costs to make their health insurance premium more affordable. These out-of-pocket costs may still cause unnecessary burdens to many people. 

As a matter of fact, the number one reason for bankruptcies in the country is medical expenses, with the percentage being estimated at over 60%. In 2015 the Kaiser Family Foundation found that medical bills caused 1 million adults to declare bankruptcy. The same survey also found that 26% of Americans between the ages of 18 and 64 struggled to pay their medical bills. 

When a family member has a medical condition and has to go to the hospital, they don't need added financial burdens. Our new Out-Of-Pocket (OOP) Protection Plan* is designed to help pay some of the costs that most families will experience from higher deductible plans with fewer benefits. 

Having a policy that covers out-of-pocket expenses for hospital stays could not come at a better time. The news is filled with statistics of Covid cases on the rise, and hospitals filling their rooms. Because of this, we have had an increase in interest for plans like this. 

  This plan pays directly to the policyholder. There are no networks nor deductibles. Even filing a claim is simple. And the benefits are paid directly to you in one lump sum, not the hospital or the doctor. Plus the plan pays in addition to any other insurance and workers compensation.

The best part is that you can choose the benefit and premium. For example, you can decide what amount of benefit you would like for your daily inpatient hospital confinement benefit. Next, you decide on how much you would like for your first hospital admission benefit. Included in this is a $50 benefit for doctor office visits (2 each year). 

There are also optional benefits, like an outpatient surgery benefit (limited to 2 a year) and an emergency accident benefit (limited to 4 per year).  It even covers maternity as any other illness. Not many plans do that!

You probably would like to know how much a plan like this costs. The best way to find out is to run a  your own quote which you can do by clicking here. You can cover yourself, you and a spouse, you and your children or the entire family. 

If you are trying to save money by choosing a high deductible health insurance plan, be aware that one hospital stay can burden your family's finances. By having a policy to cover those deductibles, copays and coinsurance costs can keep you afloat when you need it most.

People don't plan on being admitted to the hospital, much less having to be confined for a week or more. Those out-of-pocket costs will definitely be there when you are released from the hospital, but what about your other bills? For those of us who are self-employed, spending days in the hospital means not working, and not working means not making money that pay our usual bills. Housing, utilities, groceries and car payments can add up quickly if you don't have the money. As I mentioned earlier, this plan pays you so you can take care of those monthly obligations. 

If you have questions about this plan or any of our other insurance plans, please leave us a note in the comments section below, or go to our website at www.SurfFinancialBrokers.com and book a phone appointment. In the meantime, please stay healthy! 

*Not available in Virginia

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!

What Makes Life Insurance Rates Different?

A few years ago I met a young woman who was married and had two young boys with a third child on the way. She was a server at a local restaurant and I was there at the request of the owner to talk to the staff about various insurance products. The server, who I will call Sue, asked me about life insurance coverage on her husband. She was very concerned because she felt her husband worked a dangerous profession and she did not want to be left with three kids to take care of on her own if something were to happen to him.

I asked Sue some basic questions like her husband's age and general health condition. "He's healthy as a horse, but stubborn as a mule, especially when it comes to life insurance," she said. "He wants to get a policy through his work, but I know we can get it cheaper elsewhere." 

She was right. Sue had done her homework and figured they needed at least $250,000 in life insurance coverage for her husband. At his age, the policy he wanted to get through the "worksite" insurance company was going to cost around $70 each month. When I ran a quote for her the same policy was less than $40 each month. 

I sat down with the two of them a few days later and presented my illustration. She knew it was a good deal and appreciated the savings I was offering. He, on the other hand, argued vehemently against it. At first I couldn't understand what his objection was. Sue was getting visibly upset with him while he acted as if I was taking advantage of him. 

After a painful hour of this I asked him what would make he want to pay close to double for the same policy. He said, "I don't want to have to worry about having that $40 in my bank account each month. I'd rather they just took it out of my paycheck!" Sue, furious at him at this point, looked at her husband incredulously. 

"So this is about convenience?" I asked. 

"Yes," he said meekly. I had heard this argument before, but Sue didn't understand it. Needless to say, I didn't get the application. The tension was palpable as I packed up my papers. Sue apologized for her husband's behavior. 

People are funny sometimes. They are willing to pay extra, and in this case nearly double, for the weirdest things. I had heard the "convenience" argument many times before, so it wasn't new to me. "If they just take it out of my pay I don't have to worry about it," has been the refrain of many people. 

So why was the price of that "convenient" policy so much higher than the one I offered? In a nutshell, it had nothing to do with convenience but everything to do with underwriting. 

You see, I spent a year selling working with the same company that was offering his payroll deducted coverage. The policy Sue's husband was wanting was "simplified issue", which means that the application just had a few health questions. No medical exam, no blood or urine specimen and probably no request for medical records. That puts a lot of risk on the insurance company, and that risk gets passed along to the consumer in the form of higher premiums.

On the other hand, if an insurance company requires a paramed exam, along with requesting medical records from the applicant's physician, that carrier's risk will drop dramatically. And with that decreased risk comes decreased premiums. 

This made sense to me years later when I worked for another insurance company and our manager called a 10-year term policy a "sucker bet". He explained it like this. "A fully underwritten life insurance policy will require an exam and medical records. If nothing shows up from there, the odds of the person dying in the first five years of the policy are extremely low. Basically, the company is collecting premium for 10 years when they are only insuring the last five years of the policy."

Underwriting can find potential risks and problems, thus weeding out those potential early claims. For example, I had a guy apply for a policy who was declined because his liver enzymes were very high. The client was surprised to hear this and I recommended he go to a doctor. Sure enough, he found out he needed a transplant, but it was too late. He passed away a few months later.

As for Sue and her husband, they split up not long after I met with them. She told me he was too hard headed for her and has since remarried. She and her new husband have plenty of life insurance and she has peace of mind.

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!

Long Term Care Awareness Month In the Midst of Covid

November is Long Term Care Awareness Month and Surf Financial Brokers is here to help you understand why planning for your Long Term Care (LTC) is important. And even more so in a year when Covid_19 has ravaged our nursing homes and other facilities housing the chronically ill, as well as their staffs. As we have all seen on the news lately, planning can make the difference between dying alone in a facility or dying at home with access to loved ones.

I'd like to share with you some interesting numbers.* 

• Average out-of-pocket costs are $140,000 for people who use paid LTC services, and almost 9% will spend over $250,000.
• About 7.5 million people have LTCI coverage, and LTCI issuers paid about $11 billion in benefits to about 310,000 claimants in 2019.

And with the cost of care increasing each year, many people aren't sure if they can afford to be in a facility. if they may need a LTC insurance policy or what other options are available. 

When you include Covid into the mix, it makes planning more confusing. COVID-19 has  already killed at least 60,000 U.S. nursing home residents, and it appears to be increasing nursing home mortality levels by at least about 20% over the usual levels, according to nursing home Covid impact data collected by the Centers for Medicare and Medicaid Services (CMS), the agency that oversees Medicare and Medicaid.

Needless to say, the virus has changed the landscape and how people plan for their LTC needs. But what are your needs if you were to look at the future from now?

Unfortunately, younger people generally don't consider being chronically ill, until they see it happen to a parent or grandparent. This is usually when they realize how expensive care is, not to mention the wide variety of facilities and other options. LTC planning should be a part of the retirement planning process, as they are not mutually exclusive.

How does one handle the problem of the high costs associated with being chronically ill? First, there is traditional long term care insurance. It can be pricey as you get older and the companies reserve the right to raise your premiums, but these policies will also include some extra features like respite benefits for caregivers and can help pay for care in a facility or in the home. 

The number one objection I hear when showing a long term care policy to a client is "What if I die before I use it?' It's a reasonable question, as the premium cost can be high. One option is a Return of Premium (ROP) rider, which would, as the name implies, return premiums not used to the insured (or their beneficiaries) if they don't use the policy. Unfortunately, this ROP option is nearly as expensive as the actual policy and I have rarely had anyone ask for it.

The other option is to purchase a hybrid policy, typically a life insurance policy with either an LTC rider or "living benefits", which allow the insured to use the policy for their LTC needs. If they die before needing care, the life insurance just pays out. This has become a popular option, especially for younger clients. And we have one company that has begun including this into their term life policies.

The last option is Short Term Home Health Care (STHHC), which pays if you are receiving care in the home. One of the misconceptions we find is that in-home care is cheaper than a facility. This may be true if family members are the caregivers, but if a private company is brought into the home, the costs can be nearly double of a facility. 

A STHHC policy can help you stay in your own home for up to 365 days, which don't necessarily have to be in a row. This is a great option for people who are concerned about Covid in nursing homes and assisted living facilities. The policies are very affordable but the applicant must be a minimum of 61 years old. 

If you have questions about LTC planning, let us help. Drop a note on our website or book an appointment for a quick phone call. 

*Figures are from the American Association for Long-Term Care Insurance (AALTCI)

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!

6 Term Life Insurance Issues To Be Aware Of

For years there has been a debate in the financial services industry over which type of life insurance people need. One side says to "buy term and invest the difference" while the other says that cash value life insurance is a safe way to lock in a rate and let your money grow. I'm not going to argue the pros and cons of either in this post because I think that it really depends on what the client's situation is. In other words, despite the financial gurus who like giving generic advice, I prefer having a discussion with a client to find out what their needs are.

With that in mind, this post will be about term life insurance and things to be aware of when purchasing it. Here are a few things to keep in mind when buying a term life policy.

1. Make sure you're buying enough. That small policy that is offered to you through work probably isn't going to be enough coverage. Take into consideration things like the balance of your mortgage, replacing your income, paying off credit cards and other debt (like car payments). If you have children, include education costs. In other words, make sure that your family can continue to comfortably live in their home, without worrying. 

Also, if you have a 2-income family, make sure to insure both spouses. Those two incomes are typically combined to pay the bills. When determining how much you need to replace income, a simple formula is to take your annual income and multiply it by 10. It may sound high, but it is realistic.

2. Don't wait too long to buy life insurance. By putting off a life insurance purchase, you are actually paying more in the long run. As you age, your premiums increase, so waiting five years to buy a policy will actually cost you more. More importantly, you can leverage your good health by getting coverage when you're younger. Odds are good that you will not be any healthier in the future as you are now and it only takes one health event, such as a heart attack to leave you either uninsurable or with a rate that is out of your price range.

A friend of mine, who is in his early 40's, recently had a mild stroke. Luckily he had coverage in place, but if he didn't, the chances of him getting another policy would be difficult and probably out of his price range.

3. Don't buy too short of a term. Unless you have a specific need in mind, like a 10-year note that needs to be secured, you should be looking at longer term periods. Consider how many years it will take to pay off your mortgage and get the kids out of the house (they may "boomerang" back). A 20 or 30 year term may be what you need. We even offer a term policy that locks in until age 65, which may be the perfect solution for a younger couple. 

4. Be careful with riders. The majority of policies have different riders you can add to your policy, such as a disability rider or accidental death. I personally think that a disability waiver of premium rider is a great value, because it continues to pay your premiums for you if you are deemed "disabled" and can't work. The last thing you need in that situation is your life insurance pulled out from under you.

Depending on the carrier, some riders will be included at no charge, such as accelerated death benefits. We have a term life policy that includes a chronic illness rider with no extra charge. 

5. Review you policy every few years. The fact is that as time passes, your financial situation may change. If you bought a policy 10 years ago, you may now have a totally different status. You may have received a raise, relocated, had twins, or become fabulously wealthy. 

Also, making sure your beneficiaries are up to date is very important. If the individuals you have chosen are deceased or no longer in your good graces, you can replace them at any time. 

6. Find a policy that is convertible to a permanent policy. The convertibility option of a policy is important because your term policy will eventually run out. Having the option to convert your policy to a permanent policy without any health questions makes sense in case you have some change in your health status. 

Term life insurance can be affordable and can be great helping your family if you were to die too soon, but keep in mind that the vast majority of term policies never pay a claim because the term expires before the policy holder. If you have questions or concerns look us up on website and book an appointment to discuss your needs. 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! Thanks!

2 Easy Steps To Get Insurance During Covid

With Covid_19 in the news for the last few months there has been a surge in the number of people interested in differing types of insurance. Our "Covid plan" is nothing more than a list of insurance products that are garnering the most questions from people of late. These products are:

• Life insurance. As we see the death toll rise from the virus we have also learned that it's hitting closer to home as friends and family members are affected. Having a life insurance policy in place can give you the piece of mind to make sure your loved ones are able to pay for final expenses as well as being able to stay in there home. A large number of people in this county either have no life insurance or not enough. We can help you find out how much you need and try to keep the premiums in your budget.   Not sure how much coverage you need? There's a button on our quoting site that will help you for that too.
• Disability insurance. As the cases rise, so do the number of people who are not able to work. Being sick is stressful enough, so don't add extra stress by not being able to pay your bills. Insure your paycheck with a disability policy. 
• Hospital Indemnity. If you get the virus and are admitted to the hospital, that can cost you a lot of money. Deductibles and coinsurance can deplete one's savings and many people of all ages will dip into their retirement account or using a credit card. With a hospital indemnity plan, you can cover the costs of being admitted and confined to the hospital.

These are three great ways to reduce the risk of financial problems should you get ill from the virus. And we have made it very easy for you to get a quote and start the process in just a couple of steps.

Step 1. Run your own life insurance and disability quotes right from our website. Click here to run a quote for whole or term life insurance, as well as disability insurance*. If you would like a price for our hospital indemnity plan, click here to run a quote*.

Step 2. Start the application process. After booking your own appointment that works with your schedule, we'll give you a call and take your application right over the phone. The call will take a few minutes to get your information and your application will be sent immediately to one of our underwriters. 

We know that you are concerned about the virus and want to keep your family as safe as possible by social distancing. By taking your application over the phone you don't have to worry about an agent coming into your home and in most cases, a paramed nurse is not necessary either.  That makes the whole process much easier and less stressful.

The pandemic continues to spread throughout our nation, as well as globally. As we look forward to a day when we can get back to our normal lives we have to stay vigilant. Staying healthy should be a top priority for everyone, but making sure that our personal financial situation remains healthy is important too. Let us know if we can help you and please, stay healthy!

*Remember that quotes are estimates and not guaranteed premium prices. All rates 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! Thanks!

It's Open Enrollment Time

It's that time of year again when a lot of people are making changes to their various medical plans. The choices you make during open enrollment will be affect how much your medical bills will be next year, unless you are fortunate enough not to have any. 

This past February I experienced my first major health event and spent nearly a week in the hospital. The hospital bill was around $75,000, with my major medical insurance picking up the tab for most of it. A small change in my open enrollment strategy could have cost me a great deal more and set me back financially. 

This is the struggle during open enrollment.  Trying to predict what your medical bills will be is nearly impossible, even with my Magic 8 Ball. I had always been a fairly healthy person, so being admitted and confined to a hospital was not in my gameplan when trying to decide which medical plan I would go with. I was just trying to find a policy that I could afford.

That is why it is so important to have some good supplemental plans at your disposal. Premiums for medical insurance go up each year. Medical inflation outpaces all of our other bills. Having a good disability plan or other coverage in place can help you if you are left with high deductibles or copays.

People will sometimes ask why I think it's so important to have more than life insurance and health insurance. My response is as follows: Health insurance won't pay all of the bills if something serious happens.  Add to that the fact that people generally don't have enough life insurance to cover all the expenses their family will have if they die. Supplemental (or voluntary plans, as they are known) can help you fill in those gaps. 

To this end, I am a huge proponent of supplement policies, not just because I sell them, but because I own them myself. I personally know the value of a Hospital Indemnity policy. I have a cancer plan on my family because I know that the out-of-pocket expenses are extremely high. My disability insurance policy will help cover my bills if I am sick or hurt and can't work. 

I don't want my friends to have to set up a GoFundMe page because they don't have the money to pay their bills. But I do want my friends (and clients) to have a good accident insurance policy so I don't have to contribute to their crowdfunding when they get hurt.

These plans all have a place and none will break my bank account. However, not having an extra policy or two in case of a serious illness or injury could destroy your family's finances. The vast majority of bankruptcies in this country are caused by major medical events. According to CNBC, 137million Americans were struggling with medical debt in 2019. And TD Ameritrade found that medical expenses are the number one reason why people of all ages cash out their 401(k)'s or other retirement savings. 

The majority of these types of plans are sold through the workplace, with employers deducting the premiums from the employees' paychecks. For those of us who are business owners, contract employees and otherwise self-employed, Surf Financial Brokers has comparable plans that can be purchased on an individual basis. And we can take your application right over the phone. Check out our website and book an appointment that works for you to make sure you have this valuable coverage. 

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!

How Do I Cover Out-Of-Pocket Medical Expenses?

With Covid in the news so much, we have had a spike in interest regarding the various supplemental plans we offer. Even though medical insurance pays the majority of the hospital and doctors' bills, there are still a lot of expenses that are not covered. Deductibles and coinsurance just two of examples. We recommend you take a look at your medical coverage when enrolling and check to see what your Out of Pocket (OOP) maximum is during the plan year. 

The OOP is the amount you could be on the responsible for if you were to be seriously ill. Earlier this year I was hospitalized for nearly a week when my pancreatitis flared up. Beside the physical pain I was having (it really hurt!) I knew there was going to be some financial pain as well. My OOP was around $4500. 

Many people have chosen medical plans with high deductibles to keep their premiums low, but they haven't considered how they will pay for those deductibles if they are hospitalized. Sure, you can call the hospital or other provider and work out a payment plan, but it would be much easier to have an insurance policy that can pay those out-of-pocket costs.

This is the time of year when many people are making changes into their medical plans. Open enrollment gives us an opportunity to made adjustments that fit into our budgets.

 

There has been a misconception that we have to work for a company to be eligible for group supplemental plans, but that's not always the case. A large number of individuals who are business owners, contract employees, or otherwise self-employed, can still have access to some great policies that will help cover those bills that their major medical does not.

We have options like our Hospital Indemnity (HI) plans, which give you extra money if you are admitted and confined to the hospital. As mentioned earlier, interest in these plans has increased due to the pandemic. And you can tailor the plan to give you the coverage you need. 

These plans pay directly to you, not the doctor or the hospital, so you can use the money as you need. There are no networks involved, so it doesn't matter where your received care. And these plans pay in addition to other insurance and workers' compensation plans. 

When you apply for an HI plan you can choose amounts for being admitted to the hospital, as well as daily confinement benefits. There are also optional riders for serious accidents and outpatient surgery. That flexibility lets you customize your plan to be affordable for you.

Filing a claim is easy as well. After leaving the hospital, simply fill out the forms and attach any medical receipts. 

During these crazy times when the Coronavirus is in the news each day, we see hospitals filled to capacity all over the country. Record numbers of cases remind us that anyone can get seriously ill, and not necessary from Covid, but from other ailments, like heart disease, cancer and strokes. And of course, serious accidents can also be costly. That is why we have health insurance in the first place. Making sure we can cover our health insurance premiums is tough, but trying to cover those extra expenses can be even tougher. And trust us when we say that not everyone wants to contribute to a GoFundMe page.

Let us help you with keep those out-of-pocket expenses low 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!

Why Purchase a Cancer Insurance Policy?

Cancer has touched the lives of so many people, either by being diagnosed with the disease, or having a family member who was diagnosed. With Covid-19 dominating the news of late, people have been distracted. But with the recent deaths of prominent celebrities like Eddie Van Halen and Chadwick Boseman, the disease has been come back to the attention of the country. 

The American Cancer Society estimated there would be more than 1.7 million new cancer cases diagnosed in 2019. Approximately 39 out of 100 men and 38 out of 100 women will develop cancer during their lifetime. These numbers should make people take notice that anyone can be at risk.

According to the Agency for Healthcare Research and Quality, the direct medical costs for cancer were an estimated $80.2 billion in 2015. Of those costs, 52% were for hospital outpatient or office-based provider visits, and 38% were for inpatient hospital stays.

These report estimates are based on individual cases, but the reality is cancer affects entire households, not just an individual. Extended time off work, family members becoming caregivers, outside caregiver expenses, medical bills - cancer affects us physically, emotionally, and financially.

I've shared the story in a previous post about the man in my area whose child was receiving cancer treatments two hours away from their home. The family was close to having his power shut off because he wasn't able to work due to the traveling back and forth. Luckily, the man's employer realized at the last minute that the man had purchased an all but forgotten cancer plan a few years earlier and helped restore the man's finances.

Cancer insurance policies can help keep the out-of-pocket costs down so that you can focus on what matters most to you. With this in mind, Surf Financial Brokers has looked for quality cancer insurance plans to offer to our clients in North Carolina, South Carolina, Virginia and Tennessee. One of these plans is offered through Manhattan Life Insurance Company and has some great features. 

What is a Cancer Insurance Policy?

A cancer insurance policy can provide coverage for services major medical plans may not cover.

What Cancer Insurance Policy Solutions does Manhattan Life Offer?

Manhattan Life offers “Cancer First Occurrence” and “Cancer Care Plus” insurance.

Cancer Care Plus and Specified Disease Insurance Benefits

• Guaranteed Renewable for Life
• Cancer screening test
• First Occurrence Benefit Rider
• Daily Hospital Confinement Benefit
• Surgical Benefit
• Radiation and Chemotherapy
• Hospital and Other Care Facility Benefits
• Optional Intensive Care Unit and Critical Care Benefit Riders*

Cancer First Occurrence Insurance Benefits

• Guaranteed Renewable for Life
• Payment is made directly to you upon an initial cancer diagnosis
• Choose a benefit amount up to $50,000
• Family Plan option – pays the same FOB benefit for each covered family member
• Optional Intensive Unit Care and Cancer Screening Benefit Riders*

*Optional benefit riders have state variations and may not be available in all states

This estimate is from the American Cancer Society’s “Cancer Facts & Figures 2019” and includes all cancer types except basal cell and squamous cell skin cancers and in situ carcinomas except urinary bladder.

These estimates are based on a set of large-scale surveys of individuals and their medical providers called the Medical Expenditure Panel Survey, the most complete, nationally representative data on health care and expenditures. Visit Medical Expenditure Panel Survey (MEPS) for more information.

While your medical insurance pays the bulk of the hospital and doctors' bills, a cancer insurance policy can help you with the out-of-pocket costs associated with being diagnosed with cancer. Deductibles and coinsurance just part of the expenses. There may be other expenses like travel and lodging, not to mention lost income from being out of work. It can all be a financial drain on a family's resources. 

A cancer insurance plan can be very affordable. Don't wait until it is too late to apply for a policy. Book an appointment with us to discuss this valuable coverage. 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!

Is My Agent Looking Out For My Best Interest?

A few years ago a friend (whom I'll call "Bill")  heard I was selling insurance. Bill and I hadn't been in contact for a few years as he had moved out of town, so getting a call from him was a bit unexpected. We chatted briefly and then he gave me his personal situation. Bill was doing well financially with a successful business, was considering getting married and had a few investments here and there. We discussed my practice and what I offered.

Then he asked, "What's the best insurance plan you have?" 

Knowing he was an analytical thinker I replied with, "What are you trying to accomplish?" 

He laughed and said, "That's the answer I was looking for. If  you had blurted out a specific product I'd know that you were probably looking out for you instead of me." He suspected, and perhaps rightly so, that a life insurance agent would push the product that would pay the highest commission. 

When someone calls in and asks for a specific product, say a 20-year term life insurance policy for $150,000, I know that they probably have done some research. I may ask a few questions to make sure it's what they need, but I do my best not to pressure someone. They have a need and a budget and I do my best to keep them happy. 

On the other hand, if you have an agent who aggressively promotes one insurance product constantly, they are not looking at your "big picture" holistically. A good example is the financial "advisor" who only pushes annuities. The commissions on these can be big and agents like to sell them because there are no health questions. Herein lies the problem. Not everyone needs an annuity, but the agent will make it sound like everyone does.

One of my former coworkers at a life insurance agency loved to take applications on clients who were tobacco users. He said it was a "premium enhancer" because their rate would increase, thus making his commissions go up as well. I watched him one day as he was getting basic information from a client. He asked if she smoked and she said that she did. "Good for you!" he said enthusiastically and patted her on the back.

On another occasion, a client answered that she did not use tobacco. He frowned a bit and said, "Too bad, all the cool kids are doing it." He tried to make it a joke, but I got the feeling he was disappointed in the client's good habits.

All of this leads back to that dirty word, "commissions". Unfortunately, people hear that word and think that someone is trying to take advantage of them. And yes, the higher the price of a policy, the more I make, but it's true in other professions too. 

Realtors work off of a percentage of the sale, but that doesn't mean I don't trust them. As I'm currently working with a realtor to sell some property I can say that he has gone above and beyond the call of duty and has put in a lot of hours. Having a rough estimate of what his commission will be doesn't give me pause. I know he's working in my best interest. 

I have learned from experience that when I can satisfy the client with my work I'll get referrals, which leads to more clients. And that is how I make my living, by looking out for the client, not my paycheck. 

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!

Long Term Care and Covid_19 Options

Earlier this year when the Covid_19 epidemic began to invade the country we learned that long term care facilities were being hit hardest by the virus. With the elderly residents already sick, the disease infected not just the patients, but the caregivers and other staff members as well. 

Keeping this in mind, people still need to plan for their care when they will eventually become chronically ill. We all want the pandemic to come to an end as soon as possible. But if it doesn't, do you have a plan in place?

As I have mentioned in previous posts, there are three stages of retirement for most people. I like to call them the "go go" years, the "slow go" years and the "no go" years. Unfortunately, when we think of our retirement, we have images of travel, visiting grandchildren and relaxing on a cruise ship. That would be the "go go" years. They don't always consider the other two stages.

As we age and our health begins to fail, we slow down. We stay closer to home and travel less. Sometimes, those years can even include being a caretaker for a sick family member. If you have never had to take care of someone else who is chronically ill, believe me when I say it can be one of the most difficult and stressful jobs ever.

Finally, there are the "no go" years, in which we are the ones receiving care of some kind, be it in a skilled nursing facility, assisted living facility or even a non-medical "senior community".  None of these options are anyone's first choice and all can be very expensive. And all are currently under scrutiny due to the virus.

Of course, the option every person would love to choose would to be at home. I have discussed my own father's refusal to go into a facility, even though he needed care around the clock. His Parkinson's was causing him to fall often and eventually led to us having to hire a home healthcare agency.

And as facilities are expensive, so is home healthcare. Having a couple of caregivers live in the home with my father was approximately double the cost of a nursing home or assisted living facility. He assured us that he could cover the cost with his pension and some rental income, but he fell short each month. When he passed away, we learned he had been dipping into his home equity line each month. 

What does someone do who wants to plan for the "slow go" years in this situation? Given that we can now acknowledge that facilities may not be a first choice, we think more people will choose to stay at home with a family member, a hired caregiver, or a combination of the two. 

This is why our Short Term Home Healthcare (STHHC) plan has become so popular in recent months. These plans*, which are available to those over 61 years old, are affordable and easy apply for. There are only three questions on the application and it can all be handled over the phone. To see a short video describing the STHHC plan, click here. 

Let us help you navigate the waters of your long term care planning. Visit our website to book an appointment and in the meantime, please stay healthy!

*Plans are not available in all states. Contact us to see if STHHC is available where you live.  

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!

Keeping Those Supplemental Benefits

I have spent a good portion of my insurance career working in the worksite benefits arena, helping people choose which insurance plans are best for them and their families. The employers decide which plans they want to offer and then we, as benefits counselors, sit down with the employees individually to discuss the different types of coverage. These ancillary or "voluntary" insurance products are deducted from their paycheck and the employees appreciate the convenience of it, but also are aware that their take home pay will be lower.

Many times the menu of coverages includes insurance policies for disability, cancer, hospital indemnity, accidents, critical illness, heart and stroke, and of course, life insurance. The employees can opt to cover themselves, a spouse, children or the entire family.

One of the many factors that the employees like is the "portability" of the policies, which means that if they leave their job they can take the coverage with them. And herein lies the rub. 

Not everyone leaves their job for greener pastures. Some may decide to move on to open their own business or to retire with a pension. For those people portability is a good thing because they probably can afford to continue paying those premiums on their own.

As we have seen with the Covid_19 epidemic, others may be laid off, fired, furloughed or just quit. For these folks, losing a paycheck may be the end of their coverage, as they probably will not have the funds to keep paying for those extra coverages. 

One of the issues here is that when these people originally purchased these plans, they were quoted premiums based on their pay frequency. In other words, if someone is paid weekly, the agent would say that a cancer plan is $6 each pay, because that is how much is coming out of their check. That doesn't sound as bad as $25 each month and most people don't do the math. 

A few weeks after the employee loses his or her job, they will get a notice in the mail asking them if they want to continue the coverage with a couple of options. One option is to have the premiums drafted out of their bank account or paid quarterly. Using our example above, the person who is now unemployed is being asked to write a check for $75. If they have not yet found another job, that money probably won't be in there budget either.

Another issue here is that many people simply do not have jobs that offer these benefits. For those individuals, who like us, are self-employed, small business owners or contract employees, voluntary benefits are not available. 

With this in mind, we have decided to begin offering our menu of supplemental policies on an individual basis. It doesn't matter if you run a business from home or out of your car. Everyone can now apply for coverages they want or need. A few examples are:

• Disability insurance - Business owners are usually working longer hours, no matter what the profession. If you are out of work and can't work, those bills don't stop coming in.
• Hospital Indemnity - These plans cover you for being in the hospital. With Covid_19 in the news lately people have started to express more interest in this plan.
• Cancer - We all know someone who has been affected by cancer and for many people a good cancer plan gives them peace of mind. 
• Accident insurance - If you are active, work a physically demanding job or have kids who play sports a good accident plan can help you with sudden out-of-pocket expenses.

When it comes to price, none of these insurance plans are going to break the bank. Head over to the Surf Financial Brokers website and check out our list of products. A few even have short videos explaining how they work. In the meantime, if you have questions about them, let us know. 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!

The Surf Financial YouTube Channel

As mentioned in a previous post a few weeks back, Surf Financial Brokers has made a serious effort to expand our social media footprint. We added an Instagram page to our group of platforms recently and now we have a full-fledged YouTube channel. 

We hope both Instagram and YouTube will be great for our business. Recognizing that many people are visual learners and that not everyone wants to read a blog, we hope that short informational videos on topics like life insurance, disability insurance, long term care insurance and our other products will help our viewers understand how these policies work, along with reasons why people should look into them. 

Did you know that YouTube is now the number two search engine, behind their parent company, Google? People search on YouTube for all kinds of information, from how to repair the thermostat on a 2005 Chrysler to the best way to make a pan-fried steak. Personally, it can be a lot easier for my brain to retain information when someone is explaining it to me, rather than reading a blog. 

We had a couple of reasons for wanting to do all of this work from a marketing standpoint. First, the traditional way of prospecting, asking for referrals and networking is good, but it can wear an insurance agent down. And we had a feeling we were missing out on a more social media savvy segment of the population. (see "younger people")

Making Surf Financial Brokers more of a virtual agency was starting to look appealing over a year ago.Then the pandemic arrived and sped things up a bit. Since we had already decided to make the adjustments, the virus just expedited the process. 

The internet has changed the way almost everyone does business. From marketing to the delivery of products and services, nearly every industry has had to make changes in the last 25 years. The life insurance industry still has a few holdouts though, who maintain that policies need to be "sold" in person by a trusted agent. 

This old school way of thinking kept agents, for the most part, limited to a geographical location. By expanding our social media footprint, we hope to cast a wider net of prospects. And we provide tools for our clients to use that can help them do some homework before setting an appointment with us.

As we have seen with auto insurance, more and more people are comfortable looking for coverage online. And almost all of the major car insurance companies have a strong social media presence. We hope this translates to other lines of insurance, including life, disability and long term care.

By making Surf Financial Brokers a "hybrid" agency, we can give the personal touch of having a live person on the phone if you have a question, as well as a virtual aspect for those who want to do their own research. As one of our taglines says, we're the "No Pressure Insurance" company. 

A great way to convey that message is through our various social media pages. You can find us on Facebook, LinkedIn, Twitter, Instagram and YouTube. With a mix of memes, blogs and short videos, we hope to get the word out that Surf Financial Brokers here to help people protect themselves and their loved ones. 

Look us up on YouTube and subscribe to our channel. 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!

Pre-Exisiting Conditions

Pre-existing conditions have been mentioned in the news of late, mostly because of the debate surrounding the Affordable Care Act (ACA), otherwise known as Obamacare. In regards to major medical insurance coverage, people can currently still be covered for illnesses that they may have had recently or, in many cases, still have. 

When it comes to life insurance, disability and other related types of insurance, pre-existing conditions are still considered by the insurance carrier's underwriters. This doesn't mean that someone will be refused a policy, but depending on the situation, it can be difficult to get and/or more expensive.

Different kinds of coverage will have varying types of underwriting restrictions. For example:

Life Insurance - Underwriters consider a large swath of items when looking at covering your life. Things like smoking, obesity, previous illnesses, current illnesses, dangerous hobbies, DUI's and family history all get looked at. A few years ago I had a client who was morbidly obese but wanted some life insurance. We found her a plan, but it was "rated up", which means that the company increased her premiums to reflect the risk they would be taking on by insuring her. 

There are companies who offer "guarantee issue" plans, but they are expensive and will sometimes limit the death benefit in the first two years. Obviously, the people who apply for these policies know that their health is not good and are rarely surprised by the rate jumps. 

Disability Income Insurance - As with life insurance, many of the same factors apply. I had a client who flew a small airplane once a week for work. I thought it would be an issue until the underwriter told me that "if he crashes that plane, he won't be disabled, he'll be dead." She issued the policy.

When I work with people who are looking at company sponsored group benefits, pregnancy often comes up in the disability conversation. Most of the carriers will cover the time after delivery for a few weeks, but with limits, and the applicant may have to wait up to 10 months for coverage to be effective.

Long Term Care - In my experiences, this has always been one of the insurance products that have the toughest underwriting guidelines. The underwriters like to "connect the dots" with the information they have. For instance, I had a lady who, years before her application, had fallen off the bottom rung of a ladder, resulting in a hairline fracture of her kneecap. Now she had been diagnosed with osteoarthritis, so the underwriter decided that she had brittle bones. It took a candid conversation with the underwriter to explain that the two were not related and the policy was issued. 

In another case, I had a gentleman who had some heart issues and smoked a few cigars each week. The underwriter declined his application citing that the cigars could contribute to a cardiac event. Not long after the gentleman died of a heart attack. 

As you can see, there are a lot of issues and concerns that go into issuing these insurance policies. As an agent, we have to be fairly good at knowing about our carriers and their underwriting guidelines. I had a conversation last week with one of our partners who markets long term care insurance. We were discussing a company that I had not been aware of previously. When I asked about them he said," They are great if you are healthy." That's all he had to say. 

We do our best to help you find the best policy for your needs and in your budget. Check out our website and book a phone consultation. 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!

Is There A Covid_19 Insurance Package? (Pt. 2)

In the last post told you about a couple of insurance products, namely life insurance and disability income insurance, that are a great fit if you are concerned about catching the Covid_19 virus. In my opinion they are two insurance coverages that everyone probably needs. As a matter of fact, when I speak to groups about their insurance products I discuss the "Holy Trinity of Insurance", consisting of life and disability insurance, as well as the major medical portion. 

Just because other products are not in the Holy Trinity doesn't mean they can't be good products and act as the "saints"(as you can tell my mother sent me to Sunday school). I have a couple of  options for you if Covid_19 is in the back of your mind.

The first policy I would like you to consider is a Hospital Indemnity (HI)* plan. Generally speaking, HI plans cover you for being admitted and confined to the hospital. There are a few other benefits that we see from time to time, including anesthesia and outpatient surgery, but not all policies have those or they may be additional riders. These policies can vary dramatically from different companies and also state regulations, so check into what is available in your state. 

One of the things I like about most HI plans is the simplicity. Generally speaking, an HI plan will offer a daily confinement benefit that you decide on. For instance, you can choose $100 or $200 a day benefit. Some policies will offer an additional benefit for being admitted to the hospital like $2500 or $5000. These plans offer riders for critical accidents, skilled nursing facility, outpatient surgery, as well as dental and vision. With all of these riders available one can "customize" their policy for their own needs and budget. 

You can get a great description of the policy and run your own quote by clicking here. 

One other policy I want to mention may sound out of place in a discussion about Covid_19, I think it deserves a listen. Given that nursing facilities are suffering greatly from the virus, which apparently is very contagious amongst the residents and caregivers in these facilities, the option of staying in your own home is much better. Of course, there is one obstacle in that strategy, and that's price. 

In my hometown, a good skilled nursing facility would have cost my father around $35,000 a year. He was adamant that he wanted to be in his home and hired a home healthcare company. The cost of this was over $75,000 each year. Even though he really couldn't afford it, my father used the equity in his home to pay for the caregivers to stay with him around the clock. 

With all of this in mind, we offer a Short Term Home Healthcare plan, which helps pay for those expenses related to staying in your own home. Unlike a Long Term Care plan, this plan helps you pay for care only in your own home for up to 365 days (not necessarily in a row). Even though the carrier recently changed the minimum age of this coverage to 61, it is still very affordable and you only have to answer a few simple health questions. To see a short video on this product click here. 

So if you are concerned about how Covid_19 could affect you or your family's finances, look us up on the web and book an appointment to speak with us. In the meantime, please stay healthy. 

*Not all policies are available in all states and rates 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!