What Happens When You Can't Work?

We can presume that most of us enjoy earning a living, getting a paycheck (nowadays direct deposit is the norm) and having some discretionary, or "leftover" money to use after paying our bills. Those funds are what we use for the fun stuff, like eating a meal at a restaurant or seeing a movie or treating a friend to lunch. 

But what happens when those funds are no longer available? What if you aren't able to work due to sickness or injury? 

For many people (like me) who are small business owners, independent contractors or otherwise self-employed, a serious disability could not only be devastating to a family's finances, but could also damage the business providing the income. But there's a solution!

A Disability Income (DI) insurance policy can help you protect your paycheck, which in turn helps you pay your bills and maybe even have a little leftover for a movie. DI can help you and your business stay afloat when you are unable to work. 

There are a few things to consider when looking at DI. 

• Underwriting looks at your health, your income and the type of work you do. An office worker may have lower rates than a welder because welding is more dangerous. Some insurance companies will require to see your taxes for the last 2 years.
• Policies can also be purchased that are solely for keeping the business open. 
• Individual DI policies may not have all the benefits found in group plans, like maternity coverage. However, there are many more options that can be structured to work for your needs.

Premiums may not be as high as you think, and your coverage can be customized to fit your budget. Given that over 85% of claims are actually for illnesses, like cancer or strokes, that doesn't mean accidents can't happen. Either way, if you can't work, a DI plan will be a great way to avoid guilting your friends and family into contributing to your GoFundMe plan. 

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 Life Insurance Is Necessary For Blended Families

As the holidays approach, the idea of taking care of our family means more to us. Having our loved ones get together for a nice meal and gift giving leaves us with great memories. 

However, when we think of the "traditional family" we think of a husband and wife and their two or three children, who all live together in one home until the kids become adults and move out. Even though there are still families in this situation, there are many people who have changed that concept. With social norms changing and people living longer, the family structure has been altered dramatically. 

Now we have parents raising children who are not theirs, biologically speaking. Think of the old Brady Bunch TV show where two parents who had their own kids remarried. Of course, on the show everything was great. The fact that Marcia was not Mike Brady's biological daughter was never brought up as a topic. 

There are those people who do love their step-kids or other children who have been brought into the home, like nieces and nephews . I know of one person in particular who is raising his wife's nephew because his sister-in-law had a drug problem. 

There are those who begrudgingly raise a spouse's children from a previous relationship to "keep the peace". And when problems arise, the kids want to move back to their other biological parent or some other option. In other words, tensions can, and in some cases, do get escalated to the point where children are going back and forth between parents or other adult family members. 

With all of this in mind, it's important to keep an even keel when it comes to estate planning with a blended family as it creates a whole set of issues. A will may seem like a good way of planning, but in fact, life insurance could be a better option to make sure those who are intended to benefit will be taken care of in the eventual death of a parent. And in the flexibility of naming and changing beneficiaries, as well as listing primary and contingent beneficiaries, makes it incredibly easy to take care of the family's estate planning needs. 

As an attorney friend of mine says, "A life insurance policy trumps a will because it's a legally binding contract." The "yours, mine and ours" scenario can be very confusing for most families when it comes to estate planning, and life insurance can be the answer that is needed. It can help avoid a long and drawn out estate process and keep the peace within a family. 

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!

Now Is A Great Time To Reconsider Benefits For Your Employees

There has been a lot of talk on the news and social media about the labor shortage that we are having in our country of late. Despite what some outlets are saying, there are a variety of reasons why employers are having a hard time finding and keeping personnel.

One way employers can get the employees they want is to offer benefits. I have worked in the workplace benefits arena for years and have seen many small business owners brush off the idea of having to deal with payroll deductions and billing issues. But those same people are now starting to reconsider as they find staffing their businesses to be more difficult than ever.

We work with several companies that offer benefits and can coordinate existing benefits into the mix as well. And we can cover groups of any size, from 2 people to 2000! If you are a business owner or know of someone having staffing issues, let us help you find a good product mix that your employees will want.

Drop us a note or book a short phone call to discuss what you currently offer and how we can help. 

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!

Benefits For Business Owners (and Otherwise Self-Employed) 2023

At Surf Financial Brokers, we really do enjoy helping owners of small businesses, entrepreneurs, sales professionals and otherwise self-employed. This is because we are in the same boat as independent agents. The lack of group benefits can be troubling, but we are doing our best to help these great folks (who are the backbone of our economy) have access to quality dental and vision plans, cancer insurance and, of course, disability insurance. 

Being self-employed can be scary, but it can also be very rewarding. Paying for your own benefits is a small price to pay for the independence and freedom of owning your own business. 

We have put a few of these types of plans on our website for you to look at, run a quote, and even apply if you like what you see. If you need information for something that isn't there, drop us a note or book a short phone appointment to speak with us. We look forward to helping you out. 

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!

7 Times When You May Need Life Insurance

There are times in our lives when we need to start looking at purchasing a life insurance policy. These are events that can make a difference in our lifestyles, spending habits and social habits as well. And many times these changes do not only affect us, but our loved ones and business associates as well. 

With that in mind, here is a list of times when you should start to seriously look at life insurance.

1. Married or getting married. This is a no-brainer for most people. Becoming a spouse means that, for most people, purchases and financial decisions will be made jointly. Homes, cars, and other large purchases will typically be in both names, as well as credit cards, bank accounts and various other items. Should one spouse die too soon or unexpectedly, the surviving spouse will be obligated to pay off any debts.

A friend of mine was widowed several years ago only to find out that his deceased wife still had a balance on a credit card he was unaware of. In his state, he was legally obligated to pay off her debt. Luckily for him, it was not a lot of money, but if it had been it could have affected his credit poorly.

2. Parent or about to become one. A comedian once said that kids are like really expensive pets. Nothing could be truer. The estimated amount of money to raise a child in this county varies from around $175,000 to $250,000, depending on which study you read.  No matter which source you choose to use, the numbers are high. And if you are planning to pay for education costs, the numbers can be increased from 50-100%, depending on the school your child attends.

When I sit with a parent and discuss their life insurance needs we take into consideration the costs of raising a child as part of the overall plan. A single parent could be burdened with a huge financial issue which can be easily avoided with a life insurance policy. 

3. Purchasing a home. While most people think of buying a home as a good thing, it can be a huge expense. Maintenance, repairs, taxes, insurance and other expenditures will sneak up on many new homeowners. Again, why leave your significant other with shouldering all of those expenses when it can clearly be avoided. 

4. Changing jobs. Depending if you are getting a raise or taking a pay cut, you may have to adjust your financial plan, including your life and disability insurance. If you are getting a pay increase, you may start spending more money, which incurs more debt. Taking a pay cut may mean you still have debt to pay but on less money coming in. Either way, making sure your loved ones don't get stuck with those bills is what life insurance is for.

5. Retired or planning for retirement. Many times I see people who have outlived their term life insurance policy, which is a good thing, but they still need some insurance for their final expenses and maybe some money for estate taxes. In these cases, people usually look into Final Expense insurance, but that can be pricey. If you are still healthy, a Guaranteed Universal Life policy can save a lot of money and accomplish the same goal. 

6. Newly single. If you are getting divorced and are obligated to pay child support, the court may want you to buy a life insurance policy with your ex as the beneficiary. 

7. Starting a business. Opening a business can be an expensive endeavor, and whether or not you have partners, you still may want to look into a life policy. 

I met a nice lady a few years ago who was up to her ears in debt because her husband decided to open his own medical practice. She begged him to buy a policy to cover the debt he incurred with rent, equipment and payroll. He kept putting it off and a few months later, while cutting down some trees in their yard, a log fell on him. She was stuck owing money that could have been paid out.

The same can be true of business partners. If one dies, the other partner(s) may want to buy out the deceased partner's interest. Otherwise, they may end up with the widow as a partner, which may or may not be desired by either party. A buy/sell agreement funded with a life insurance policy can fix that problem.

As you can see, a life insurance policy can help you and your loved ones avoid many problems down the road. And it can be less expensive than you think. If you want to see how much a policy can cost head over to our site and run a quote. In the meantime, 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!

Can I Take Out A Life Insurance Policy On Someone Else?

Every once in a while I will be having a conversation with someone who wants to know if it is possible to insure someone else, like an acquaintance. When this happens I don't really know if they are kidding or not, but I ask if there is some sort of relationship there between the two of them. Usually the answer is "no, you can't" which seems simple enough but people ask why.

Can you imagine the madness that would ensue if people just went around insuring the lives of people they didn't know but "looked sick"? And if insurance companies had to pay those claims they would be out of business quickly. 

There are some guidelines (and reasons for them) when it comes to insuring other people. One of the basic rules for this is that there must be an insurance interest. In other words, before you take out a policy on someone else, you must have a relationship, either familial, personal or financial, with that person. Of course we can take out a policy on a spouse or child, as people do that all the time.

And if you borrow money from a financial institution or an individual, they may require a policy to secure the loan. That is considered acceptable as well. 

Another piece of this is that most states forbid insuring someone over the age of 16 without their knowledge.  But if the insured is over 16 they must sign a form acknowledging they are being covered. This rule applies even if the insured is your 18 year old child.

Back in the old days big companies would buy life insurance policies on all of the employees, with the company being the beneficiary. The thought process was that if the employee died there would be "transition costs" associated with finding a replacement. These Corporate Owned Life Insurance (COLI) policies became controversial when family's in need began learning that the death of their loved one was profitable to their deceased loved one's employer.

The issues arose (as well as lawsuits) when the insureds were no longer in the employ of the company. At that point, any insurable interest went out the window. In the early 2000's several of these types of legal issues got some news publicity which shined a light on how many large corporate companies were secretly adding to their bottom lines.

Nowadays, COLI's are still used, but not covering every employee, including the janitor. (They were actually called "janitor policies" because of this). More often than not, COLI's are used to cover the lives of the top brass, like the board of directors or top executives, who are supposedly fully aware of the policy. I have even heard that the beneficiaries of the policies are split among the company and family members. That sounds much fairer.

With all of that said, here is a short list of people you can insure:

• Family. When the life insurance agent asks what your relationship is to the insured, immediate family is a no-brainer. Be aware that there are limits on insuring children but otherwise you should be okay.
• Former family. As in ex-spouses. If there are children involved the court may order that you maintain a life insurance on your former spouse to help with expenses if the former spouse should die.
• Parents. Yes, they are family but they may have let their life insurance policy lapse or expire and a final expense plan may be the best answer.
• Business partner. Buy/sell agreements are usually written up between business partners to help ease with the transition of responsibilities when one of the partners dies. These agreements are usually funded by a life insurance policy so one partner can buy out the deceased partners ownership. 
• Key employees. Key employees are the ones who contribute significantly to the business or may have some highly specialized skill. These people are difficult to replace and if they die unexpectedly the company could take a financial hit.

If you have any questions about any of these scenarios, ask your agent or drop us a note in the comments. In the meantime, 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!

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!

Christmas Wishes

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

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

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

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

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

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

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

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

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

Do I Need Business Overhead Expense Insurance?

 

When I speak to groups about their insurance, I often mention "Holy Trinity" of insurance, which is their medical insurance, life insurance and disability insurance. The last one, disability insurance, I tell them, is just is important as the other two, because if one were to get sick or hurt and couldn’t work, the bills don’t stop coming and will need to be paid. Disability is basically paycheck insurance.

But what if you are, like me, self-employed, a 1099 employee or a business owner and don't have access to a group plan? What would happen to your business if you were unable to work?

Which is why I like to bring up Business Overhead Expense  (BOE) coverage. It’s an insurance product most people probably haven’t heard of before even though it's been around for a long time. And it definitely one of the most undersold policies out there, probably because there are agents who don’t even know about it.

Business overhead expense insurance is designed to keep things going when a disability or illness requires you to be temporarily absent. This is different from personal disability insurance, which makes payments directly to you to replace lost income if you can’t work.

If you own a business, it’s important that you understand how BOE works so you can decide if it’s something you need.

BOE is a type of insurance that pays benefits to your business if you’re unable to work. For example, if you’re in a car accident and are seriously injured, or you’re diagnosed with a serious illness, your policy’s benefits could kick in to provide the business with cash flow while you recover.

This type of insurance is typically used to help manage your business’s day-to-day expenses. It helps your business continue as usual even when you can’t be there.

What BOE Insurance Covers

BOE is business-specific, meaning it applies to expenses related directly to running your business. The types of expenses you can use business overhead expense insurance to pay include:

• Rent or lease payments
• Loan payments
• Insurance premiums
• Utility bills
• Custodial services
• Payroll for employees
• Tax obligations
• Business credit card bills

There are, however, some things that overhead expense insurance is not designed to cover. For instance, these policies don’t extend to expenses related to improving or expanding your business, such as buying new equipment or opening a second location.

Overhead expense insurance also doesn’t cover your salary. That’s why you would need an individual policy on yourself.

It’s worth considering purchasing this type of insurance if you’re the person who’s primarily in charge of running your business. Having an overhead expense insurance policy in place means the bills continue to get paid for the business when a disability or illness puts you on the sidelines.

Depending on the terms of your policy, your insurance company could pay benefits for up to two years after you file an eligible claim. That can be helpful if you have a serious disability, illness or injury that requires extensive rehabilitation or physical therapy.

Keep in mind that not every business owner may qualify for this type of insurance. If you’re self-employed as a freelancer and run a business from home, for example, you may not be able to purchase a policy. You may have to stick with a regular personal disability insurance policy instead.

There are advantages associated with having this kind of insurance for your business.

Here are some of the key benefits of BOE insurance:

• Your business can remain open even when you can’t be there to run it
• Essential business expenses can be paid for using policy benefits, allowing you to preserve your business’s cash reserves
• Being able to meet payroll means you have a better chance of retaining key employees
• A BOE policy decreases the odds of having to dip into personal savings to cover business spending
• Premiums paid for coverage may be tax-deductible
• Business expenses paid with premiums may also be tax-deductible

In terms of the downsides, here are a few things to keep in mind:

• Policies don’t pay benefits to you directly so you’ll still need separate disability coverage for that
• Benefits typically have a time limit of 2 years and can’t be paid indefinitely
• Any benefits you receive may be considered taxable income for the business
• Policies may enforce a maximum monthly benefit limit, which may be less than what you need to continue operations

As you can see, the pros generally outweigh the cons but they still need to be factored in. And you also have to consider the potential return on investment for purchasing this kind of coverage. Having it can be a safety net if you get sick or become disabled but if you never end up using your coverage, you may feel as if you’ve paid premiums for nothing.

The key advantage to having a BOE is that it gives you time to make a decision if you are disabled. You probably won’t know when or if you’ll recover, or if you should shut down the business, sell it or keep it open. That 2 year benefit window gives you time to figure it all out.

If this is something you think you need, drop by our website and make an appointment to have an agent call you. Or you can leave a question on our contact form. 

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 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! 

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!

Do You And Your Partners Need A Disability Buy-Out Plan?

In a previous post I discussed buy-sell agreements between business partners and why they were necessary. To recap, in the case that a business partner dies, the surviving partner will more than likely want to buy out the deceased partner's interest, and to do that they may need money. With a life insurance policy in place for that purpose, the surviving partner will have the funds needed, thus avoiding a scenario where they are in business with their partner's spouse or other family members.

With that in mind, let's take a look at a similar scenario. For this example, we will name our business partners Bob and Neil. Both are married and have their own families, live in nice middle class neighborhoods and are making enough money to pay their bills while stowing a bit into a retirement account. 

One evening, Bob in on his way home and a car crosses the center line, hitting Bob's vehicle. Fortunately, Bob survives the crash, but unfortunately, he is severely injured. Bob is more than likely going to be permanently disabled and will not be returning to work. 

Luckily for Bob and his family, he had purchased a Disability Insurance (DI) policy early on and will have some income to help pay his personal bills. But what about the business? And what happens to Neil in this situation? Will Neil have to do the work for two people and split the profits with his now disabled partner? 

Here again, a good buy-sell agreement needs to be in place beforehand. This legally binding agreements sets the terms and conditions of the sale and the subsequent purchase of the disabled partner's ownership of the business. Having an insurance policy in place helps fund the buy-out, and can also help pay the disabled partner's bills. 

The payout can be distributed in a lump sum, monthly disbursements or a combination of both. This can be decided at the time of purchase.

In some instances the company pays the premiums for the policy. However some smaller businesses will do a "criss-cross" agreement, in which each partner pays the premiums and receives benefits from the disability policy covering the affected partner. 

After an illness or injury occurs, an elimination period, has to be met before benefits are paid. This elimination period is a waiting period that can be a few months or as long as a couple of years. Think of an elimination period as your deductible, but in time rather than money. And just like your car insurance, the higher the deductible, the cheaper the premiums will be. 

Having a buy-sell agreement avoids a lot of potential issues that can occur if a partner is sick or hurt and unable to work. This plan can prevent a financial loss or even bankruptcy by keeping the business afloat. In turn, this helps keeps those on the staff of the business employed as well. And the owners can be assured control of their business decisions, with the freedom to replace the injured owner with a person of their own choosing. Not to mention that they will not be forced into business with any family members of the disabled partner.

Since the purchase price of the business was stipulated in the original buy-sell agreement, the disabled partner should feel he or she was given a fair market price for their share in the business. I usually suggest that the numbers be updated every few years to keep up with the growth of the business.

If you have business partners and would like more information on how to fund a buy-sell in case your partner dies or becomes disabled, let us know. 

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!

Insurance News and Updates

With Covid looming over us, there have been a spate of changes in the life insurance business. Some companies are suspending sales of certain products while others are thriving. We recently got word of two changes that probably won't affect a lot of consumers but from an agency point of view, we hope it's not a trend.

First, we learned last week that Prudential has decided to suspend the sales of their PruLife UL Protector product. This was a universal life policy with growth based on interest rates, and with rates so low the company states that "we have decided that we can no longer offer UL Protector in a way that provides strong consumer value and prudently supports our business objectives." 

Translated to English, that means that the low interest rates were not sustaining the policy enough, which would have probably led to premium increases that would have made the policy less competitive price wise. Given that there are still potential claims to be paid on "in force" policies, Prudential decided to cut their losses. 

Another recent victim in the insurance industry isn't an insurance carrier, but an ancillary paramed exam business, EMSI. One of the major players in home health exams for insurance companies, the downturn in volume has forced them to shutter their doors, and their website. 

According to a press release, they ceased operations on July 3, 2020 and stated that "COVID-19 has disrupted families, communities, and businesses in our country and around the world. EMSI has become a casualty of these unprecedented times, as the pandemic has severely depressed service volumes. As a result, all company operations ceased on Friday July 3, 2020. We are thankful for all our customers and to EMSI staff and partners for their service to EMSI and its clients."

In recent years, several insurance companies have used less paramed exams due to the cost and have made changes in their underwriting requirements. One of our carriers doesn't require an exam for any of their policies with a face value of under $250,000 for younger applicants. They have also put in a limit for their disability plans. This eliminates a lot of exams, and in turn, overhead. The nurses who work for these companies are usually freelancers and get paid only when they do the tests. Luckily for a few of them, they can contract with various companies at once.

Like I mentioned earlier, in the short term neither of these changes will have an impact on you as a potential buyer. You can still apply great life insurance plans and go through the normal underwriting processes. However, if the current situation with Covid-19 persists, and if economic conditions continue as they are, we will see more changes like these in the insurance business, as well as in the other businesses that are connected. 

One of our jobs at Surf Financial Brokers is to stay on top of these changes so you don't have to. Just as you would want your doctor to stay up-to-date on medical issues, you would want us to be informed as much as possible when it comes to your "financial wellness". We do our homework and know that you want to deal with a professional organization.

If you find this blog helpful, please subscribe and send the link to a friend. And as always, 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.

The Infamous Buy-Sell Agreement and How To Fund It

One of the groups of people I love to help is small business owners. As a entrepreneur (I have an insurance agency and a consulting business), I can relate to these people. Many have left the corporate world to take on the day-to-day struggles of owning their own operation, and in that process they wear a lot of hats. Every once in a while I will come across a business that has multiple partners with each partner filling a role that the other partners don't want or aren't as good at performing. In other words, less hats. 

My father used to say that "the worst ship to sail on is partnership". He wasn't nearly as witty as he thought he was, but I understood what he was trying to say. Years earlier he had opened a small engineering firm with someone and apparently it was a horrible experience for him. His version of events was that he was doing all the work while the other guy just took half the profits. I don't know how accurate this was, but I do know that he rarely spoke of the other partner and that the business was dissolved after a couple of years. 

I have also had some shady dealings with "partners" who didn't quite carry their part of the workload and couldn't get out of their fast enough. After losing money and feeling stressed I decided to work solo from that point on. Now I just have what I like to call "professional business arrangements", in which my income isn't reliant on the production or work ethic of someone else. 

This doesn't mean that partnerships are bad for everyone. I've seen many that work, with partners who are college friends, family members or spouses. With businesses such as hotels, real estate firms, restaurants and others, partners find a way to make the most of each person's strengths and weaknesses. And in the process, they put their egos aside and share the success of their work. 

On those instances when I do get the opportunity to work with business partners I eventually ask if they have a contingency plan if one of the partners were to die. You see, people typically think long and hard about starting a business, but few consider exiting a business, much less having a person they rely on for their income to die too soon. The responses I get are varied, from "I'm not worried about it" to "I never gave it much thought". Scary.

An old friend told me that his nephew had opened a sports pub/wing joint with a distant cousin. Neither of these two was married and both were questionable when it came to their character. "Sounds like they could use a buy-sell agreement," I said. 

A buy-sell agreement is a legal document that states that if one partner dies, the other partner has the option of buying out the dead partner's stake in the business. This is important because the surviving partner may not want to be in business with the deceased partner's widow or next of kin. Especially if they never got along in the first place. 

Sometimes the buy-sell agreement is part of the legal documents that form the business, but if not, a good attorney can write a short document that can fit the bill. The most common way to fund the buyout of dead partner's stake in the business is with a life insurance policy. 

I met with the two cousins separately. The first one I met with was cordial and I explained that if his partner were to die he would be in business with the guy's mother. He frowned and made it clear that wasn't  something he would want. He knew the guy's mother and wasn't very fond of her. 

The second partner had a different view of the world. "If you're cousin dies, you're going to be in business with his grandmother." The grandmother was a tough lady who was known for being an even tougher businesswoman.  He shrugged his shoulders as to say "so what?" 

As the first partner saw the value in what I was presenting, the second one had no desire to buy a life insurance policy on his cousin. The deal never happened, mostly because they couldn't get on the same page when it came to this or other topics. Shortly thereafter their business shut down. 

When I talk to business partners, I throw out a "worst case" scenario. "How would you like to be in business with your dead partner's widow and her new boyfriend?" As bad as it sounds, it happens more often than you would think. A good buy-sell agreement funded with an affordable life insurance policy can be a simple fix to a potential nightmare. 

If you have a business partner, or multiple partners, and don't have a buy-sell agreement in place, I highly recommend you have an attorney draw one up for you. And let us know if we can help you put a policy in place to help you fund that agreement. In the meantime, stay healthy and feel free to comment below. 

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.

We Love Referrals!

When you find something you feel really good about, you tend to want to share it with your friends and family. At the same time, when you make a recommendation to someone, you feel like your reputation is on the line. 

We understand that. 

We want you to feel confident about referring your friends, family, and colleagues to us. That's why we think it makes a whole lot of sense to spell out exactly what we do when we get a referral. That way, both you and the person you refer to us know exactly what to expect and what not to expect from us. 
So, here's how we work with people who are referred to us:

Our initial meeting can either be at their home or at our office, and there is absolutely no cost for our initial meeting. 

Our conversations are 100% confidential, whether or not we eventually end up working together. 

We start with a review of what's important to them; in other words, what they value most in life. 

Next we move to a review of their current situation from a comprehensive financial basis. This is really the only approach that makes sense, because all the areas of our financial lives are interrelated. 

We finish the meeting by identifying strategies that may help them get from their current situation - where they are now - to "What's Important" - where they want to be. 

After our meeting, we leave it up to them to call us if they would like to visit further. 

We are insurace advisors, and we don't think any decision should be made in a high pressure environment. So, those we meet with should never expect us to pressure them into any particular course of action. We review, analyze, make our recommendations, then we let them make the decision. 

Should your referral decide to become a client, they should expect to hear from us on a regular basis. We believe that it is our responsibility to stay in touch with our clients. 

Thanks for your referrals! And as always, stay healthy!

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.

Covid-19 and Disability Insurance

As the pandemic continues to work its way across the country, there is a lot of uncertainty. But one thing is for sure and that is that people who have disability insurance (DI) in place, whether through their employer or bought as an individual plan, are grateful to have it right now. And I don't think any of our clients will be cancelling their coverage any time soon.

More than ever Americans are learning how valuable their DI plan is. In a recent conversation with a local business owner, she asked me if I would prefer short or long term disability during a time like this. Not trying to sound trite, I said it would be best to have both. This is because the Coronavirus can put you in the hospital for a few weeks, and short term DI is good for that, but other ailments may not be getting treated in the meantime. Elective surgeries can be postponed, leaving people out of work for longer amounts of time. 

One thing to be aware of is that if your employer is offering to pay for your DI coverage, that benefit can be subject to income tax. And if that benefit is around 60-65% of your income (which is close to your take home pay), expect to get another haircut from Uncle Sam. In the same vein, if your company offers a Section 125 plan, in which you can have the premiums deducted "pre-tax", again you may be subject to taxes. 

On the other side of things are the people who have to get their own individual policies. This makes up the vast majority of my clients, who are business owners, self-employed realtors or other contract employees. Generally speaking, the people who purchase their own DI are cognizant of why they need this protection. If they can't work, they can't pay their bills. For a affordable premium, these folk can shift the onus to an insurance company. 

Since these entrepreneurs are in different fields of work, from barbers to realtors to attorneys, they all have differing risk factors with their jobs. But the one thing they all have in common is that they have to work with other people who may or may not be contagious. 

As I watch our local news, I see that restaurants are closing temporarily as employees begin to test positive. I applaud them for being proactive and taking action. But if that is your co-worker, how confident or nervous does it make you knowing that you could be out of work due to the virus?

In the upper right of this page you can run your own quote (it's an estimate subject to underwriting) for disability insurance. It only takes a few minutes so check it out. You may be surprised as to how affordable it really is. 

If you have any questions about our DI plans, or any other plans we offer, feel free to drop us a confidential message from our website. We will respond promptly. And as always, please stay healthy. 

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.

DIAM Is Here!

May has been designated as Disability Insurance Awareness Month, which is a great idea when you consider that Disability Insurance (DI) is one of the most undersold, yet necessary products offered. There are a lot of misconceptions about the product and how it works, along with some screwy ideas of when to get rid of it.

When I speak to a group on the topic of different types of insurance, I discuss the "Holy Trinity of Insurance" (covered in a previous post), which are life insurance, health insurance and DI. Oddly enough, some people insists that they can't afford it, but don't understand that it protects their greatest asset, their ability to earn a living. Being able to earn an income allows us to purchase the things we want, like a home or car. If we can't work, we still need to pay for things we need, like housing, groceries and utilities.

And yes, DI covers Covid-19, as long as you don't have it when you apply for a policy.

Check out the short video and let us know if we can help you preserve your greatest asset.




Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient

The H.U.G. Plan

Recently I wrote on the subject of Disability Income (DI) coverage and gave you all kinds of good reasons why you need the coverage. And we also discussed what DI covers, which of course is you most valuable asset -your ability to earn a living.

With all that we talked about, I failed to go over the most important part, which is how much you need. Most carriers will allow you to insure between 65-70% of your gross income as a maximum. But do you really need that much? There are some people out there who have high incomes but low bills. Or they may already have a passive income stream, like a rental property. In other words, you may be able to survive a few months on just 40% of your income.

That's where our H.U.G. plan comes in. We can estimate your most basic financial needs by totaling up your costs for housing, utilities and groceries. It's simple and takes a few minutes. 

And by figuring up a "good guess" of what your DI needs are, you can save money on your premium. In today's environment, saving a few dollars is a good thing, but having the coverage you need also gives you the peace of mind you want.

For a quick snapshot of how much a policy can cost, click on the "Get a Quote" button in the upper right of this page. Need to stay socially distant? We can discuss with you over the phone.


Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.

Should You Buy From a Captive Agent or an Independent Agent? 2023

Did you know that there are different kinds of life and health agents? The differences lie in the type of company your agent represents and their pay structures, but these factors end up resulting in the type of insurance you buy, whether it's the best product for your needs or not.

Imagine a shoe store that only sells even number sizes. Unfortunately, you wear a size 9. The salesperson, who may or may not be honest, will try to tell you that they have something "close enough" for what you need. You try on the shoes and they are either too big or too small. The salesperson is limited in what he or she can sell, so they are going to try to get you to purchase what they have on hand.

In the insurance world, we have captive and independent agents. Captive agents typically are contracted to work with one company (unless that company has an agreement with another carrier) and are not allowed to shop around with other carriers. Typically, these are companies that carry your home and auto, but not always.

Why would an agent want to be captive? One reason is that you only need to learn one set of products, so you don't get spread too thin. Also, the company will normally provide supplies, office space and other perks, like training meetings and coaching. Sometimes they will even offer a salary or a draw for the first few months. This is great for a new agent trying to get their feet wet in the business. The downside is that the commissions are lower. A lot lower.

On the other hand, an independent agent works on their own, paying for their own overhead and making larger commissions. But the offerings to the client are much more expansive, as these agents can shop around literally hundreds of companies to find the "shoe" that fits the clients precise needs.

I knew a couple of agents years ago that ran a captive office. They loved to talk trash about whole life insurance, mainly because their company didn't carry it. I'm not a huge fan of whole life, but there are times when it fits the bill, so I make sure I have a couple of good carriers at my disposal when I need it. These two didn't have that luxury, as they only sold term and universal life. 

Don't get me wrong, some of my favorite people do well as captive agents. And when I show them what I can offer my clients they usually look surprised. Few of them offer indexed universal life, so when I explain to them how it works I get mixed reactions, from slight envy ("I wish we offered that") to outrage ("This is obviously a horrible product or we would sell it!").

An older agent once summed it up as follows. "Captive agents work for a company that can fire them. Independent agents work for the client and can fire the company if they don't treat the client well."

As you can see, we at Surf Financial Brokers are independent agents. We don't have a sales manager whispering in our ears about hitting sales quotas or any obligation to any of our carriers. Simply put,we enjoy having he resources to get the right size shoe on the foot in a comfortable and affordable way.

Stay healthy and let us know if you need anything.

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.

How Your Disability Insurance Can Help You Now Part 1

As we are in the midst of the Coronavirus pandemic I thought now was a good time to post a bit on Disability Income insurance (DI). As the name implies, DI insures your income. And that income pays your bills.

Ask yourself what your biggest asset is. Is it your home, your car or the money in your bank account? Actually, none of those is correct for the vast number of Americans. Your number one asset is your ability to earn a living. And if you are sick or hurt and can't work, what happens to the bills? They just keep coming.

If you have a group DI plan through work, that's fantastic! Most of these are voluntary, so if you enrolled in a plan, you may be paying for it through deductions from your paycheck. Sometimes, the employer pays for it. And sometimes, there's a mix of the two. For example, you may be paying for a short term policy that covers you for 3 or 6 months, and the employer pays for the long term plan that begins after the short term plan stops paying benefits.

Be aware that your benefits are typically tax free with two exceptions. If your company is paying for the coverage or if you've decided to pre-tax your premium. A good insurance agent will discourage the latter. If you're out of work due to a sickness or injury, and you go on claim, you'll be getting about 65% of your salary, only to have it taxed. Ouch!

Many business owners, self-employed and contract employees aren't eligible for a DI plan through work. For those people, individual DI plans are available. They may be structured differently but generally do the same thing, which is protect your income. However, you may be subject to underwriting.

And speaking of underwriting, know that your health AND your income are going to be looked at. Smoking, your age and other factors, including pre-existing conditions will be considered. Many times the insurance carrier will ask for your medical records. And they may want to take a look at your recent tax returns. Since the benefit is based off of your income, they want to make sure you earn what you say you earn. Makes sense.

Another factor is your occupation. The safer your job is the less expensive the rate. A welder or a roofer will be charged more than the person who sits in a cubicle. And some occupations are difficult to insure (or aren't considered). Take professional athletes, for example. I tried to insure a young lady a few years ago who was a professional golfer on a smaller circuit. No company would even consider her.

In the next post, we'll discuss elimination periods other items to consider when purchasing a DI plan. In the meantime, stay healthy and of course let us know if we can help answer your questions.

Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.