Disability Insurance For 2025

Happy 2025! I hope you've got your New Year's resolutions in order and  that one on your list is making sure that you've got your paycheck protected. 

When I speak to groups I ask what is their number one asset is. People will say it's their house or their car or collectibles, but the number one asset you have is your ability to earn a living. Without that you really don't have all those other things.

This is why it's important to make sure that you can still earn a living and bring money into your household. If you're sick or hurt and you can't work what happens to your bills? They just keep coming and don't stop. This is how people get behind the eightball, so it's important that you have a protection plan in place. We call it disability insurance. 

Let's say that you had a box in your house that prints money. Once a year it would print enough money to replace your annual salary so just for instance, if you make $40,000 a year, once a year this machine would print $40,000.  Would you insure that machine? The answer is of course "yes". 

Just to be clear, you're the machine. You're the one making that money, so it's important to make sure that you are protecting your "number one asset". With that in mind knowing that you're going to have to need some disability insurance you've got a couple of options.

If you're self-employed you would call an insurance agent and say, "I need to get some disability insurance." The agent will give you a quote based off of your line of work, as well as your age, your health and if you smoke. 

Most of our clients go with a two-year benefit because it can take that long for Social Security disability benefits to kick in. However, some of our clients choose benefits periods from six months or up to age 67.

If you have the option to purchase disability insurance through work, get it. Disability plans through work are a little bit different because almost all employees are going to have the same occupation rating because you're all working in the same industry. Also, they may include maternity benefits which individual plans won't offer. 

One item to mention is that if your employer is paying for your disability insurance, those benefits are taxable. In other words, if you file a claim because you got sick or hurt you can't work you're only bringing home about 65-70% of your income. and you'll be on the hook for paying taxes on that money. 

One of the misconceptions when it comes to disability is that people think of people in car wrecks or sitting in wheelchairs, however about 85% of all disability claims are from sicknesses. Things like cancer, strokes and heart attacks as well as other chronic illness tend to be the majority of claims. 

One more thing I want to share is called a Return of Premium Rider. It can cost a little more, but if you keep your plan to age 67, the insurance company will return your premiums to you minus any claims paid. Think of it as a forced savings plan.

If you have any questions or if you're self-employed and would like more information, 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. Please subscribe to this blog!

Do You Have A Rainy Day Fund?

We often hear about people who need funds in an emergency. Someone who has a medical emergency, for example, may need some quick cash for hospital bills, deductibles, co-pays. Along with that could be a shortage of money to pay bills while out of work. 

A general rule of thumb has been to make sure you have six months of money saved to pay bills, but many rarely do this. The solution has been to wait until an emergency occurs, then start a GoFundMe page and ask friends or family (or even strangers) to contribute. People who know I sell insurance will ask me "Why didn't you sell that person some insurance?"  My answer is "I tried but they didn't find it important enough at the time."

However, if one owns a permanent life insurance policy that builds cash value, asking friends and strangers to kick in doesn't have to happen. And by overfunding a policy*, building that cash value can happen faster. 

I knew of a gentleman who had quickly built a small fortune in a life insurance policy and would "warehouse" his money until he needed it. If he saw a piece of property he wanted to purchase he would call the insurance carrier and "borrow" against his policy, and within 6-8 months he would have the loan paid off. By using this method he avoided having to fill out loads of paperwork at a bank and, in most cases, he would have the money within a few business days.

The point of this is that life insurance that builds cash value can be used for emergencies, like a critical illness, or many other things. If you have questions about how this works, visit our site and book a short phone appointment to discuss. In the meantime, please stay healthy. 

*There are limits as to how much one can contribute to a policy which are set by the IRS. Tax penalties can apply if the policy isn't structured correctly.

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!

What Is Heart Attack and Stroke Insurance?

Even though Covid has been the main medical headline for the last year or so, other serious health issues are still leading to more deaths. Heart disease, for example, is the leading cause of death in the United States, and as Covid deaths continue to decrease due to vaccines, strokes and cancer will remain near the top of the list as well.

Many times on this blog I have discussed the importance of a cancer insurance plan. Cancer, which comes in many forms and can be specific to one organ or another, is recognized by many when the topic comes up. And even though we all know that heart disease and cardio vascular issues prevail, we don't discuss them as much as cancer.

Part of this is because for many people, avoiding these health problems is a matter of changing one's lifestyle, diet and fitness goals. Making those changes, like eating less pork, drinking less alcohol and going for a walk tend to cut into our wants and needs. And it can seem as if it interferes with our work day. Of course, stress is a leading factor in all of this.

Yet we see and hear about heart attacks and strokes all the time. Think of all the commercials on TV for medicines that can reduce your chance of a heart attack or stroke. 

The effects of a major health event can be long lasting. Physically, one can expect to be on some sort of medication for the rest of their life after experiencing a heart issue. A stroke can be debilitating and lead to other issues. My mother had a small stroke while undergoing knee replacement surgery. The stroke, which affected some of her motor skills, also kicked her dementia into overdrive. What was previously some age-related memory loss became full-blown episodes.

There is a financial cost to all of this as well. Anyone who has been hospitalized for a cardiovascular disease knows all too well that there will be deductibles, copays, out-of-network cost (just because your hospital may be in the insurance company's network doesn't mean that everyone that works there is in the network!) and other out-of-pocket expenses. This can add up quickly. And believe me when I say this, not everyone wants to contribute to your GoFundMe page. Plus there is the loss of income when someone is out of work as a result of one of these illnesses.

With all of this in mind, it is important to know that there are insurance policies available that help cover these costs. Most of them pay a lump sum amount in the event of a major health issue, like a heart attack or a stroke. We offer several of these plans, including the following:

• Cancer, Heart Attack and Stroke plan. Just as the name implies, this policy will pay you a lump sum of money (you choose at the time of the application) when diagnosed for one of these conditions.
• Critical Illness. These plans also pay a lump sum but have a different array of illnesses. Most include heart attack, stroke, comas, and other major health events, but cancer may or may not be included. Check with your agent to see what they offer.
• Disability Insurance. When people think of disability insurance, they think of someone hurt who is in a wheelchair, but over 85% of all disability claims are from illness, with cancer and heart disease at the top of the list. 

If heart disease runs in your family or you have concerns about one of these health events, drop us a note or schedule a quick phone appointment with us. We'll be happy to help you with 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!