Cash When You Die, Cash When You Live Part 1

In a former life I had a securities license and sold products like mutual funds and variable annuities. Retirement planning was also part of the work as I would talk to people, mostly business owners or self-employed individuals, who had no funds put away or had gone through the little they had when the economy took a downturn around 2008. 

It was difficult trying to convince someone who was already wary of being in the market that they should return. At the time the market dropped, people who were not my clients called me wanting explanations. "Why are you calling me? I'm not your guy," I would ask. 

"My broker won't return my calls," was the usual answer. These people just wanted to vent and their usual investment reps were either dodging them or dealing with "bigger fish". 

In that experience I learned a couple of things. First off, as I mentioned earlier, a lot of people were just not willing to jump back into investing. Secondly, these people "lived in the moment", as most of them were younger and really didn't seem to care about their retirement years. Finally I realized that they could leverage their youth and relatively good health and purchase the life insurance they also didn't have.

I had worked with a company that focused on whole life insurance for a few years and liked the concept, but to be honest, I felt it was a bit too conservative. The company wanted us to sell it as a "retirement supplement", which was a hard sell. Even the mutual companies had tepid growth at the time.

I had also sold traditional universal life insurance, but there were other issues there. For starters, the growth inside the policies were based on interest rates, which had sunk to new lows. Back in the 1970's and early 1980's, universal life policies were sold as investment vehicles when the interest rates were in the double digits. Now they were losing money as the "cost of insurance" tends to increase in these policies as the years go by. In other words, the cash value inside the policies were getting eaten up by internal costs.

After doing some research I found a better alternative. The Indexed Universal Life (IUL) policy offers more potential for growth than a whole life policy or a low-interest universal life policy. But there is more to the story than just another life insurance option.

First off, let me acknowledge that there are detractors. The IUL is, like it's traditional counterpart, built with increasing internal costs, which can also "eat up" the cash value. However, it's internal growth is dependent on an index of the market (the clients has options to choose from) instead of interest rates. 

A properly structured IUL can offer upside growth with downside protection. There is a cap and a floor. The cap is the most the policy can earn and the floor is the least, typically zero. In other words, if the market takes off and does well, the policy's cash value will increase. On the other hand, if the market drops, as it did earlier this year when the pandemic struck, the policy loses nothing. 

Some carriers have begun offering IUL's with other benefits, either built in or as optional riders. Of course there are the usual riders like the accelerated death benefit and disability waivers of premium. But some include living benefits for chronic illness and critical illness benefits. 

In the next post I'll show you why an IUL is a great choice for supplementing your retirement plan (if you have one). 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!

It's Hard To Be Thankful In 2020

This has been a tough year for everyone. Of course, we have all had the Covid pandemic affect us either directly or indirectly. Not only has it been deadly to hundreds of thousands of people, but it has also devastated our economy. Unemployment has been high due to the vast number of businesses that just can't stay open in this environment. And I can't remember another instance in my lifetime where food lines were prevalent. 

In my own case, the year started off on a horrible note when my father, who had been suffering from Parkinson's Disease for the last few years, suddenly took a turn for the worse and passed away. And while he was in the hospital during that time, I also ended up in the hospital for almost a week. That all happened in February, and a few weeks later the Coronavirus got bad enough to begin a series of shutdowns. 

We all know the rest of the story. Businesses shut down, people were laid off, the economy spiraled downward and, of course, thousands of lives have been lost. Needless to say, 2020 has sucked.

So here we are at the end of the year. Thanksgiving is upon us and there really isn't a lot for  people to be grateful for. But for me and mine, we can find some silver linings. 

My business took a hit, like many others, but I'm still standing. My income took a hit, but I still am able to pay my bills. And even though I spent some time in the hospital, I can actually say that I now have my health. My family is doing okay and we all have made adjustments. 

I try to keep things in perspective. And through it all I have learned to be grateful. For my home, my family, my work and even the two cats that live with us. I'm grateful that my daughter is working and going to school at the same time. And I have special gratitude for my clients who continue to do business with me, especially now that I have made the change from a traditional agency to a virtual agency. 

But one of the things I'm most grateful for is this blog, which gives me an outlet to get things off my chest, and more importantly, the great (and very forgiving) people who read my rants. Originally created to help bring some much needed attention to my business, the blog has given me a reason to write more. As I write I formulate thoughts that I can, in turn, use when talking with my clients. 

When I write about a cancer plan, I have to actually take the time to learn about that plan. This also applies to our disability insurance or any of the other products offered at Surf Financial Brokers. Doing the research on products so I can discuss them in this blog works in my favor. And my clients enjoy knowing that I know my products too. 

It's understandable if you have had a bad 2020. But at some level there is always going to be something to be grateful for. It really depends on your perspective and how hard you look. With a vaccine hopefully being available sooner than later, I think things will start to turn around for all of us. And for that I am grateful.

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! 

My Personal Long Term Care Story Part 1

When I speak to groups about long term care I usually start off by asking the audience to raise their hand if they know of someone who is either receiving care or has received long term care. Of course, every hand goes up. Each participant has a story about a parent, grandparent or other family member who has been in a facility or had home care at some time. 

Since it's Long Term Care Awareness Month I thought I would share a personal story. In 1979 my aunt, who was already having mobility issues, fell down and broke her hip. My mother's oldest sister by 20 years, my aunt was moved to a nursing facility. Her adult children were in no position to pay for a nursing home, so it fell on my parents to help out.

My aunt had inherited a rental property when my grandmother had died a few years earlier, but the rent was not enough to cover her bills. At the time, long term care insurance had not been developed yet, so the cost of her care would have to come out of someone's pockets. 

After some thought and negotiations, her rental property was put in a trust, with my father as the trustee and the beneficiary. Any shortages would be the responsibility of my parents, who were in their 50's at the time. Statistically, people who have broken a hip usually survive on average around 3-5 years. If and when my aunt would pass away, my parents would inherit her rental property. 

Years came and went. The five year mark, then the ten year mark. My father renegotiated the leases as they expired to keep up with the cost of his sister-in-law's care. More years went by, and my aunt continued on in her nursing home. And as this wore on, my parents continued to age as well. Money was tight as my parents try to keep themselves and my aunt afloat. 

I was in high school when my aunt was put in the nursing home. While she was there I went to college, graduated, moved away, got married and had a child. When she passed away in 2001, my aunt had been in the nursing home for 22 years. My parents, who were now in their 70's, were financially and emotionally drained. At the time of her death, my mother and father were paying over $5000 per month out of their pockets for her care. 

After her funeral, my aunt's adult children asked about their inheritance. Apparently no one, including their mother, had bothered to mention the arrangement with the trust fund. Upset with the situation, they never spoke to my parents again.

As I was restarting my career in insurance, I tried to speak to my parents about their care. At the time, they were still eligible to purchase coverage, but being children of the depression, they deflected my pleas to look into it. 

"Don't put us (my sister and I) in the same position you were in all of those years," I begged to no avail. I lived about two hours away from my parents and my sister was about seven hours away. "What are we going to do if something happens to mom?" I asked my father. 

"I'll take care of her," he said. Sadly, his words were prophetic. 

In Part 2 of this post, I'll share what happened as my parents became chronically ill. 

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!

Should There Be Humor In Insurance?

Selling insurance is a serious business to most people. Let's face it, life insurance, disability insurance and other lines like cancer and accident plans are heavy subjects. Sitting with a client and talking about how their family will handle it when they die isn't the happiest discussion of the day. And asking them how they think their loved one will handle the family's finances if they can't work or become chronically ill is necessary, but not the kind of conversation one considers enjoyable. 

As an agent and insurance broker, I've had people tell me that they just want to avoid these doom and gloom topics. I completely understand that our everyday lives are full of negativity and bad news, especially with a pandemic and economic troubles in the news each day. But some topics, like making sure that your family is taken care of, have to be considered.

With this in mind, I try to keep the conversation serious, but not too serious. Half of the battle is to keep a good demeanor and let the client know that the seriousness of what we are trying to accomplish, which is securing the financial future of a family. 

However, sometimes a little humor injected into a conversation lightens the mood. I'm not advocating wearing a clown outfit when meeting with clients. But I do think that tossing in a little humor doesn't hurt anyone and keeps it all in perspective. Check out the video below to see how a bit of humor is okay.

A good example of this is when I discuss life insurance with a client. Part of the talk usually involves funeral costs. The average funeral runs about $7360, according to the National Funeral Directors Association, and there are usually some other expenses associated with death, like a brief hospital stay. To be safe, I may give a client an illustration for $10k. I sometimes will include a second illustration for $15k and show that as well. 

When the client asks why I show two illustrations I say, "The first quote covers the cost of your funeral. The second one is for the funeral plus an open bar for your mourners." That usually gets a chuckle. I even had one client take the higher coverage.

In my 20+ years in the business, I've worked with people who tried to be either too serious, or thought that they were standup comedians. Personally, I try to get to know my client a bit before trying to inject jokes. And I have even had clients who took a dark subject, like their own death, and made light of it. 

One client of mine began by telling me, in front of his wife and kids, that he had been shopping around for someone to cremate him and was on the hunt for the best rates. "I think I've got a guy down to $750, but I want him to guarantee that rate." His wife looked on in horror as he laughed at his own comment. "She's worried that the crematorium will increase the price when I'm not around to argue," he said with a sly grin. Dark humor at it's best.

Someone once said that people won't always remember everything you say, but they will remember how you made them feel when you said it. I don't expect my clients to remember every facet of the policy they are considering, but I do want them to feel comfortable and know that I'm looking out for their best interest, hopefully with a little humor.

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!

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!

Expanding Our Social Media Footprint

With the pandemic upon us businesses have had to find new ways to market themselves. Our agency, Surf Financial Brokers, is no different. Social media and a web presence are one of the many ways we are trying to get the word out about the products we sell and the services we provide. 

Actually, we were already changing the way we were marketing pre-Covid. The traditional way of selling insurance, by asking for referrals and mingling at networking events, was still working for us, but only in a limited capacity. And to be honest, agents can get burnt out quickly that way. My agents and I had some conversations as to what changes we could make to expand our messaging. We also asked for feedback from our clients.  

Social media can be a rabbit hole for a growing insurance agency like ours. It can be very easy to get caught up in all of the differing platforms out there, and the last thing we wanted is to take away time and resources from our clients. "Sorry, I'm not able to help you with a death claim because I'm busy posting silly memes." Absolutely not! We needed a plan.

Facebook, which has become a juggernaut of social media, took on a larger role. The logic behind this was that our agents were already active on the platform. There wasn't much of a learning curve because we already had a good amount of clients there already. 

LinkedIn was a no-brainer as well. As a great platform for networking and connecting with other professionals, it made sense to take some time to learn how to maximize it to our advantage. I've always managed to find good prospects on LinkedIn, as well as new sources of information. 

Realistically, our agents agreed that Twitter was fine to post short messages to, but the expectations were low. Our thoughts were pretty accurate, as nothing much has happened from our Twitter feed, but we really haven't put much effort into it either. 

You see, aside from this blog, we have managed to keep our time marketing on social media to under an hour each day, and typically it is more like 30 minutes. And that time is spent during early mornings or late evenings when clients don't expect us to be available.

 

Surf Financial Brokers unknowingly was preparing for social distancing before it was necessary. We were adding features like Calendly to our website, and transitioning to "phone appointments" months ahead of everyone else. When the Coronavirus became an issue, we already had most of the tools in place and just needed to step on the gas. 

With the addition of a new products like Short Term Home Health Care and our new accident insurance plan, we have also tried to make it easier for our clients by using web-based applications. This avoids us having to physically come into your home or work and filling out forms. Just as your pizza is delivered in a "contactless" manner, so can the way you protect your family's financial security. 

In recent days we have managed to dip our toe into another pool of social media, Instagram. Through discussions with some of our clients, we found out that not everyone reads blogs, even the interesting blogs like this one. A few clients said that they enjoyed reading short articles on life insurance, long term care plans and disability insurance, but they also liked the occasional short video too. The plan is to post short (less than a minute) videos on Instagram to cover various topics. 

If you are already following Surf Financial Brokers on Facebook, LinkedIn, Twitter or another platform, we thank you for your support. We hope you follow us on Instagram @SurfFinancialBrokers for some different content and information. 

We look forward to helping you and answering your questions. 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. And please subscribe to this blog!

Planning For Your Retirement

According to an EBRI (Employee Benefits Research Institute) survey conducted in 2015, 66% of workers had saved less than $50,000 for their retirement. And 28%  had saved less than $1,000. The numbers slowly got better over the years, mostly because employment increased. As a result employer sponsored retirement savings plans helped, as they were the most effective way for people to save. 

And then the pandemic hit us. For the millions who have lost their jobs, retirement has been put on the back burner as trying to survive financially day-to-day and keeping one's head above water has become the priority.

Again, we are definitely headed into a retirement crisis. After the market drop of 2008, many people cashed out part or all of their retirement plans to pay their bills.  Scared of another market drop, many took their money out of stocks and moved to low-interest yielding investments in an effort to preserve their capital. 

The difference now is that the market is doing well while the rest of the economy is hurting. Companies have learned that they can keep productivity up with less employees, thus increasing profits. Those profits are reflected in the growth of the stock market, but not everyone is enjoying these gains.  

And yes, real estate has done well. Interest rates are still incredibly low, attracting buyers, but who is selling? Perhaps it is those who can no longer afford to be in their home due to a loss of income. The world has become very confusing. And it can still be confusing for those who are trying to plan a retirement. 

There are a few things to remember when planning for retirement.  

First, safety costs money.  If you put your money in an annuity with "guarantees", you'll pay in fees or additional charges.  (And yes, regardless of what your agent sales, there are fees in an indexed annuity). See my previous post on the free dinner at the steak house.

CD's at the bank can cost you in this low interest rate environment by way of inflation eating away at your money.  Your principal can lose value by inflation outpacing your growth. Do a little homework and find out what the current inflation rate is. Currently it's around 1.3%, which is very low, but it can change quickly if oil prices spike or another global crisis, like a war, should happen.

Also, when planning for retirement, a holistic approach is best.  The commercials for "orange money" or a big wood carved number people walk around with is great, but what does it really mean?  Trips, vacations, seeing the grandkids?  

I have mentioned that the three phases of retirement are the "Go go years, the slow go years and the no go years". Everyone plans to be active and have fun once they retire but the hard truth is that you may spend most of your retirement sick or homebound. You should also figure in medical costs associated with aging.  Long term care insurance (or something akin to it) are a must, especially if you have assets you want to pass on.

Estate planning has been replaced with "legacy planning" in some circles.  Legacy planning is a broader term and takes the concept of estate planning one step further, letting you incorporate your morals, beliefs and ideals into your estate plan, and by allowing you to "make a difference" with gifts you leave to charities and loved ones. Retirement planning goes hand in hand with estate planning.

 

But back to our retirement crisis.  Most people clearly don't have enough money socked away.  The government isn't in a position to take care of us.  As life expectancy increases, that doesn't necessarily mean you will live longer and enjoy it. As we say to our clients, just because you may live longer it doesn't mean you'll live better. Quality isn't the same and quantity in this case.  

The bottom line is that is doesn't have to be all gloom and doom. If you are in a position to contribute something each month, even if it's just a few dollars, to your retirement plan, do so. Mix it up as much as possible by diversifying your portfolio. Consider both putting money into your savings while protecting your assets with a long term care policy, which is a great way to play offense and defense at the same time. 

Have questions or comments, put them in the comments section below. And 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!

Insurance News You Can Use

Recently a few items of interest crossed my computer screen and I thought it would be good to share with you some news from the world of life and health insurance. As they say, knowledge is power, and being a knowledgeable consumer of insurance is always a good thing. So here are a few bits of news with a sprinkle of my comments mixed-in.

Let's begin with some troubling news from North Carolina. The insurance commissioner there, Mike Causey, has levied a penalty of $1.1 million on Gerber Life for claims processing violations and delays. The company is also paying $2.5 million in additional recoveries and interest to claimants. 

The insurance commissioner's office examined around 300 claims from over seven years, and they found a lot of violations with Gerber Life's accidental death and dismemberment policies. According to US News and World Report, "Biological parents were initially denied benefits for children and had to send in clothing receipts and other unnecessary documentation to prove a parent-child relationship." 

Also, the claimants had to sue to get their benefits and the company didn't pay for any of the attorneys' fees, nor did they pay interest on untimely paid claims. 

My thoughts on this are as follows: This is the kind of thing that makes my job harder than it already is. Mistrust grows from news of a company not wanting to or dragging their feet when it comes to paying claims. I'm glad that the insurance commissioner's office was able to find this problem and fix it, but that's just one insurance commission out of fifty. Are we to assume that Gerber Life only dragged their feet paying claims in North Carolina? 

In other news, one of our carriers, Guaranteed Trust Life, is changing the age eligibility requirements for their Short Term Home Health Care plan. Beginning September 3, 2020, the minimum age will be raised to age 61. The rest of the policy will remain the same with benefits like a prescription card and access to their  "Ask Mayo Clinic" symptom assessment tool. 

From my perspective, I love this policy, but I wish they didn't raise the age. Statistically, about a third of people who are chronically ill are under the age of 65. As many people in their 40's and 50's see their parents need care and realize how expensive it can be, these people begin looking into their options for Long Term Care and Short Term Care products. I like to call these folks "forward looking" and hate seeing their choices for good plans decrease. 

My gut tells me that the Covid-19 pandemic has affected the number of claims filed, but I'm not completely sure.

The Guaranteed Trust Life product is priced so affordably that I had many people who were not yet 60 years old interested. The good news is that the carrier offers a full line of other ancillary products such as cancer and critical illness plans that are still available to many people of all ages. 

One other bit of related news is that Covid-19 is impacting pricing and benefit options for those considering long term care insurance, according to the American Association for Long Term Care Insurance (AALTCI).

According to AALTCI director Jesse Slome, "Insurance companies are raising rates for new applicants, they are changing benefit options and in certain states limiting the ages of applicants."

With over 40,000 deaths in nursing homes attributed to the virus, it's easy to see why the insurance carriers are concerned. These facilities are overwhelmed and, as a result of the virus, also understaffed. 

As you can see, we at Surf Financial Brokers try our best to stay on top of the news in our industry. Look us up on the web 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. And please subscribe to this blog!

4 Reasons To Buy Life Insurance?

When I give sales seminars I discuss how some things are easier to sell than others. For example, people want phones or cars or homes, but no one wants life insurance. One of the ways to test this out is by filling in the blank in the following sentence. "I am saving up for ______." A product that people will put in that blank are going to be markedly easier to sell because it is implied that someone is willing to put money aside for that item. 

Needless to say, I don't think I have ever met anyone who said they were saving up for a life, disability or long term care policy. The reasons for this could be that insurance is an intangible product. You can't touch it (you can touch a policy, but does it give you any satisfactions?), drive it or eat it. And most importantly, insurance is the one thing we purchase hoping to never use. 

Why do we buy insurance? Here are a few reasons.

1. It gives us peace of mind. As we tell our clients, you can lay your head on your pillow and sleep knowing that if something bad happens, you have mitigated the damage as much as you can. 
2. It provides security for you and your family. Life insurance means that you have loved ones that will still need financial help if you were to die suddenly. This is also true of a disability policy,which is just insurance on your paycheck to keep the family afloat if you are sick or hurt and unable to provide the income needed to pay the bills. Again, when I talk to groups I mention that those bills are going to keep coming.
3. Cash accumulations can provide down the road. Yes, life insurance can be a great way to take care of multiple concerns in the future. A permanent life insurance policy, if purchased early enough and structured properly by good agent, can also be used as a "retirement supplement" by providing a secondary income stream. 
4. You can fund a cause with someone else's money. One of the most interesting ways to give to a charity, non-profit or religious organization is to make them the beneficiary of a life insurance policy. Most people do not have $100,000 to give to their church or favorite charity, but they can afford the premiums for such a policy. And when they pass away and the organization receives the funds, it can be used for a variety of needs, from scholarship funds to building a much needed community center. (I know of one client who wanted a small plaque mentioning the donation was in the memory of his departed wife.)
   
   

There will always be those people who say things like, "I don't need insurance because I won't be able to use it." I don't want to call these people selfish, but if they were to die too soon, someone else is going to be stuck with paying those bills. Do you really want your loved ones to have to pay for your funeral costs? From personal experience, it is bad enough when you're grieving for a loved one and then have to give a credit card to the funeral home. 

In these days of Covid-19 one should seriously consider purchasing a policy. If you would like, go to our website and book an appointment for a "no pressure" conversation. And 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!

Professionalism In Life Insurance

Selling insurance is a highly regulated affair. Agents have to go through a series of exams and ongoing training in many areas, such as our duties and responsibilities as fiduciaries. In my home state of South Carolina, for example, we are required to have a portion of our continuing education courses include an ethics class.

All of this revolves around the professionalism of agents selling life and disability insurance, as well as other types of coverage, such as cancer plans, Medicare supplements and more. When talking to clients, agents have to discern to the best of their ability, what is in the interest of the client. That means asking a lot of questions and learning what the client's needs and budget are. 

I have had people get mad at me as I questioned them on their debt, income, family dynamics and work life. It is a process we in the business call "fact finding", but it can be intrusive to some. At the end of the process I usually ask for some feedback like, "How do feel about the conversation we just had?" I get all kinds of responses, from "uncomfortable" to "good". But the most common remark I hear back is, "You made me think of things I hadn't considered before." 

Getting people out of their comfort zone is part of being an effective life insurance agent. But the key is to do it professionally and tactfully. I have witnessed agents berating clients and squirmed as they made comments like,"What were you thinking when you took on all that debt?" or "Why would you want such a small policy?" Not good.

One of the reasons it is legislated to take continuing education courses is because of these kinds of actions. On many occasions I have wanted to scream at someone for making a bad financial decision, but I don't. Clients usually are aware of their own bad choices and giving them a hard time about it doesn't make me a good agent. Instead, I try to bring up the subject and think of ways "we" can resolve it. 

Another part of this discussion is how we deal with our senior clients. As mentioned earlier, many agents work in the Medicare market, which also can lead to sales in final expense life insurance and products dealing with chronic illness, like Long Term Care and our newer Short Term Home Health Care policies. I have colleagues who love to work in the "senior market" and are very good at it. They are patient and very low-key, which is how it should be done. Many times they'll ask the client if there are any adult children who need to be involved in the process and invite them to participate in the discussions. Again, it is all about ethics and doing the right thing. This is also a great way to build trust and earn referrals.

I, on the other hand, prefer to work with business owners and self-employed individuals. Nothing against seniors, but as an entrepreneur, I appreciate that these people typically have no benefits through work and have to cobble together a "package" to protect themselves and their families. Again, I have a duty to find out what their pain points are and find the best way to help. 

One thing that can get people off track is the word "commission". Yes, I work on commission, as do countless others in the insurance industry, but that doesn't make us all sinister and greedy. Are there a few bad apples? Of course, but as I've stated in earlier posts, those agents usually don't last long in the business. As the president of Surf Financial Brokers, I am always on the lookout for good agents, but I usually will only take on an agent who has been in the industry for at least two years. It's not a very scientific approach but it let's me know that the agent will probably stick around for the right reasons.

If you need help with your life or disability insurance, please let us know. You can book a phone appointment here. And as always, 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.  

4 Ways We Are Making Buying Insurance Easier

Buying insurance has always been a hassle for most people. I am fully aware that of the stereotype of the high pressure insurance salesman, pushing the client to spend more "for the family's sake". Life insurance agents are painted as cheesy villains, much like used car sales people. I remember commercials on TV that would mention "no salesman will call on you", which implied that you could get a policy without that horrible person coming to your home.

As an agent who has been in the business for years, I can attest that there are a few bad apples in the business. However, those people generally don't last long. Not working in the interest of the client (and only for a commission) eventually weeds them out. And the vast majority of us are generally doing what we think is in the client's interest. 

With all of that said, and against a backdrop of Covid-19, we at Surf Financial Brokers have taken measures to make purchasing life or disability insurance as easy as possible for you. Here are a few ways we have done this:

1. Our quoting engine in the top right corner of the page. Even though this is from just one of our carriers, it gives you a ballpark of what a policy may cost. You know your budget better than we do. Find out what you can afford and work from there. Whether you are seriously considering purchasing a life or disability policy, or just "kicking the tires", you can figure it out without an agent looking over your shoulder. 
2. Our scheduling calendar. Rather than trade emails back and forth to determine a time to discuss your insurance needs, you can now see what times we have available and schedule a time that works for you. We'll give you a call to discuss your needs and go from there. Our calls rarely last more than 30 minutes. 
3. Phone applications. As mentioned in an earlier post, we can take your application over the phone in most instances. Some of our carriers prefer to do a "drop ticket", in which we get your basic information and they have an underwriter take the rest of your information directly. Either way, you can be in the comfort of your own home or office without having to travel to an insurance office. 
4. Contactless delivery. Several of our insurance companies have now made necessary changes to get you your policy without having an agent have to be there to get signatures. 

One of the few good things the pandemic has brought about was much needed change to an industry that sorely needed it. And to honest, it's made our work easier too. Speaking for myself, I can now spend less time prospecting and more time helping the clients we have. As a result, our clients know that we will be available if needed. That gives them peace of mind knowing that their families' financial security is taken care of, and not wondering if the agent who sold them a policy is still in the business.

We realize that you can get a life or disability policy (we also offer a full line of ancillary products) anywhere, but we hope that by making these minor changes you will decide to give us an opportunity to help you secure your family's needs. 

And as always, 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 "Why" of Insurance Sales

Last week I was listening to an life insurance selling podcast (yes, I'm a nerd) and the topic was on why people get into selling insurance and the motivation to stay in the business. In other words, if someone were to ask me why I sold insurance, what would my response be?

Naturally, the correct answer was that agents want to help people protect their families' financial security. They gave examples of handing claims checks to grieving widows who asked, "Am I going to be okay?" while small children played in the background. Knowing that this family could stay in their home while making a commission was their calling and these agents felt like they had accomplished something when they convinced the client to buy a policy.

On the other hand, agents who were in the business just for the money were the ones who never lasted long. Their intentions were short-sighted and self-centered. I began to ask myself questions. Was this me? Am I making this all about me? Am I a bad person?

I thought back to 1985 when I first got into the insurance business. At 23 years old I really didn't know what to do with my business degree from North Carolina State University. No one was beating down my door asking me to come work for them and my savings was starting to shrivel, so I answered a classified ad in the local newspaper. "Make $20k a year, no experience necessary". 

Not being jaded enough at the time, I believed everything that the recruiter said. The great pay and working for a top-notch company was going to be the answer to all of my dreams. Looking back though, he never mentioned anything about helping families out when their time of need came. And the accident plan we sold paid a whopping $37.50 each day someone was confined to the hospital. The plan was a loser and my co-workers and I probably knew it. 

I left that job and moved on. Eventually I worked for companies that I had actually heard of. Some of those companies had training programs and from time to time I would hear the old "why are you selling insurance" question posed again. 

My position had changed though. Now I had become a student of the game. I did enjoy helping families and the proof was in my first claim check delivery. The carrier I was working with would ask us to deliver smaller claims (under $10,000) in person. This was to accomplish two things: 1) We could express our sympathies in person for the loss of a loved one and 2) to get referrals. In regard to the latter, I could usually get a few names after handing someone a check for a few thousand dollars, so that was easy. 

My first claim check delivery was too an elderly gentleman in a small town. At first I thought he was the deceased and was a bit confused. The house was old and there was a wooden wheelchair ramp which had seen better days. When the gentleman came to the door he acknowledged who he was and clarified that his son had been the one that died. He told me how his son, a truck driver, had been found dead in the cab of his semi, which was now parked in front of the house. Apparently a heart attack was the cause.

At that moment I realized that this man was in emotional pain and I was doing something good by bringing him this check. He beamed as he mentioned that this was the first good news he had received in a while. On top of it all, I learned that I was his first visitor in a few days as well, and since he was wheelchair bound, he didn't get out much. We talked for over an hour as he told me about his son and his own career. I found my "why". That short amount of time with him had brightened his day as well as my own. 

Over the years my "why" changed for the better. Over the years I've delivered several checks (most companies mail them out nowadays) but I still think back to that gentleman who helped me understand that my real job isn't selling a policy, but convincing someone to let me help them secure their finances at a time of loss and sadness. 

If you need help finding a policy for you or your loved ones, let us know. You can book an appointment on our calendar and we'll help you over the phone. 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.

My Plan Before Covid Struck

When I wrote my book on sales, "You're Going To Be Great At This!" in 2017, I had a strategy in mind for marketing it. I had been attending my local Toastmasters group for a few years and was working on my speaking skills. While there I met some people who were also aspiring authors and were working on presentation skills to support their books. 

My plan was to use my book, my speaking engagements and my insurance agency to all promote each other. If I spoke, I could mention the book and my agency. When meeting insurance clients, I could mention my book, etc. I could also speak locally to civic and other organizations on insurance topics, hoping to attain to clients, as well as talk up my book. 

Things were starting to happen. I was asked to speak to some new real estate agents about sales, and in my talks I mentioned the book, as well as life and disability insurance. One of the interesting things that happened was that I was enjoying it all. The change was fun and interesting. 

As I mention in the book, the first thing we are selling is ourselves, and I took that thought and ran with it. My agency grew a bit slowly, but steadily. Not only did I get a few more life insurance clients but I also met some agents who wanted to work with me. And I also met some great people along the way who were willing to give me some guidance, which I can always use. 

In a nutshell, I had created a PR firm with one exclusive client - me. 

Then the virus hit and things changed quickly. My insurance business dropped some, but not horribly. Since I typically meet people in coffee shops or their place of work, I just couldn't get out to see people with the quarantine in place.There was interest in some policies since a pandemic was hovering overhead. However the speaking engagements I had booked evaporated.  I was looking forward to doing one in particular, which was ironically at a long term care facility, speaking to a networking group consisting of good people who offer products and/or services to seniors. The people now had a whole new set of problems to deal with and I wasn't on their radar at all.

Taking a good look at the rest of the business community I could see others adapting to the brave new world. More video conferencing would have to happen. "Distancing while selling insurance" became my new mantra. And since I was selling myself, I needed to step up my social media game. More than ever, I was going to have to find more efficient ways to market my book, my insurance practice and my burgeoning speaking business. 

We've had the systems in place to take insurance applications over the phone for years. As a matter of fact, I've done it a handful of times and had no issues. Now I just needed to let people know that this was available as an option. Slowly, people are starting to realize that they can book an appointment with me online and have a good conversation to discuss their needs and budgets.

Using that knowledge, I transferred it to my other businesses. Where I was planning on speaking to a group in person, I can now use Zoom (or another app if needed) to speak to groups. And thankfully my book sales have continued to be steady. 

My hope is that when this is all over and we get back to a sense of normalcy again, I'll be able to get in front of a group, large or small, and give another one of my talks, either discussing insurance products we offer or the sales process. A colleague and good friend said that he thought the Covid situation was going to give us all a "reset" on all businesses, not just insurance sales. We are all having to make changes that may stay with us for a while. That's fine. I'm definitely flexible as long as it works. 

Let me know if you have had to make changes and if they are working. In the meantime, I hope you all have continued success and I look forward to seeing (or hearing) from you soon. 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.

Do You Consider Yourself To Be A Forward Thinker?

I spent this week cleaning out my father's house. He passed away in February after a battle with Parkinson's Disease, leaving us with some several bills. As I mentioned at the time, he had used the equity in his home to pay for his care instead of taking the advice of his son (me) to purchase long term care insurance when I brought up the subject years ago.

Hindsight is 20/20. However, as I go through boxes of old pictures of my parents when they were much younger and healthy, I realize that it wasn't really that long ago. With that in mind, I also know that it won't be too much farther in the future when I could be in the same situation.

Being chronically ill is an expensive proposition. Nursing homes, assisted living facilities and home health care are not cheap. Ask anyone who has had to pay for such care. But just as knowing that our own death is inevitable, we have to come to terms with the probability that we may need to find a way to cover these expenses, or be a burden to our children.

My father with is mother and sister, circa 1933

The whole point of buying any kind of insurance is to shift the burden to someone else, namely the insurance company. No one is going to lend you money for your care, as you won't be able to repay that loan. Nor does anyone really want to contribute to a GoFundMe page when you could be taking care of this from now.

Take some time to think it over. Do you want to be a financial burden? Do you want your family to interrupt their lives to care for you? They will out of love, but there are better options, some more affordable than others. Let us know if we can help, 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.

Will Covid-19 Kill the Long Term Care Insurance Industry?

I've been working with a client who expressed interest in purchasing a Long Term Care (LTCI) policy a few months back. As a matter of fact, he was already sold on the product because of a family member who is chronically ill and in a nursing facility. My client, as many in that situation, realized how expensive a facility can be and decided that he didn't want to be a burden to his family if he was in the same situation.

I sent him a couple of illustrations and we discussed the merits of each. He made a decision and we agreed to meet in a week to get the paperwork finalized. That's when things went awry. 

Wanting to make sure I was doing everything correctly, I called the insurance company and found out that due to the Coronavirus, the carrier had put a moratorium on new sales "until this thing blows over". That could be months, or never. 

After making another call to a brokerage house, I was told the same thing, but they added, "This virus is going to be the excuse some carriers will use to get out of the long term care market." Really? Now?

The LTCI industry has had a strange road in the last 20 years or so. Policies evolved from the 1980's as different types of care emerged. Thinking that they could make nice profits, many carriers jumped into business, and with little actuarial numbers to base premiums on. On top of that, no one predicted the steady rise of healthcare cost over the coming decades.

To mitigate losses, LTCI policies included a provision that the insurance company could raise the premiums if they needed to, typically with the approval of the state insurance commissioner. And after the Great Recession of 2008, more than a few took that step and implemented 17-20% increases on business that was "in force". One carrier did it twice! So much for being a forward thinking person. 

Along with the price increases, companies also stopped selling stand alone policies or sold a stripped down version of their previous products. And some carriers sold their LTCI books of business to other carriers. Many have replaced the stand alone policies to life insurance policies with LTC riders. 

The point of all this is that at the end of the day, many of these insurance companies are looking for a reason to get out of the business. The claims are higher than expected and the premium increases are squeezing potential buyers out of the market. And Covid-19 has prompted the few remaining carriers to "suspend" sales until further notice. 

What does all of this mean for you? If you are concerned about your long term care needs in the future, you still have some options. As mentioned earlier, there are life insurance policies, both term and permanent, with LTCI or "living benefits". Companies vary as to their offerings, so ask your agent to verify what you're purchasing. 

A few months ago, I discussed the Short Term Home Healthcare (STHHC) plan we offer. Many people don't realize that the costs of home health care can be double of that in a facility. In my opinion, this is a fantastic product and very affordable. 

The Coronavirus has probably put the last nail in many carriers LTCI coffins, but don't let that dissuade you from looking into your options from now. Click here to book a free fact finding phone call to find out what we can do within your budget. 

And as always, stay healthy and safe!

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