Why You Shouldn't Wait To Buy Life Insurance in 2025

When it comes to life insurance, many people tend to put it off. They might think, "I'm young and healthy, I don't need that yet." However, delaying this important decision can cost you more in the long run.

Here's why buying life insurance when you're younger is a smart financial move:

1. Lower Premiums:

   • Healthier, Lower Risk: Younger individuals are generally healthier, making them less risky to insure.
   • Longer Life Expectancy: Insurance companies factor in your life expectancy when calculating premiums. A younger age means a longer projected lifespan, resulting in lower costs.

2. Locking in Rates:

   • Protection Against Future Rate Hikes: By purchasing a policy early, you lock in a fixed premium rate. This shields you from potential future rate increases due to age, health conditions, or economic factors. *

3. Peace of Mind:

   • Financial Security for Loved Ones: Knowing that your family is financially protected can provide immense peace of mind.
   • Legacy Planning: Life insurance can help you leave a legacy, ensuring your loved ones are taken care of, especially if you have dependents or significant debts.

4. Potential Tax Advantages:

   • Tax-Free Death Benefits: In many cases, the death benefit paid to your beneficiaries is tax-free, providing a significant financial boost.

Common Misconceptions:

• "I'll Buy It Later": Waiting can lead to higher premiums and potential health issues that could make you ineligible for coverage.
• "It's Too Expensive": While the cost varies, there are affordable options, especially for younger individuals.
• "I Don't Need It Yet": Even if you're single and childless, life insurance can protect your assets and cover final expenses.

Taking the First Step:

If you're considering life insurance, it's best to start early. Here's how to get started:

1. Consult a Licensed Agent: They can help you assess your needs and recommend suitable policies.
2. Shop Around: Compare quotes from different insurers to find the best deal. An independent agent is best suited for comparing policies. 
3. Understand Your Policy: Familiarize yourself with the terms, coverage, and limitations of your policy.
4. Review Regularly: As your life circumstances change, re-evaluate your coverage needs to ensure adequate protection.

By taking proactive steps to secure life insurance, you're making a wise investment in your future and the future of your loved ones.

*Depending on the type of coverage you purchase, you may be "locking in rates" for 10, 15 or 20 years, or even a lifetime!

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!

Should I Buy Term Life Insurance?

When I talk with clients about the differences in term and permanent life insurance I get a wide array of opinions. While most prefer term coverage because it is much cheaper, others would rather "lock in" on a price with some sort of permanent coverage. 

Actually, they can both do well if structured properly, while at the same time, stay in a budget. The biggest problem is that many people don't see the value of their coverage and will drop the policy when financial strains appear. Ironically, this is the worst time to drop a life insurance policy that may only be costing less than $50 month. (Same folks who will insure their phone but not themselves.)

According to Term Life Online, only about 1% of term policies actually pay a death claim. They say that this is because most people outlive their policy or they let it lapse before the term has expired. And many are unaware that there is a provision in most term policies that will allow a conversion to a permanent plan, which is what they will need as they get older. 

 

I once worked with an agent who had been selling life insurance for much longer than I, and he loved to explain that a 10-year term life insurance policy was a "sucker bet". In his estimation, the odds of someone dying in the first 5 years of a policy after a paramed exam were astronomically low, so the person purchasing this policy was really insuring the second 5 years only. Sucker bet.

Of course, there are people who need a 10-year policy. I can say that almost all of these were because they needed to secure a loan of some sort. In that case, it's a great fit. A better strategy for most of us is to find a term that will carry us out as far as possible, or to "ladder" policies. I touched on this concept previously and highly recommend you consider it when structuring your life insurance needs. 

Remember that term can be great for your needs during your working years, as you can buy a lot of coverage for not much money, but you may want to look into permanent coverage for those later years, and the sooner you buy it, the less expensive it can be in the long run.

If you have questions or comments, let us know.  And in the meantime, please stay healthy and safe!

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 Life Insurance Through Your Work Enough?

Many of us who are self-employed don't always get to enjoy the perks of group benefits, like medical coverage and paid time off. But for those who do have jobs where the company pays for extra perks, those perks may be good, but not awesome.

One of the issues I run into quite often with people who have "bennies" through work is the idea that their group life insurance program is all they need. For some it may be, but for many people that coverage is much less than what they actually need and it more than likely won't be there if these people leave their jobs.

One of my first real jobs was working for a large company that did offer life insurance. They offered me coverage of my annual salary, which was next to nothing, and I could buy additional coverage, like 2 or 3 times my salary for a few dollars each month. There were no exams or health questions, and I got as much as I could for the price of a coffee at Starbucks. I was single and didn't have much debt, so I figured that if something were to happen to me, my family would have enough to pay for a funeral and maybe even have some hor d'oeuvres. In other words, the life insurance plan was appropriate for my needs.

However, there were co-workers of mine who were married and had children. These folks also had mortgages, car payments and other expenses that I didn't have. I seriously doubt that the small amount of life insurance offered was enough to give their families the safety net they needed if they were to die. And when the company was sold and employees started to jump ship like rats, they lost the little coverage they had.

Having life insurance coverage through your work is good, and most agents will take that into account when trying to determine how much you actually need. There are several other items to consider when you calculate your family's needs.

1. Outstanding debt. Mortgage balance, credit cards and car payments should be included.
2. Final expenses. Funeral costs and other costs associated with dying. For instance, many people will spend time in the hospital before passing away, and those deductibles may need to be met.
3. Replacing lost income. Your survivors depend on your income to take care of everyday expenses, as well as those bills that happen to pop up unexpectedly, like repairs for appliances and vehicles. 
4. Education costs. If you have small children, you may want to include the costs of higher education.

Having life insurance through work is good, but making sure you have enough coverage is even better. If you aren't sure how much you need, Our life insurance quoting tool has a built in calculator that will help you out. Give it a try and 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!

The Cost of Waiting

People generally don't want to have to take on a new monthly bill, especially if it is for something they do not plan on using, like life insurance. But putting off the purchase of a policy can cost you more money in the long run.

Life insurance, as well as disability and other types of insurance, are based on your age. As we get older the rate goes up until you "lock in" on a rate. Life insurance rates are based on risk, and the risk of you dying each year goes up as you age, thus making the premium increase. Buying life and disability insurance when you are younger can save you money in the long run while giving you the coverage you need in case something should happen to you.

This is the first reason why you should not put off buying insurance. As we age our health declines. Unless you are one of the few people who decide, in the midst of a mid-life crisis, to get back into shape, your health will more than likely get worse as you age. 

I currently have a client who is in desperate need of more life insurance, but her health issues have made it nearly impossible to find a policy for her that fits in her budget. Over the last 20 years that I have worked with her and her family, she has had tremendous weight gain which has brought on an onslaught of other issues, like diabetes, high blood pressure, cholesterol and joint pain. 

If she had taken a serious look at a policy when I first met her she would have had the coverage she needs now. Unfortunately, her best bet down the road will probably be for a "guaranteed issue" policy which will cost her a lot of money for just enough to bury her.

Leveraging your good health can be a great way to keep your insurance costs down. It also helps when overfunding a life insurance policy for accelerated growth inside a cash value policy. Permanent policies, like Indexed Universal Life (IUL) can be used for things other than the death benefit, like long term care expenses, chronic illness and a retirement supplement.

Another reason to buy early is to protect your loved ones. Just because you are young doesn't mean you don't have responsibilities. The sudden and unexpected death of a young parent can be even more catastrophic to a family's financial future because young children are involved, as well as the fact that the mortgage payment is mostly interest, leaving little to know equity in the home. That means the burden of making a mortgage as well as funding the educations of the kids could end up on the shoulders of a single parent.

Consider this for a moment. A permanent life insurance policy can be paid up early, so if a young person buys a policy that is paid up in 10 years (or at age 65), that piece of the financial puzzle is taken care of before old age and bad health sets in. And you won't have to deal with it later.

The same is true with most other kinds of insurance. Many cancer plans, for example are based on the age of the insured when the application is taken, thus locking in that rate for as long as one keeps the policy. Take advantage of your good health and young age. You'll be glad you did in the long run and so will your 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!

4 Things To Consider When Choosing A Term Life Policy

Over the years I have noticed that many of my prospective clients don't really know about the different types of insurance, such as term insurance or whole life. As a matter of fact, I just met with a young couple who said they needed whole life because "that's what my mother said to buy". When they saw the price of the whole life policy compared to a term and a universal life they were surprised at the cost. "Maybe Mom didn't know what she was talking about after all," the young man said with a chuckle.

Don't get me wrong. There is nothing wrong with whole life or any other kind of life insurance, as long as it fits your needs and your budget. As I always say, each insurance product is good for something, but not all insurance products are good for everyone. In the case of this couple, the best fit for their needs and their budget was a term life policy.

Term life insurance is exactly as it sounds. It provides coverage and a guaranteed rate for a specific term, say 15 or 20 years. It does not build cash value and you can't borrow against it. Think of it as renting a home compared to buying a home. If you are buying a home you can build equity and borrow against the value. Renters can't do either of those. 

The advantage of term life insurance is that, because it only provides a death benefit, it can be much less expensive and one can purchase a lot of coverage. For example, a 40 year old man who does not use tobacco and is fairly good health can get a $100,000 20-year term policy for under $25/month. That same person applying for a whole life policy for the same face amount would pay at least $100/month. That's a big difference in price. 

So what do you need to look for when shopping for a term policy? Here are a few suggestions.

1. Term length. How long of a term do you need? Be aware that the longer the term, the more the premium will go up, but it is better to be safe than sorry. If you have a 30 year mortgage maybe a 30 year term is a good fit. Also, you can consider how long it will take to pay off the house and to get the kids out of the house. For younger people, we offer term policies to age 65. 
2. Riders. Many term policies will offer optional riders you can add on to the policy. Most of my clients like the Waiver of Premium option because if they are disabled and unable to work, the insurance company will pay the premium for them. 
3. Other features. Some policies have riders that are built into the policy at no additional charge. We have one carrier that includes benefits for chronic illness and and critical illnesses in their term life policies. 
4. Convertibility. This is important for those people who may want a permanent policy at some point because they can "convert" part or all of the policy without any health questions. There may be limitations on when one can convert their policy so check with your agent.

If you are considering an affordable way to protect your family's finances in case something should happen to you, term life insurance coverage may be a good fit. Please feel free to leave questions or comments and let us know if we can help 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!

Can I Get A Term Life Insurance Quote?

We all know that life insurance is essential to every family's financial plan. Making sure your loved ones can stay in their home and continue to be financially stable gives one peace of mind. As a matter of fact, many of my clients have told me that they worry about what could happen to their family if the breadwinner of the family should die unexpectedly. Like many life insurance agents, I use this as the "what keeps you up at night?" conversation. 

Term life is affordable and is great to cover you during your "working years". That's usually the time when your family is growing, you are still paying off a mortgage and your kids will be going off to further their educations. A term life policy lets you determine the length of the term, whether it is 10, 20 or 30 years, or even longer depending on your age.

One of the problems we face in our everyday lives is that we just don't have the time to meet with an insurance agent to discuss our finances. There are too many other things going on in our lives that let us keep putting insurance off. There has to be a more convenient way to look for life insurance. 

What if you could look for an affordable term life policy when it is convenient for you? And what if you could just answer a few health questions and not have to bother with a nurse coming to your home or office to conduct an exam? With Covid still with us that is a concern! 

A few reasons you need to consider term life are:

• No exam needed* for most policies.
• You select the amount needed. 
• A Conversion Option that lets you change your policy to a permanent plan without health questions.
• A Return of Premium rider (optional) that offers the best of both worlds - life insurance protection if you need it and money back if you don't!

You can also cover a spouse or other additional insured, as well as cover your children.  The best part is that you can keep it within your budget!

To make it easy and convenient for you, we have made the link** available on our website, but in the meantime, you can click here to run your own quote. Have the quote emailed to you and one of our agents will be available for any questions you may have. 

Many of our clients in North Carolina, South Carolina, Virginia and Tennessee have taken advantage of how easy and simple it can be to run their own life insurance quote. No matter if you are in Knoxville, Nashville, Raleigh or Richmond, we can help you out. 

Being a virtual agency has also given our clients a peace of mind during the pandemic. By helping you right over the phone, you don't have to be concerned about your safety during these times. 

We know you money is tight these days and everyone is working on a slim budget. But we also know that if something were to happen to you or a family member, your families finances could be in turmoil. Take the financial burden off of your loved ones by looking into a term life insurance policy. The first step to financial security is getting a quote. 

We look forward to helping you and in the meantime, stay healthy!

*Up to $250,000

**The same link will help you run a quote for whole life and disability insurance. 

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!  

Have Life Insurance? You May Need More

You probably need life insurance if others are depending on you. If the only coverage you have is through your job, though, you may not have enough.

Fortunately, buying life insurance has gotten easier in some ways during the pandemic. Plus, coverage may be cheaper than you think.

The rising COVID-19 death toll has led more people to at least think about their life insurance needs, and many have taken action. One in  four Americans who have life insurance say they purchased or increased their coverage because of COVID-19, according to a NerdWallet survey conducted Oct. 29 to Nov. 2 by The Harris Poll. Many of those who purchased or increased their coverage were motivated by fear of being diagnosed with the disease (30%) or knowing someone who had (29%).

A survey by insurance industry trade group LIMRA this summer found nearly 6 in 10 Americans (58%) say they have a heightened awareness about the importance of life insurance, and about 3 out of 10 (32%) who were shopping for life insurance said it was in response to COVID-19. The number of term policies, the most popular type of life insurance, rose 10% in the third quarter compared with a year earlier, LIMRA found. That was the largest increase in 18 years.

“Obviously, the pandemic is making people much more sensitive to their mortality,” says Alison Salka, LIMRA research director. “So we see more people aware of the need for life insurance.”

This is very similar to the months after 9/11 when people realized they could die sooner or unexpectedly.  

Still, LIMRA has estimated that 30 million American households don’t have coverage, and another 30 million don’t have enough. The average coverage gap between what people have and what they need is about $200,000, LIMRA says.

People think that if they have life insurance through their job it is more than enough, but they haven't really crunched the numbers to see how much their family will need if they die prematurely.

Employer-provided life insurance policies are typically capped at certain dollar amounts, such as $20,000 or $50,000, or limit coverage to one to two times an employee’s annual pay. That may seem like a lot, but parents with young children may need 10 times their salary or more to replace their incomes until the kids are grown.

Even if your need is more modest — your partner requires your income to pay the mortgage, for example — an employer-provided policy might fall short. Plus, you typically lose your coverage if you lose your job, as many Americans have during the pandemic.

Having your own policy means your beneficiaries will remain protected. And thanks in part to the pandemic, you may be able to get coverage faster and without a medical exam (no needles!).

Increasingly, insurers are automating and accelerating the application process, LIMRA’s Salka says. Instead of sending someone to your home to check vital signs and collect blood and urine specimens, some insurers are waiving exams or are exclusively using exam and lab data provided by the applicant’s physician. This trend was already underway, but social distancing and other pandemic challenges mean more insurers are adopting these practices.

Life insurance is often cheaper than people expect. A 30-year-old woman in excellent health might pay $193 a year for 20-year term policy for $500,000. A 40-year-old man, also in excellent health, might pay $341 for the same coverage.

Term insurance covers people for a specified period of time, which is typically 10, 20 or 30 years. (In a previous post we mentioned there are now terms up to 40 and 45 years) Term policies are significantly less expensive than permanent life insurance, which has additional features such as a cash value that can be borrowed against and that grows over time.

But the higher costs of permanent policies can tempt some buyers to skimp on coverage. If you do need life insurance — and you probably do if someone would be financially impacted by your death  — then your priority should be getting enough.

How much do you need? We usually consider things like:

• Final expense and other costs associated with death. For instance, if you were in the hospital before passing away.
• Debt. Items like the balance on your mortgage, credit cards and car loans. 
• Education costs if you have kids and want to take care of  your education. 
• Income replacement. Your family will still have day-to-day bills to take care of, like car repairs or needing a new stove. 

If you have need any help or have questions drop us a note or book a phone appointment. And in the meantime, please stay healthy!

 

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

Why Younger People Should Invest In Life Insurance

Younger adults have always been a difficult market for life insurance agents. They typically feel they are indestructible and will live forever. On top of that is the feeling that life insurance is unnecessary because they tend to marry later in life and don't have the responsibility of family. Nothing could be farther from the truth though.

Our young adults are missing one vital piece of information that could really work in their favor and that is they could be leveraging their good health and young age. Just because they don't think they have a need for life insurance now doesn't mean that they won't need it in a few years. 

Life insurance is cheaper for those who are younger, healthier and don't smoke. Everyone knows that. And for those who are in their 20's, taking advantage of this could really benefit them as they age. Whether they are looking for just a term policy or something that can build cash value down the road, there's a good probability that our younger people can get a great deal.

For instance, purchasing an Indexed Universal Life (IUL) policy and overfunding it from a young age offers a much better opportunity of growth than a traditional whole life policy would. These policies also include features like early withdrawal for income streams, living benefits that you can use while you're still alive, and some tax advantages. 

I often tell the story of a young attorney who really didn't care about the life insurance portion of the policy as much as he wanted a safe place to put his money and retire a bit earlier than most. The illustration I rand for him showed some great tax-free withdrawals (in the form of a loan) as well as the peace of mind knowing that if something were to happen to him his wife would be okay financially. 

That same policy for one of his colleagues who was just a couple of years older but was overweight and a smoker couldn't produce the same results. For him, the "cost of insurance" would have been taken most of the gains of the policy off the table. Again, health matters.

But let's say you don't have the income to spare like the young attorney did but you still want to lock in on a great rate for life insurance. Traditional term policies were always the way to go for coverage during your working years. The problem was that the terms usually maxed out at 30 years, leaving people uninsured (or uninsurable if their health got bad) when they needed the coverage most. 

For these people, we now have a carrier offering a 40- and 45-year term policy, which can lock in a rate to age 65 or even 70 years old. Of course, underwriting is still applicable, but it's still a great deal. These policies are aimed at the "millennial" market who are forward thinking and know that the future will be here faster than expected. 

If you are young, healthy and don't smoke (or know someone who falls into this category), use the "Get a Quote" button on the upper right of this page to see if a term policy would fit in your budget. And if you want an illustration for our IUL product, book a a phone appointment and we'll be happy to talk with you to find out what your goal is. 

In the meantime, stay healthy and let us know if we can help you secure your family's financial future.

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 Term Or Permanent Life Insurance?

Life insurance gives you a way to protect your loved ones avoid financial stress surrounding your funeral and help ease the transition to life without you.

When you’re shopping for life insurance, you have options. You can choose between multiple insurance providers. You can pick the amount you want your policy to pay out when you pass away. You’ll also need to make a decision about how long your policy will last, and that usually means choosing either term or permanent life insurance.

When it comes to term vs. permanent life insurance, what’s the difference? Which policy type is best for your situation? Hopefully this will help you understand the basics to both permanent and term life insurance policies.

What Is Term Life Insurance?

Term life insurance gives you life insurance for a set term. That means you choose a policy and a death benefit (the amount your beneficiaries will get when you pass). But you also choose a term associated with your policy.

At the end of that term (e.g., 10, 20, 30+ years), your policy is set to expire. At that time, you have options. You can let the policy expire, renew it for a new term or — assuming your insurer allows — convert it to a permanent life insurance policy. Many carriers will give you an option to convert your policy to a permanent policy during the term.

Why would you choose life insurance that will expire after a certain time? Simple: term life insurance policies are significantly cheaper than permanent life insurance policies. And, in some cases, you may feel you only need life insurance for a certain time.

For example, some people buy term insurance with a term that lasts the length of their mortgage or until their kids will be done with college. That way, your family can get through major financial milestones with or without you. Once the house is paid off and the kids are educated, you may not be as worried about leaving your partner without your income.

The amount you’ll pay for your term policy depends on a few things: your current age, the term of your policy and the size of your death benefit.

CNN Money has a helpful example to give you a ballpark idea. They say that a healthy 35-year-old male buying a 20-year term policy with a death benefit of $500,000 will pay about $430 a year. At 50, that same male will pay $1,300 annually for the same policy.

Most term life insurance policies (97%,according to the Insurance Information Institute) are level-term policies, meaning you decide a term with your insurer and your death benefit stays the same throughout the term.

But there are other types of term life policies, including yearly renewable policies and return-of-premium policies. 

Of course there are pros and cons to term life insurance. 

Pros: Less expensive, flexibility in choosing a plan that meets your needs and it's easy to understand. 

Cons: Policy expires at the end of the term, which could leave you with nothing. Also, it lacks cash value.

What is Permanent Insurance?

You can probably guess from the name: permanent life insurance is a type of life insurance that stays in effect throughout your entire life. Once you buy your policy (assuming you pay your premiums), your death benefit is guaranteed for your beneficiaries, whether you pass away in 10 years or 80.

But there’s more to the puzzle here. Most permanent life insurance policies come with a cash value component. As you pay your premiums, that money accumulates with your insurance provider. Depending on the type of policy you choose, you might get returns on that cash value in the form of dividends.

There are three different types of permanent life insurance:

• Whole life insurance: You get permanent life insurance plus a cash value component that essentially functions as a savings account. You earn dividends on your policy’s cash value component.
• Universal life insurance: With this policy, you get permanent life insurance plus a cash value component that earns interest based on money markets. You may also be able to adjust your policy’s death benefit (assuming you pass a medical exam). There are a couple of versions of Universal Life and in recent years have proven to be very suitable for many people. 
• Variable life insurance: This gives you the most flexibility — but also the most risk. You get permanent life insurance and you can invest your cash value component how you want (stocks, bonds or money market mutual funds). The issue is that if your investments don’t perform well, the losses can eat into your death benefit.

The cost of your whole life policy depends on a bunch of different things: your age, your current health, the type of permanent life insurance you choose, the amount of your death benefit, the insurer you choose — the list goes on. We’d love to give you a figure for how much you can expect to pay, but there are too many variables here.

Generally, be prepared for permanent life insurance to cost between five and 10 times more than a term life policy. For all that extra money, you get a policy that won’t expire and a potential earnings vehicle while you’re alive.

There are also pros and cons of permanent life insurance.

Pros: Policy will last for life and accrue some cash value. And if you have some medical concerns after the policy is issued, it won't affect your policy. 

Cons: More expensive, can be more complex and difficult to understand, and the cash value may disappear if the policy isn't structure correctly.

Despite what the financial "gurus" in the media profess, there is no "one size fits all" approach to this. Everyone has different issues, like medical conditions, the budgets and other financial considerations which may determine the face amount of the policy. 

A short conversation with us can help determine how much coverage is needed in your budget. Book a phone appointment to have a quick talk to determine your needs and how we can help you secure your family's financial future. 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! 

Getting Our Priorities Straight During the Holidays

With the holidays right around the corner I thought it would be appropriate to share a story from years ago when I was working for a very large insurance carrier. The agents were required to meet once a month and discuss our sales production numbers, and part of the process was that the veteran agents would give advice to the newer sales reps. 

As was usually the case in December, sales were down across the board. People generally don't buy much life or disability insurance before the holidays, with the exception of signing up for their benefits through work, so the agents were not too happy. I was one of them.

I shared how I would sit down with a couple to discuss life insurance, for instance, and would hear interesting excuses for not buying. "The holidays are coming and I need the money to buy a television," or "The new Iphone is coming out this week." 

That made no sense to me. "You have a wife and kids and a mortgage. If you were to die unexpectedly in the next few days, that cell phone isn't going to help your family stay in their home," I exclaimed to no avail.

Herein lies the problem for us insurance agents sometimes. We deal with people who mean well, and want to do right by their families, but their priorities are out of whack. The short term goals have overtaken the long term goals. Living in the moment is their mantra because "who knows what the future holds?" If they really want to know what is in store for them they should ask their elders. 

As I expressed these concerns to my colleagues at our sales meeting, a veteran agent laughed. "I know what you mean. Everyone is living in the moment, especially younger people. They think they are going to live forever and nothing will happen to them," he said. "But you have to help them understand that is wrong."

He continued to talk about the whole situation. "The holidays should be a time to emphasize the family. That should be their focus and if it isn't, then you need to make it their focus." It made sense. 

Of course we all want to have some nice gifts under the tree for the kids to open on Christmas morning. But trying to outdo ourselves (or anyone else for that matter) isn't what the holidays are all about. Wiping out our bank accounts at the end of the year over a phone or a television actually can make our festivities (and the new year) miserable. 

More importantly, all the gifts in the world can't make up for the loss of a loved one. So my message for you this year is this: It's fine to splurge a bit. This year has been tough on everyone, but remember that the holidays are about family, whether they are immediate, extended or otherwise. Make sure your priorities are in the right order. 

My job, as an insurance agent, is to make sure that your family will be able to continue to live comfortably if something should happen to you. Your priority should be making sure that your family is able to stay in their home and continue without you were to die unexpectedly. 

As I talk to my friends and clients I am learning that many have decided to cut back a bit on expenses this year. One less stocking stuffer or electronic gadget won't be missed. My wish for you and yours is to enjoy your family as much as you can. 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!

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!

What Makes Life Insurance Rates Different?

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

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

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

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

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

"So this is about convenience?" I asked. 

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

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

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

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

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

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

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

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

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

6 Term Life Insurance Issues To Be Aware Of

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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!

What's The Deal With State Insurance Licenses?

If you have a driver's license in one state, you can still drive legally in other states. The same holds true with marriage. If you are married in one state, the other states will recognize your marital status. 

This isn't true if you have an insurance license, which makes selling insurance in the United States a tricky affair. As a licensed insurance agent, I have to hold a "residence" license, which as the name implies, is from South Carolina, where I reside. However, if I want to sell a policy to someone from a different state, I have to pay that state a separate fee for a "non-resident" license. Imagine having to get a new driver's license in every state you drive through.

The basic rule that is taught to insurance agents is that you should have a license in the state where the client's feet are in at the time of the application. If I am in South Carolina but I'm taking an application on someone who is in Tennessee, I have to hold a valid non-resident license for the Volunteer State. 

As an agent who markets on the internet, I have to be cognizant of where clients are calling from. I am licensed in three states currently (South Carolina, North Carolina and Virginia), and hope to get some paperwork finished with Tennessee soon. 

For an independent agent like myself, this can create a lot of problems that can be very expensive. Each state has its own fees, which come due every two years or so. One solution that I devised is to have other agents on hand who have licenses in other states. For example, my great colleague Jeanne Doran, is licensed in the state of Maine. We also have another agent, Travis Burt, who is licensed in 12 states. This helps us tremendously when clients contact us from out of state. 

But from a insurance company perspective, dealing with all of the state insurance departments can be a logistical nightmare. Let's assume that the ABC Insurance company has a life insurance product, a whole life policy. ABC takes that policy to the insurance commissioner of Virginia, for example, and has to get it approved. The insurance department must also approve the brochures, applications and any other applicable forms. 

Now let's assume that ABC is wanting the same policy approved in Texas. No problem, except they would like to have a section of the brochure printed in red ink instead of black. 

Imagine having to do that with a couple dozen products in all 50 states. Each state would have their own version of the necessary forms and applications. And some of the states may not approve of the insurance product at all. 

All of this costs companies and agents a lot of money each year. As the world gets smaller through the world wide web, the insurance industry needs to work with insurance commissioners to make sure that the residents of a state have access to the latest and most innovative products. As Surf Financial Brokers grows its network of agents we hope to be able to provide great life, disability, long term care and short term home health care insurance polices, as well as our super line-up of cancer, accident and critical illness plans.

Please check out our website and let us know if we can help you. 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 1)

The Covid_19 has now struck at the highest levels of government and has illustrated that no one is immune to virus. For many of us, the pandemic is something that is a concern, especially as businesses and schools begin to reopen.  Whatever virus "fatigue" that was there has quickly evaporated. 

As I was enjoying a meal with a couple of close friends this weekend, the topic of the pandemic reared its ugly head. One of my buddies asked if there was any particular insurance product that would help people who were concerned about Corona.

Actually, there are several products that come to mind during these times. Each insurance product has a need and can help those who could be worried about the virus ravishing their family's financial situation. To be clear, these products are subject to underwriting and may not be available in all states. Let's look at a few.

First of all, there is life insurance.  After 9/11, the American people had a wake-up call. They realized that they could die at any given minute without warning. For about 6 months after that tragic event, life insurance sales spiked. Sales of life insurance have risen again with fears of the virus working its way through families. 

If the main breadwinner of the family should die unexpectedly, the rest of the family could be in a world of financial pain if there is no life insurance in place. Making sure that your spouse and children can maintain their home, pay off any outstanding debt and insure that your kids can afford a good education can be accomplished with an affordable life insurance policy. 

What happens if, God forbid, you should lose a child due to the virus. It's a terrible thing to consider. Unfortunately I have attended many a fish fry fundraiser to help pay off the cost of a child's funeral. People are hesitant to purchase insurance on child. As one parent told me, "I don't want to profit off of my child's death." No one says you have to profit at all. But there will be expenses and if there is any money left over from the insurance policy, the parents can set up a scholarship fund or contribute to a charity "in memory" of their child. 

If you are confused as to whether you need term life insurance or a permanent plan like whole life or universal, we can have a conversation to help you find out what your needs are, as well as your budget. 

The second type of insurance I would consider is Disability Income Insurance (DI). A good DI plan should be in place to replace the income of the person who is sick or hurt and not able to work. As we know, the survival rate is high among those who contract the virus, but it can still keep you from working. As stated before, your most valuable asset is not your home or car or investments, but your ability to earn a living. And when someone is out of work due to an injury or illness the bills don't stop coming. 

Many people don't seem to realize that they are one medical emergency away from dire financial straits. Did you know that over 80% of all disability claims are due to illness? And that 62% of all bankruptcies are due to medical costs? Having a DI policy in place can keep a stressful situation, like being seriously ill, from becoming much worse when the bills start to pile up.

These are just a couple of the products that can help you if you are concerned about the virus, but there are more we will cover in the next post. In the meantime, please continue to social distance and 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 This Week

Again, I wanted to share some news items with you from the world of insurance, with a wee bit of comment added. Feel free to tag someone who would find this interesting. 

We just learned this week that life insurance companies are paying out far fewer life insurance claims due to Covid-19 than they initially expected. The reason for this is that the disease is killing a disproportionately large number of people who don't have life insurance. 

Even though anyone can apparently contract the virus, it is mostly striking older Americans and minorities. Older Americans typically carry smaller policies than those who are still in the workplace. As a group, seniors don't have to worry about paying off a mortgage or making sure their kids can pay for college, because the kids are grown and have their own children. 

According to an article posted on the Wall Street journal website, " In a pattern dating back decades, Black Americans typically have bought modest policies aimed at paying burial and related costs, rather than bigger face-value policies, according to life-insurance agents and historians. Detailed data on policy ownership by race is hard to come by. Since the 1960s, U.S. life insurers quit using race as a factor in underwriting and pricing policies, so they quit collecting race information, executives say."

The two demographics have been hit hard by the virus and sometimes something like this acts like a wake-up call. Now is a great time to consider purchasing additional life insurance.

In another piece of news, the Tennessee Department of Commerce and Insurance (TDCI) and the National Association of Insurance Commissioners have created an online tool to help people find life insurance and annuity benefits. Thus far in 2020, over $7.4 million have been located. 

“I am pleased to see that Tennesseans are using the Life Insurance Locator Service to find their loved ones’ benefits during this year which has brought unprecedented hardships to Tennesseans,” said TDCI Commissioner Hodgen Mainda. “As part of Life Insurance Awareness Month, I remind Tennesseans to educate themselves about the importance of life insurance today so they might be better prepared to be a beneficiary in the future.”

This is the kind of story we at Surf Financial Brokers enjoy to see. At the essence of our business is a promise made by the carrier. That promise, that if you die they will help your loved ones by giving them money when they need it most, is important to all in the insurance industry. However, when people move or don't update their beneficiaries often, it can be difficult for an life insurance company to pay the claims. 

With that said, apparently many people who are beneficiaries of policies either don't know they are, or have no idea where the policies are located. We ran into this scenario with my own father's passing. His beneficiaries had predeceased him. Obviously he had not updated his beneficiaries in years. And we found one policy by accident when I called to update someone that he had passed away.

As agents selling life insurance, as well as disability, cancer, accident and long term care plans, a paid claim let's the client know that we stand behind our promise. That translates to how valuable our work really is to us. 

Let us help you find a policy that is in your budget. And for your convenience, you can even schedule your own appointment here. And in the meantime, please stay healthy!

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