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!

Cash When You Die, Cash When You Live Part 2

In the previous post I explained how Indexed Universal Life (IUL) is a great alternative for those who would like their life insurance policy to be useful while they are still living. The growth in the policies, which builds cash value, is based on an index of the stock market rather than interest rates. That means the growth inside the policy can increase faster in this low interest rate environment.

How is the IUL a way to help you in your retirement years? First, let's acknowledge that this is first and foremost life insurance. There is underwriting involved and for those who are young, healthy and do not smoke, the rates will be much less expensive. With that in mind, the growth of the cash value of the policy will greater as well for those in good physical shape.

One of the concepts of permanent life insurance is "over funding", which means that one can contribute additional premiums to the policy. This has to be done within certain limits, per the IRS (life insurance has a special tax status that can be discussed at another time), but it helps accelerate the cash value. Accessing that cash can be beneficial if one has emergency expenses, as it can be surrendered or taken out of the policy as a loan. 

Taking the money out as a loan has advantages and disadvantages. The money taken from the policy is tax-free, as it isn't income. On the other hand, if you die, your beneficiaries will get the death amount of the policy, minus the loan amount. Also, the interest can be a bit high, usually around 8%.

But there are other ways to use an IUL to your advantage when it comes to retirement. Let's compare it to a Roth IRA, which is one of the better vehicles out there. The Roth IRA has the following features:

• Post tax dollars are contributed.
• Tax-deferred growth.
• There is a limit as to how much can be contributed ($6000 for 2021).
• You have to be at least 59 1/2 years old to access the money without tax penalties.

On the other hand, here are some the features of an IUL.

• Post tax dollars are contributed.
• Tax deferred growth.
• There is NO limit on contributions.
• You can access your cash value at any age.
• There are living benefits for chronic illness and critical illness.
• If you die, the policy will pay your beneficiaries the face amount, minus any deductions or loans.

As you can see, an IUL can be a great alternative to a Roth IRA. People who are younger, healthier and don't smoke can make the most of this type of life insurance policy, so it obviously doesn't work for everyone. It also helps if the insured has the means to over fund the policy.

Years ago I had a client who used an IUL in an interesting way. Since he had been over funding it early on, it had plenty of cash value within a few years. This gentleman, who loved to look for a good investment, would see a parcel of land and decide to purchase it. He didn't want to go to the bank and fill out a loan application, as that was too long of a process, so he would call the insurance company and borrow against his policy to make the down payment on the property. Usually he would get his check within a few days.

He would repay the loan amount within a few months and do it again if he saw another good investment property. In essence, he was "warehousing" his money in the IUL for future investments. In the meantime, he still had plenty of coverage in case he died.

If you would like more information on IUL's or a quote, stop by our website and fill out a contact form so we can get back to you. 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!

4 Cancer Insurance Options That Can Work For You

I often discuss cancer and it's impact on a family. Yes, there is the toll it takes physically as someone undergoes treatments, and despite all the advances in research on the disease, many continue to die from various types of cancer. 

There is also a huge financial impact on survivors and their families. Cancer treatments are expensive and even though health insurance picks up a large portion of the tab, there are still some huge gaps not covered by major medical policies. Deductibles, co-pays, travel, and other out-of-pocket costs can wipe out a family's finances. Not to mention the lack of income if the cancer patient is the breadwinner of the family.

As previously discussed on this blog, there are several cancer insurance plans available on the market. There are also non-traditional plans that can also help cover the expenses related to having cancer. These plans pay directly to the insured, not the hospital or the doctor. Here are a few. 

1. Cancer treatment plans. These are the insurance plans that most people think of when considering cancer insurance. They generally pay a structured set of benefits for various treatments. For example, if someone is hospitalized for cancer, the policy may pay a set amount of money, say $100 per night. There may be another benefit if surgery is necessary. Wigs (for hair loss as a result of chemotherapy) may even have a benefit. 

Many of these types of plans are offered through "worksite" companies, which means you can get them through your work if your employer agrees to deduct the premiums from your paycheck. If you are self-employed or a business owner, you can get an individual plan and the costs is just about the same. 

A cancer treatment plan pays the way it sounds. As you are receiving treatments, you can remit the receipts to the insurance company to continue receiving benefits. As cancer treatments are not a "one and done" scenario, you could continue receiving benefits for months. With that in mind, a cancer treatment plan has the potential to pay out a lot of money, but it can also be difficult for someone who is seriously ill to keep up with the paperwork. If you would like to run your own quote on one of these plans click here. 

2. Lump sum plans. Unlike the cancer treatment plan, these plans pay a lump sum of money when someone is diagnosed with an invasive cancer. There's no need to save receipts and you can choose the amount you want, along with your premium amounts. Many people prefer these plans for their simplicity. 

One of our lump sum insurance carriers has included genomic testing with their plan. Your doctors can send a biopsy sample to a laboratory where the sample is examined. The lab will in turn contact the doctors and give them suggestions as to how to treat the cancer. All of that is included at no extra charge and can help dramatically. If you would like to see a short video on how it works, click here. 

3. Critical illness insurance. Critical illness plans generally cover several specifically named illnesses or health events, such as heart attacks, strokes, kidney failure and major organ transplants. Sometimes cancer will be included on the list. These plans are paid in the same way as the lump sum plans in that you choose a face amount when you apply. 

4. Life insurance will critical illness riders. Life insurance carriers are starting to offer riders that cover critical illness (and chronic illness) into their policies, and many are included at no extra charge. For younger people this can be great as the premiums are low. I always emphasize to my clients that they are buying life insurance, first and foremost, so the underwriting process can be an issue. 

This isn't the cheapest option as most carriers only include the riders on their permanent plans. However, we have found one carrier that offers them on their term policies. 

On all of these plans be aware that there may be some underwriting involved. If you have had an internal cancer in the last few years you could be denied coverage. Also, skin cancer isn't always covered. 

If you have questions about any of these options let us know. Our website has contact forms and a page where you can book a phone appointment that works on your schedule. In the meantime, please stay healthy!

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

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!

Why Purchase a Cancer Insurance Policy?

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

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

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

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

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

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

What is a Cancer Insurance Policy?

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

What Cancer Insurance Policy Solutions does Manhattan Life Offer?

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

Cancer Care Plus and Specified Disease Insurance Benefits

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

Cancer First Occurrence Insurance Benefits

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

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

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

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

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

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

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

Is My Agent Looking Out For My Best Interest?

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

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

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

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

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

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

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

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

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

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

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

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

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!

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. 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!

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!

Do I Need An Accident Insurance Plan?

Everyday thousands of people seek medical attention for accidents large and small. From getting cut while making dinner and needing a few stitches, to serious automobile accidents, urgent care centers and emergency rooms are filled with people needing medical attention. 

I first got into the insurance business selling accident plans door-to-door in rural areas. And even though I didn't care for the policy at the time, I did see the value as our customers in the farming community would get hurt doing day-to-day chores. When I went to work for a large worksite benefits company I heard stories from people everyday about how they used their policies often, not just for themselves, but for their families. 

These stories were interesting and sharing them helped me to get more people to understand why they needed a good accident plan. For example, one nice lady was married to a firefighter and had purchased a plan that covered the entire family. Her husband was constantly getting hurt on the job, which was understandable. Burns, lacerations and other perils were a given in his line of work.

But when he was off the clock, he was just as vulnerable. He loved to hunt deer, and apparently had an issue with falling out of the deer stand on occasion. His wooden boat, which he used for fishing when the weather was good, had some rusty nails that he sat on several times. It got to the point where the wife felt bad for contacting me every time he needed to file a claim and made copies of her own claim forms. 

If you are active or have kids who play sports, an accident plan may be the right fit for you. Unfortunately, people sometimes forget they even have an accident plan. During a chance meeting with a client of mine he mentioned that his daughter had been playing basketball at the local rec center a month earlier. She went in for a layup and her legs were cut out from under her by another player. At the hospital she was treated for a small cut but had to have some minor surgery to repair a muscle tear. 

My client lamented that his medical insurance payed the majority of the expenses, but only after the deductibles and co-insurance minimums were met. When I reminded him that he actually had a policy in place to help offset those out-of-pocket expenses he lit up. We filed a claim and he was very happy with the results. 

Your occupation usually isn't going to be a factor and since there are no pre-existing conditions for accidents, people are covered right away. My clients come from all kinds of backgrounds, such as realtors, mechanics, artisans and business professionals. And you can choose coverage for off-the-job or 24 hour on or off-the job. 

Most of these policies even cover dismemberment and cover loss of sight, limbs (such as arms, legs, fingers and toes). There are even benefits for accidental death, which doubles if you were to die in a "common carrier", like a bus or plane. 

There is also an optional rider for disability income, which can help replace lost wages due to an accident. That can be important since for most of us, our most valuable asset is our ability to earn a living.

And just to add a little more value, there's also a wellness benefit. You're going to get a check up once a year anyway, so go ahead and get a few more dollars sent to you for that. 

Recently I met a woman whose husband had died while cutting down some trees in his yard. A large log rolled onto to him and he passed away in the ambulance on the way to the hospital. She told me that he had just turned down an opportunity to purchase an accident plan a few weeks before he died. Even though it was too late for him, she made a decision to purchase a plan for herself. 

I hope you seriously consider an accident plan. Especially since all the benefits go directly to you to spend how you need to, and not to the doctor or hospital. For a quick recap of some of the coverages from one of our carriers, click here. And if you have any questions please let us know. 

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

Life Is For Living (Great Video)

As we go through September and wind down another Life Insurance Awareness Month (LIAM), I hope you all are doing well and keeping your spirits high. There is a lot going on in the world that can add stress to all of our lives. The Covid-19 pandemic, racial strife and political tensions are just a few things that are in the news. But there is also all of the daily issues we deal with personally, such as employment and financial burdens. 

The holiday season can be crazy in a normal year. As I watched the news a few nights ago I was struck by a story about how shopping for gifts will be different this year. A lot more online sales, less people in the malls and shopping centers. Of course, we all know that the emphasis should be on our families and loved ones, not spending money we don't have. 

I think back to a sales meeting years ago when I was working with a large insurance company. Most of the agents, myself included, were bemoaning the fact that no one wanted to buy life insurance during the holidays. No one wants to take on another bill when there's a flatscreen TV to be purchased. 

Our manager was leading the meeting and rolled his eyes at our complaining. "You don't get it," he said as if we were a bunch of crybabies. "You say you sell life insurance, but you don't understand who you are selling it for or why you are selling it!"

Then the manager launched into a lengthy diatribe which made sense to me. I will spare you all of the details but the essence was that we, as life insurance agents, were not communicating our message properly, that we were not selling something to be used by the client (assuming that was who we are insuring), but instead it would be used by the client's family. The only thing the client would get out of it was the peace of mind knowing that if something should happen to them, their spouse and children would be able to stay in their home and continue their lifestyle without more financial worries thrown onto them. 

It all made sense to me, but how does one communicate that message during the holidays? As a father and husband I have my policies in place, but I also want my family to enjoy a few gifts that I can offer. The most important present, of course, is not one that can be opened (unless one opens a policy packet). 

So I ask you to do one thing for your family from now. If you do not have life insurance, use our life insurance quoting calculator in the upper right of this blog and get a ballpark estimate* on how much it would cost to ensure your family would be okay if something were to happen to you. There's even a button on there to find out how much you need. 

And if you do have insurance already, check to see if you have enough. Odds are you don't, and that is okay, as long as you do something about it. 

Check out the video and book a phone appointment with us to discuss how we can help you can give your family the best gift this year. 

*All rates are subject to underwriting.

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

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!

The Courageous Conversation About Life Insurance

Last week I had lunch with an old friend who also happens to be a client of  mine. He has been very successful working in the computer industry for about 20 years but is starting to get restless. Apparently his work has become, in his opinion, very boring. I asked him to tell me what he liked and didn't like about the work. "I do the work, I get paid, and then I have to put in a bid again to do the work again," he said. 

He began to "pull back the curtain" about his job and tell more details about who his clients were, how he acquired them and what he was paid for his time. Then he threw me for a loop and said, "So give me some of the secrets of your work."

Actually, there are not a lot of secrets. I try to keep everything as transparent as possible. My friend did not looked convinced. He said, "Do you use a bunch of high pressure sales techniques?" 

"All the time but apparently they are too subtle for people to pick up on," I said, laughing at the absurdity of it all. There was a time when life insurance agents had a reputation for being "high pressure". My first job in the business, selling accident plans door-to-door, was like that. We were trained to be like attack dogs, not to take "no" for an answer. If someone gave us an objection we had a binder full of memorized rebuttals throw back at them. 

As I have mentioned in an earlier post, I have replaced high pressure sales with "good pressure" sales. That means that I want to do what is right for a client, but sometimes, the client doesn't understand what is in their best interest. 

For example, let's say I am in the home of a young couple who has a couple of kids and a mortgage. One spouse may insist that they only need $100,000 of coverage but I think they definitely need more. That $100,000 won't cover the balance of the mortgage, much less cover other things, like funeral costs, replacing income and paying off cars and credit card debt. My job is to make those items part of the discussion. 

The reasons why the client is resistant to increase the amount can vary, but it usually comes down to cost. That's when I realize I have not done my job correctly because I haven't explained the value of my product in a way that this client can appreciate. 

"So if your spouse is stuck with less money than they need to keep the family in their home they love, has to take a second job, and has to go into debt to bury you, is that something you're okay with?" I ask, making sure the spouse is present. Is that "high pressure"? I don't think so. It's a reality check. In the business we call that a "courageous conversation" because most people don't know, or want to know, what really is going to happen when they die. 

As a professional insurance agent, I have to help them face the reality of the situation. There is no yelling or subliminal messages going on. My intentions are good in that I want this family to feel secure. I realize they may have a budget, and I can work with that. "Let's put it like this. If you purchase this coverage and died next week, your spouse will come to me and ask me, 'Will my family be okay?' What do you want me to tell them?" 

That's what my job is all about.

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!

Stay Healthy and You Can Save Money

This weekend I went to a grocery store that is a part of a large chain based in the southeast. They have a pharmacy that offers flu shots, which I get each year to ward off the winter's ailments. Even though many of my friends have said that it the vaccination doesn't work for them, for me it is a lifesaver. 

In the past I would get sick with a head cold at least three times each winter, with an additional case of the flu thrown in for good measure. However, since I began getting the flu shot about five years ago, I might have one good cold each year. This let's me work more, stay more active and overall feel better. As they say, an ounce of prevention...

One of the nice perks about getting my flu shot at this store is that they give me a gift card for $10 after my injection, which I promptly redeem for a lovely cheesecake. It has become a bit of a joke in our home when I walk in with the delicious dessert in my hand and a band-aid on my arm. "Ah, Chris got his flu shot again!" is the refrain as the family looks for forks and plates.

But the flu shot is a small part of a bigger picture. I'm not the healthiest person in the world, but I do the best I can by trying to eat right, exercise (mostly yard work, which works up a good sweat) and stay off of the carbonated sodas. All of this is done with intention from a lesson learned years ago. 

As an insurance agent, I also understand the value of the product I sell and know the price is better for people who are healthy. Realizing that I needed enough coverage to pay off my mortgage and some debt if I were to die unexpectedly, I applied for a life insurance policy. I also realized that I would need a paramed exam involving blood, urine and testing for height and weight. 

This was about the time that the low-carbohydrate diets were getting popular so I replaced my usual potato chips with pork rinds, thinking I had beaten the system. Boy was I wrong!

After the nurse did her job I found out that instead of my monthly premium going down, it went up by roughly $10 a month. Apparently my cholesterol was very high, and those stupid pork rinds were more than likely the culprit. 

I kept that policy for a year, then I reapplied with another company, this time eating a lot of salads. Why hadn't I thought of that the first time? I dropped some much needed pounds, got my insurance premium back to a reasonable price and I had a newfound respect for salads, which I still enjoy to this day.  

Odds are that you are not going to get much healthier than you are right now. Personally speaking, I have had my share of health problems in the last five years. Hypertension, stomach problems and borderline diabetes suddenly and unexpectedly became issues for me. I'm on medications to keep my numbers under control, but I could just as easily have had a heart attack, stroke or worse. 

What are you waiting for? Protecting your family's future should be a priority for you. Stay as healthy as you possibly can and get that coverage as soon as possible. 

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!