Non Medical Life Insurance

For many people, finding a no exam life insurance policy can be a great way to purchase a policy conveniently and quickly. But convenience is just one reason why people like life insurance with no medical exams. In today's world of Covid-19, as we try to do social distancing, many just don't want a nurse, no matter how sterile, to come into their homes. And I'm sure there are some nurses who are concerned about their safety as well.

I had a client from Florence, SC who was terrified of needles. It stressed her out to no end, but she needed some life insurance protection and reluctantly agreed to the paramed exam. The nurse told me later that the client nearly passed out and her blood pressure was very high, all as a result of her fear of needles. Again, convenience is not the only reason to purchase no exam life insurance.

These policies allow you to get term life coverage to financially protect your family in the event of your early death, without having to undergo a medical test. 

Whether you are looking at term life insurance or whole life insurance, it usually means passing medical underwriting — and that involves a medical exam in which a nurse meets you at your home or work. This exam can include the nurses getting your information, such as medications, but also having to measure your blood pressure, height and weight, and procure blood and urine samples.

Unfortunately, having to pass a medical test can be a roadblock for some people to getting this important coverage. Maybe they feel they can’t pass medical underwriting. Or, maybe, like the client I mentioned earlier, they just don’t like to be poked and prodded with needles. Either way, they put off buying the coverage they need to protect their family's financial needs.

Before we get started, let’s make sure you understand some basics about no exam life insurance. There are two types of these policies - simplified issue and guaranteed issue. 

When it comes to simplified issue no exam life insurance, you simply answer a series of questions about yourself and your general state of health to qualify. If your responses fall in the parameters of the insurance carriers underwriting limits, you are halfway there.  That’s different than the normal underwriting process where you have to undergo a medical exam. Be aware that the life insurance company can still request your medical records. Depending on the face amount, your age and whether or not you smoke, the carrier may forego asking for those records as well. However, there is a trade-off for these so-called “simplified issue policies.” They will usually be a little bit more expensive than their medically underwritten counterparts. 

For instance, I had a 30 year old woman, non-smoker and in overall good health, in Myrtle Beach, SC apply for $250,000 20-year term policy which required no medical exam. A comparable policy requiring the exam came in about $9/month cheaper. As you can see, the risk to the carrier was built into the premiums.

Guaranteed issue policies tend to come in the form of whole life policies and are usually taken by those who have health issues which would normally keep them from getting coverage. There is no medical exam, no health questions and the price can be higher. Typically these are bought for final expenses associated with funerals and some may have limited benefits for the first two years of the policy.

I advise my clients to be truthful in answering the survey questions. If the carrier finds that you may have "fudged" your information they can void your policy.

At Surf Financial Brokers we have several companies who offer non medical life insurance policies. Book an appointment to speak with us and go over your options. And in the meantime, stay healthy. 

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

4 Reasons To Buy Life Insurance?

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

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

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

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

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

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

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

6 Questions You Should Ask About Life Insurance Through Work

Quite often I will be discussing life insurance with someone and they will tell me that they don't need any because they have coverage through work. Given that everyone has a different situation, I ask some questions to find out how much they have and if it's enough to cover their needs.

The discussion usually turns to "Do I need to get life insurance through work?" or "Is it any good?" My general answer is that I don't know unless I take a look at it. DISCLOSURE: The information below is not specific to any industry or employer. There are too many plans out there to discuss each one in detail.

Here are some questions to ask your Human Resources person about your life insurance through work.

1. What's the face amount? It can vary,with the lower end being as small as $1000 to upwards of $20,000. Or the employer may just offer the equivalent of one year's salary.
2. Is it "basic" or "supplemental"? Most of the time, a "basic" policy is no charge or just very inexpensive. 
3. How much am I paying for it? If your policy is "supplemental", you may be paying more. One thing to be aware of is when the sales rep quotes you a price based on the frequency of your paycheck. $8 a week sounds good until you do the math and realize you are paying around $35 each month.  
4. Is my policy "guaranteed issue"? This means that there are no health questions. Most basic policies fall into this category.
5. Is my policy "simplified issue"? This means that your policy will ask a few health questions. These may be regarded as "knockout questions", which means if you answer "yes" to one, you will be disqualified from getting the coverage. 
6. Is it portable? What you are trying to find out is if you can take this with you if you leave your employer. And if you can, ask if the rate will go up.

Years ago I was selling "supplemental" life insurance on the coast of South Carolina. Our polices were simplified issue and I felt that they were a bit pricey. That higher price is reflected in the minimal amount of underwriting done, giving the company a higher risk. 

A young couple in Florence, SC asked me about life insurance on the husband. He was an exterminator for a local "bug company" and was being offered supplemental life insurance through his employer. The amount he wanted to purchase was going to cost him $75 each month, where I had a comparable plan for around $40. The difference in his head was that the premiums from my policy were going to be drafted from his bank account each month while the other was going to be deducted from his paycheck. He was willing to pay nearly double for the convenience of not having to worry about the money being in his account. His wife and I argued with him that he was wasting money. About a year later they split up, and she said it was because he was a "hard headed man". 

Most of the time I suggest that if you can get some "basic" coverage through work, go for it. It's cheap and your family can more than likely use it if you die. With that being said, I would treat it as a secondary policy and have a primary policy outside of work. As mentioned earlier, your policy through work may or may not be portable and if you're in poor health when you leave your job, you may not qualify for another plan.

If you have questions, feel free to leave a comment or drop by our website and book an appointment for a free consultation over the phone. And as always, stay healthy!

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

Do I Need Final Expense Life Insurance?

The life insurance industry has tried to get one message across for years. That message is that we are all going to die and when we do, we can ease the financial burden for our family and loved ones through the purchase of a policy. With this in mind, we have to acknowledge that everyone has a different situation. Some are married, some are single, some have more assets than others, and the list goes on. A single mother struggling to make ends meet will have a different set of needs than an heir to a large portfolio of stocks.

One of my pet peeves is when so-called "financial experts" go on television or write a book giving generic advice, like "buy term and invest the difference". Again, this advice may not be suitable for everyone. In a previous post I compared this to the doctor who prescribed the same medication for all ailments, despite knowing that it wouldn't work for everyone. 

Knowing this, there are times when someone needs to purchase what the industry calls "final expense" life insurance. The goal of these policies is to help pay for funeral expenses and the costs of services related to death, like being in the hospital beforehand. 

Most of the final expense policies sold are marketed to older people who are not in great health. Because of this, some are sold as "guaranteed issue", which means there are no health questions. The risk to the carrier is translated in higher rates and some limited benefits. 

An example of this is the graded benefit feature, which means that if the insured dies of natural causes (not an accident), the policy will only pay back the premiums, plus a small amount of interest. For some people, this is the best they can do as their health is questionable. 

A few years ago a friend of mine in the Charleston, SC area had cancer which was in remission, but then came back again. He took out a final expense plan just in case, and soon his situation worsened. Unfortunately, he passed away in the 20th month of the policy. His widow received a refund of the premiums plus some interest. With that being said, she was fully aware of the situation because the agent had explained it fully and clearly at the time of application.

I try to warn clients about commercials they see on television for final expense products. One in particular claims that a policy can be purchased for $9.95 a month. They do mention, in a quick and quite sneaky way, that the premium is "per unit". A unit is life insurance jargon for $1000. With this in mind, a $10,000 policy, which would cover most funeral costs, can have a premium of $99.50 a month. 

Keep in mind that if someone is healthy and hasn't waited too long to purchase a policy for their final expenses, they could qualify for a cheaper policy, like Guaranteed Universal Life (GUL) coverage. A GUL generally won't build cash value, but that isn't what people are buying it for. They just want to lock in on a good rate and not put a financial burden on their families. 

If you have questions or would like information about the different types of coverage you may be eligible for, let us know. You can even arrange a time for us to call you with our online calendar. In the meantime, stay healthy and subscribe to this blog for future posts. 

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!

How Do I Get A Life Insurance Quote?

Have you ever seen one of those commercials on television where the announcer says, "Bob got a half million dollars of life insurance for only $14 a month!"? Wow, that sounds fantastic.
Good for Bob. But hang on. You were so excited that you missed the fine print that flashed on the screen for two seconds. 

That fine print was letting you know that "Bob" was rated as "super special preferred" which means that he is 4% body fat, doesn't smoke, runs marathons weekly, is on no medications and only eats salads Of course, I'm kidding about Bob, but the truth is that very few of us qualify for those rates. A lot of Americans are healthy, workout and eat right. On the other hand, there are a whole lot of Americans who eat too much, drink too much, are overweight and think that bacon and/or ranch dressing goes on everything we eat. Again, I'm exaggerating just a bit. 

Those same television commercials instruct us to call or go to a website to find out how much a life insurance policy would cost for us. There you'll need to enter some information like your date of birth, the amount of life insurance you want, etc, and the quoting engine spits out a price. Most of these rates are merely estimates, as all of this is subject to an underwriter investigating your medical records and family history. 

Commercials like this are pretty common these days. They can get you a great rate on a life insurance policy and the quoting engine will include some top carriers. But here's the rub. If you buy a policy and die, will your beneficiaries know who to contact for their benefits? How will they know where to click to get the money they need to pay their bills and stay in their home. And most importantly, will they know if you purchased enough life insurance?

At Surf Financial Brokers, we also solicit on the internet, but with a difference - our personal touch. You actually get an agent who will help you with your choice. Yes, we have the same group of companies and rates, but we will ask you questions that are important. Are you getting enough insurance to pay off debt, like credit cards or car payments? Are you wanting to make sure your family can stay in their home? Would you like to make sure your kids can go to college if you die too soon? And most importantly, do you have a budget? 

Most of the time the rates you see on TV should be treated as ballpark estimates. There is nothing wrong with that as long as you are aware of that ahead of time. I've had more than a few instances when someone was given a rate that increased later. The underwriter discovered that the "Bob" wasn't 4% body fat, but in fact was morbidly obese and smoked two packs of cigarettes a day. Not to mention that he failed to disclose the medications he was prescribed but failed to take.

We offer a very easy-to-use quoting tool in the top right of this blog. It's only with one of our carriers but the prices are in the general ballpark to give you an idea. While you're there you can also get a rate for disability insurance to insure your income. 

More conveniently we offer our calendar to you. You can find out when we are available and set your own appointment to have someone give you a call and spend a few minutes to discuss how much coverage you actually need and how to fit it into your budget. Book a consultation with us to work around your schedule. And in the meantime, stay healthy.

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

Do I Need Life Insurance? 4 Reasons You Do

When speaking to prospective clients I hear the same set of objections. Most fall into the group of "I can't afford it" or "the price is too high". As an insurance agent who got into the business in 1985 I've heard this more than I should. And the most aggravating part about it is after they tell me they "can't afford it" I see pictures on social media of the family at Disneyworld or a vacation in the islands. 

Of course they can afford it, but they just don't see the value of life insurance. That is where I have not done my job right. I have to do better at convincing the prospect that if the bread earner dies suddenly, there are no more family vacations. 

Another objection I get, especially from younger people, is "I don't need life insurance". These people are falsely under the impression that they won't die, or at least not very soon. Odds are they won't, but accidents happen all the time. 

And these same people, mostly single and unattached, feel that they don't need life insurance because they don't have families of their own. When I ask, "Are you planning on getting married and/or having kids some day?" the answer is yes. If you can start a plan while you are younger and it costs less than waiting five years, why not go for it? 

Life insurance premiums are based on a variety of factors, including your age, your health status, if you use tobacco or not, etc. Men have higher rates than women because statistically, they die sooner. (Speaking on behalf of men, we tend to not go to the doctor as much and we are more prone to do dumb stuff like stand a ladder on the back of another ladder, etc.) But putting off the purchase of life insurance will end up costing more in the long run.

Forgoing life insurance purchases at a young age can be costly. As an example, the average cost of a 20-year level term policy with a $250,000 face amount is about $214 per year for a healthy 30-year-old male. In contrast, the annual premium for a 40-year-old male is about $486. The overall cost of delaying the purchase for 10 years is $2,720 over the life of the policy, according to Policygenius "Life Insurance Statistics in 2020"

But the real question is do you need life insurance? More than likely the answer is "of course you do". Whether or not you have a family of your own, there are still reasons why you should look into some coverage that fits into your budget. Here are a few:

1. Funerals aren't cheap. You can save money by pre-planning, but that includes pre-paying. The average funeral costs is between $7000 and $9000. My father, whom I have mentioned in previous posts, pre-planned but didn't put any money down. Between the time he picked out his casket and other accouterments and the time he passed away, the prices of the item went up a bit, forcing my sister and I to pony up around $13,000. 
2. There are costs associated with dying. When I mention this to a client they look at me like I am speaking a foreign language. For the majority of us who will die, we may be sick or in the hospital for a few days prior. And you can linger in the a medical facility after an accident. Yes, there are exceptions, but death is not always quick or cheap.
3. You may have debt. Being young doesn't mean you don't (or won't) have debt. Student loans, credit cards, and car payments may not be forgiven if you die. And older people have plenty of debts, like mortgages. Paying off the house means your family can still live there, instead of having to move to another home or town or school district.
4. Replacing your income. I like to share the story of the couple who had no kids but loved to go on cruises and buy cars. When I spoke to the husband about life insurance and the loss of income if he was to die too soon, he said his wife could "cut back on that stuff". But when I mentioned everyday expenses like car repairs or having to get a new refrigerator suddenly he said, "She can find a new husband. She's hot." (Sidenote: She didn't like this plan and insisted he purchase a policy)

Given that we are in the midst of a pandemic, I highly suggest giving us a call and finding out what we can do that fits into your budget. If you want, you can schedule your own appointment. And as always, stay healthy!

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

Insurance News and Updates

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

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

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

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

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

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

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

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

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

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

Professionalism In Life Insurance

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

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

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

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

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

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

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

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

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

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

The "Why" of Insurance Sales

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

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

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

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

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

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

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

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

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

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

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

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

My Plan Before Covid Struck

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

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

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

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

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

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

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

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

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

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

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

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

5 Ways to Use Life Insurance Without Dying

There's a school of thought out there that says you should "buy term and invest the difference".  The people who tell you this are not enthused when it comes to permanent (universal or whole life) insurance. Some think it can be too expensive and others think that the growth inside the policy is too conservative. To be fair, term life is much less expensive and the cash values accumulations in permanent policies, especially whole life, are easily outperformed by some investments.

As I have stated in previous posts, all life insurance products have a need, but not all people need all kinds of insurance. And the biggest problem with the "buy term and invest the difference" scenario is that the vast majority of people don't do the investing part. And the ones who do are subject to market risks. Losses can happen. 

One of the worst objections I've heard when talking life insurance to a prospect is "it's not going to help me when I'm dead". Of course not. Life insurance is primarily for your loved ones who may need those funds to stay in the home, pay off medical bills associated with your death, pay off credit card debt or help fund educational needs. 

With this in mind, there are policies out there that can help you before you die. Here are a few ways:

1. Retirement supplement. Unlike a tax-qualified retirement plan, you don't have to wait for until you're 59 1/2 to get your money without a tax penalty. And by taking out cash as a "loan" and using the policy as collateral, you can likely get the money tax-free. 
2. Living benefits. Many of the permanent life policies out there now have some form of living benefits that can be used for chronic illnesses or long term care situations. Depending on the carrier, these benefits may be included or offered as a riders (some at an additional expense). 
3. Critical illness riders. Again, these are sometimes offered as part of the policy and will let you use some of the funds if a major health event, like a stroke or heart attack, occurs.
4. Education costs. I've had clients "overfund" a policy and use the accumulated cash value to fund their children's college expenses. Did you know that when applying for student loans and financial aid, one must disclose any 529 plan or Coverdell plan? But you don't have to disclose life insurance. 
5. Warehousing money. Funds can be taken out of the policy as a loan, repaid, and used again. For example, I had a client who loved to buy investment properties. If he saw piece of land he wanted, he didn't go to the bank for a loan because he'd have to fill out a lot of paperwork and wait for a loan officer to decide if he qualified. Instead, he'd call the insurance carrier, get the money he needed for the down payment (a check would be sent overnight in some instances) and he would repay the loan within a few months. When he found another piece of property, he'd do it all over again. Smart!

One interesting note is that we now offer a term life policy which includes the living benefits (#2) as well. If you'd like to learn more or have questions about this, please set up an appointment with us in the right lower corner of the screen to discuss over the phone. And as always, stay healthy!

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

A Promise Kept

Did you know that only about 40% of Americans have the amount of life insurance they need? As an insurance agent, I find that people don't want to discuss life insurance because they want to "live in the moment" or because it's not something they can use. In other words, they don't want to plan ahead or worry about what might happen to their family when they die.

With that in mind, I wanted to share a video that gets the point across of why we should all consider life insurance. Take a minute to watch.

As you can see, life insurance isn't for you, as the insured, but for your loved ones. If you need help finding the right amount of coverage within your budget give us a call. And as always, please stay healthy.

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

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

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

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

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

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

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

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

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

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

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

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

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

And as always, stay healthy and safe!

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

Memorial Day and Insurance (short post)

On Memorial Day we remember those who made the ultimate sacrifice to secure our liberties. These men and women left their families and loved ones for foreign lands to put themselves in danger. We call them heroes in honor of what they gave up for the rest of us.

With that thought in mind, we too can be heroes to our families and loved one by making a very small sacrifice. The purchase of an insurance policy can also give us security to know that the people we care about can continue to live in their homes and educate their children. For a few dollars, we can take the steps to show that, just like those we memorialize from wars, we too can make a lasting difference. 

Everyday I talk to people who tell me that a parent "took care of things" by having enough coverage, whether life, disability or  long term care, and that forward thinking saved their family. 

As we remember the fallen military personnel who sacrificed for all of us, remember that you can also make a very small sacrifice for your loved ones. 

Stay healthy and have a safe Memorial Day. 

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

Get You Some Insurance and Relax

The Greek word for "insurance" is "asfalisi", which literally means "security".  Not like a security guard, but more like a security blanket. In other words, insurance makes us feel secure knowing that if something bad should happen to us, like an accident or health crisis, our bills will be taken care of and so will our loved ones.

People love to "get away from it all", with trips, vacations, hobbies or music. We all need something to take our minds off of the everyday issues we deal with, from work to family, traffic to bad neighbors. There's a lot of stress out there and some in the medical community point to this stress as the root of a gamut of medical problems. And the cause can be those nagging little voices in the back of our heads letting us know if we get sick or hurt, we still have bills to pay.

Are you the breadwinner of the family? What would happen to your loved ones if you were to die too soon? Could your spouse and children stay in their home? What about debt? Who is going to pay those bills? Can the kids go to college? And what about those day-to-day expenditures, like when the refrigerator breaks down or you need a car in a pinch?

Sure, you could do something like a GoFundMe page, but why not avoid all of that by purchasing a life or disability insurance policy from now?  And with a pandemic all around us now is a great time to call us at Surf Financial Brokers and have a conversation.

We hear people always say that life is too short to suffer through all the aggravations and stress. Let us help you get a little more peace of mind with coverage that is affordable. And stay healthy!

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

Life Insurance or Flat Screen TV?

Part of my job is helping people get their priorities straight.  For instance, I met with a client this past December who was married and had two small kids.  He had no life insurance.  He agreed that it was important but added, "I can't afford it right now, the kids want a flatscreen TV."

My response was "If another car crosses the center line and kills you, that flatscreen television won't be able to put your kids through college, help your wife pay off the mortgage, replace your income, erase your credit card debt or pay for your funeral."

The client said, "I just can't do it right now."

I could have continued to extol the virtues of purchasing a life insurance policy, not for himself, but for his family.  It wouldn't have made a difference.  His priorities were out of whack.  It was Christmas and he wanted to make the family happy for the short term.

I came to two conclusions after this meeting.  1. For some reason, this generation fails to think in the long term.  We don't plan for others that will come behind us, only for what gives us gratification now.  And 2, people can "afford" what they want to buy.

I'm not saying that this young man was a bad person. He obviously loved his family by wanting to make them happy at Christmas. My job is to try to convince this person that an extra $40-50 each month was going to keep his family, that he loved so much, in their home if he was to die unexpectedly. In a case like this, he wasn't going to budge and really didn't want to pressure him.

He really wanted to buy that TV. But why didn't he want to buy life insurance? Maybe he thought he wasn't going to die anytime soon. Or maybe because it's an intangible product, whereas a TV has lots of buttons and can offer some instant entertainment gratification. A life insurance policy will only satisfy others.

When we buy life, disability or long term care insurance, we get the satisfaction of knowing that if something should happen to us, the others around us aren't burdened with bills or taking care of us. In other words, can you sleep comfortably knowing that your family will be okay if something bad happens to you?

As an insurance agent, I have to help my clients find the right path to financial security. Sometimes the client doesn't want to be helped. I hope this gentleman's wife and kids can help him learn what his priorities are before it's too late.

Stay healthy and let us know if we can help you with your insurance needs.

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

The Differing Types of Life Insurance Pt 4 (The Universal Life Talk)

We covered, in broad strokes, term and whole life policies in my previous posts and we're getting to the end of this series. (Yes, life insurance is one of the most of exciting topics and I'm sure you're going to be sad when this is over.)

Finally we have one of the most confusing products of all time, Universal Life (UL). Less expensive than whole life but with the ability to build cash, UL is a good fit for some clients. The "engine" that built cash values on traditional UL's for years was interest rates. Back in the 1970's and 1980's when interest rates were high, many agents who should have known better, sold UL's as investment vehicles. Years later, when interest rates dropped dramatically, the cash values inside those policies were being overtaken by the "cost of insurance", which rises as years go by. Basically, the policy will eat away at itself if the interest rate isn't high enough.

And to make up for the shortages, the premiums on your policy may increase. I met a gentleman who had taken out a policy in the early 1980's and since then his premiums had increased to nearly $300/month. On top of this his health had taken a turn for the worse over the years, with diabetes and heart issues now in the picture. He would have a very difficult time finding a new policy and was forced to keep the one he had.

I worked in an insurance office in the early 2000's and the owner threatened to fire anyone selling a UL. She was on the receiving end of angry clients who wanted to take a few hundred dollars out of their policies and it wasn't there. These policies had been in effect for years and there was nothing to show for it.

The insurance companies woke up to the dismal sales (no agent wants his head bitten off so they didn't talk to the clients about them) and devised a way to resurrect the UL. They took the "index" from an indexed annuity and used it to replace the interest rate. The Indexed Universal Life (IUL) was born!

In the life insurance community there has been debate for years on whether or not the IUL's are as good as they seem. The ones who don't like them are typically agents who have been selling whole life policies and see these policies as a threat to their income (see part 1 in this series). I worked for a very large life insurance carrier who forbade us from selling anything indexed and threatened us with termination.

The key to making an IUL work well is how it's structured. Assuring that it's funded properly will make all the difference in the world and can help down the road as a retirement supplement. And many top carriers of IUL's include riders like living benefits and critical illness at no charge. This means you can use your policy while you're alive, if need be.

A few years ago Patrick Kelly wrote a book titled "The Retirement Miracle" in which he explains how an IUL is a great savings tool for our later years. The video quality isn't that great but here goes..



Finally, as I mentioned in the previous post, the better alternative to a final expense policy (which is usually a whole life plan) is a Guaranteed Universal Life (GUL) policy. A GUL is like a traditional UL except it builds minimal cash value. However, it's guaranteed to stay the same price, like a whole life, until your passing. The obvious question is why would you want cash value in a final expense plan? You wouldn't. The premiums are much lower but be aware that the GUL is typically underwritten like any other life insurance policy, so if you're healthy, you would be doing better when it comes to price.

Hopefully, you'll have a better understanding of what each kind of policy can do and make a wise choice when purchasing protection, not for yourself, but for your loved ones. I realize that this is a lot of information so if you have any questions leave them in the comments section below. And stay healthy!

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

The Differing Types of Life Insurance Part 1

For years agents have debated the merits of different types of life insurance. Some prefer to sell term while others push for permanent types of insurance, such as whole life or universal life. And for the consumer, the differences can be confusing. At least once a month I'll have a client ask me to explain what sets one apart from the others.

Why would an agent push one type over another? Perhaps they were trained to believe that whole life, for instance, is the panacea that cures all financial ills. Or maybe they've bought in on the "buy term and invest the difference" mantra.

The other obvious reason is that they work for a company that wants to promote one type over others, and may not even offer the other types. I knew a husband and wife who ran an office for a carrier that didn't offer whole life, so they trashed the product. "We wouldn't do that (sell whole life) to our clients!" they would proclaim, as if it was unethical.

The truth is this:  All insurance products have a need somewhere, but not all insurance products work for everyone. For example, a universal life policy might be a great fit for one person, but not necessarily for everyone else.

 An agent worth his or her salt will have the product that fits for you, and won't try to make something else work when they don't have what you need. I use the analogy of the shoe store that only carries even numbered sizes. If you wear a size 5 shoe, will they send you to another shoe store? No, they try to make a size 4 or 6 "fit".

When you hear a life insurance agent say "I'd never sell that product" it's probably because they aren't educated enough on the product to understand when it is suitable or their company doesn't carry it. On the other hand, if all if they sell is one type of insurance, run as fast as you can. Imagine a doctor who only prescribes penicillin, and for everything from headaches to broken bones. That doctor would be run out of town on a rail for malpractice.

In my next posts, I'll discuss go over the various types of life insurances. Hopefully this will help you decide which products is best for you and your family's needs.

 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 Life Insurance Check Up 2023

Hopefully, you go to your physician once a year for an annual checkup. The logic behind this is to make sure you are in good shape and if there is a problem it can be dealt with before it gets out of hand. The same is true of your "financial wellness". 

In that vein of thought we at Surf Financial Brokers ask, "Have you had an annual life insurance check up?"  It only takes a few minutes and could save your loved one a lot of pain down the road.

First, make sure you have enough life coverage.  Many people think they can get away with a small policy through work, but it's probably not enough to keep your family in their home and retain their lifestyle if something were to happen to you. And if you in a two-income family like many other Americans, your income definitely helps pay the bills. A quick and easy way to determine the amount of life insurance you need is with our calculator.  It only takes a few minutes to plug in some numbers and get a pretty accurate amount of coverage.  Make sure you have enough coverage to pay off debt, cover education costs for your kids, replace income and costs associated with death, such as an extended hospital stay.  Don't forget to include final expenses, like burial or cremation fees, funeral expenses etc.

Second, make sure your beneficiaries are who you want.  When you took out your policy years ago, you picked out who you thought were the right people to be your beneficiaries. We recommend that you take another look at whom you have chosen and make any adjustments that may be needed. An irresponsible adult child or a deceased loved one may not be as suitable as you thought originally.  Have your agent get you the correct forms for beneficiary changes. Keeping your beneficiaries up to date will save your loved ones a lot of time and expense. 

This was the case when my father passed away this year. He had three life policies that had not been looked at in years, even though I asked. One policy had his father and mother listed as the beneficiaries.They had died in 1970 and 1992 respectively. Another had my mother listed as the primary beneficiary, but she had died in 2011. The third policy was the really confusing one, as he had listed his business as the beneficiary. Again, the business had been shut down years earlier. 

Which leads us to the last part of the check up.  Let your family know who to contact if they need help at your death.  Unfortunately, life insurance agents come and go.  The trusted agent you purchased your plan from may or may not still be in the business, or they may have gone to work for another carrier.  If your original agent is no longer available to help you, contact the company and request a new agent of record to assist you.  Leave this information available for your loved ones so they don't have to waste time and money trying to file your claim. And be sure to keep documents like life insurance policies where your family can find it, like a safe or lockbox. My sister has a file that her adult children are aware of that has all of her insurance information in one place. 

If you need help or have 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!

Are You Playing Checkers or Chess?

Many people don't have a complete financial gameplan in place.  They buy life insurance, have a 401k through their employer and only insure their paychecks through a work sponsored program.  In other words, they are only thinking of one move at a time. This can be a fatal mistake when it comes to planning for you and your family.

On the other hand, forward thinking folks look at the big picture. They aren't just thinking of their needs for the present, but down the road. They know that their needs will change with time because their situations will change. Kids will be born and need to be raised.  Illness or unemployment can affect a families finances.  When making a financial plan, there can be a lot of landmines.  Just like a good chess player, these people are thinking several moves ahead.

In any game, whether it's chess or football or Monopoly, you have to play offense and defense. Think of offense and making money and defense as protecting what you have worked for. Insurance is playing defense in that sense and can be important in the case of an illness or accident. 

Take life insurance for instance. There are many types of coverage and depending on what your own situation is, you may need to buy several policies over your lifetime. Term is great during your working years, when you are still paying off a mortgage and want to make sure your kids have funds to go to college if they want to. And term life coverage is very affordable. 

As you get older and the house is paid off, you may want to look at coverage that is permanent, like a whole or universal life policy. You probably won't be looking for cash accumulation in that scenario, but instead something to relieve the burden of burial costs from your family. 

Of course, your income (or the incomes nowadays) is how you provide for you family and pay the bills. If you were to unexpectedly get sick or hurt and became unable to work, your family's financial situation could become a nightmare. And unlike the possibility of your death, you may still need care, which could involve paying someone or having a family member take time from their job. Either way, a disability policy could provide insurance for your paycheck. 

Finally there are the costs of aging. We all want to think of retirement as a time to kick back, travel and spoil the grandkids,but we rarely think ahead of a time when our health is failing and we can no longer be independent. The only time we consider it is when we see our parents or grandparents in that predicament. In the case of my father, who refused to go to a nursing home but could no longer care for himself, we had to bring in a private caregiver company. He pension and other small income streams were eaten up quickly each month. Desperate, he began dipping into his home's equity. 

Life happens and bad things can occur at any point of our lives. Planning ahead and making sure you have your bases covered is a sign of "financial wellness". Shifting risk from your own wallet to that of an insurance company (life, disability or long term care) is a smart move.

So the question to ask yourself is, "Am I playing checkers or chess when it comes to my finances?"

At Surf Financial Brokers, we know which plan is more successful.  Let us help you become a chess player.

If you have any questions or comments, please let us know and stay healthy!

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