What Coverage For the Coronavirus?

A few days ago I met with some other insurance agents for a nice lunch in Charlotte, NC. Quickly the conversation turned to current events and, of course, the Coronavirus came up. Then one colleague from the Richmond, VA area, asked the group what policy would best cover the Covid-19 bug. This is when our conversations get pretty interesting.

Insurance agents can be a weird lot sometimes. In a nutshell, we sell policies to cover loss of life, income, or other tragedies. When you deal with such morbid topics all day it affects your sense of humor. Not everyone is appreciative of dark humor as many agents are. Heck, there are a quite a few agents who would rather discuss something a bit lighter. 

This was not the "light conversation" group. Quickly and without hesitation someone blurted out, "A Hospital Indemnity plan!" with great enthusiasm. Maybe a bit too much enthusiasm. The rest of the table nodded in agreement to this idea. I like to think of us as "insurance geniuses" and that birds of a feather flock together. 

At this point you're probably asking yourself what a Hospital Indemnity (HI) plan is and what does it do. In a nutshell the typical HI* helps cover expenses associated with:

• short hospital stays
• ambulance trips
• outpatient surgery
• critical accidents
• emergency room visits

For the most part HI plans are sold through companies through work via payroll deduction, however there are a few companies that offer these plans on an individual basis. Our clients like them because they are easy to understand and very affordable. 

Hopefully, your major medical insurance will cover most of the hospital and/or doctors bills if you're stricken by the Coronavirus. And if you think you may need an extra layer of protection to cover the out of pocket expenses that can go with any illness, perhaps a Hospital Indemnity policy is for you. Luckily, we at Surf Financial Brokers may be able to help.

The Covid-19 pandemic is a serious matter and is affecting people differently. I have personally spoken to people who have tested positive but with no symptoms and those that have said it was just a case of the "sniffles". I've also spoken to people who said they were seriously sick and in the hospital and people who have had family members pass away. As a matter of fact, my neighbor's parents both died from the illness within eight days of each other. With an illness like this that we are still learning about, the concern for a supplemental plan to offset medical bills is increasing everyday. 

To see a short and informative video on how this plan works click here. 

Buying any kind of insurance can be a bit stressful, and we all have too much stress in our lives right now. So let us help you. You can pick the time you want us to call you and we will have a short discussion on the merits of how HI works and do our best to make it work on your budget. We can even take your application right over the phone. With the Coronavirus around no one wants an agent to call on them. 

*Please note that not all plans cover all of the above, but you get the idea. Also, not all plans are available in all states.

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 3 Stages of Retirement

When we think of retirement planning, we usually think of traveling, visiting the grandchildren or working in our garden.  Looking forward to age 65 is a milestone for a large number of us, but the reality can be quite different.

Did you know that only about 15% of Americans fully retire at 65? Most will just continue working or cut back on the hours they work. And self-employed people, such as business owners or 1099 employees just keep working as well because they know the boredom will set in and want to stay active.

When I talk to groups about retirement years, I go over the three stages of retirement:

• The Go Go Years - This is when we think of retirement as traveling and having a good time.Visiting the grandchildren, going on cruises and days full of pickleball sound great, and if you have some money saved up you can move to a great retirement community. 
  
• The Slow Go Years - As the name implies, maybe we need to take it a bit easier. "Piddling" in the garden and staying closer to home. Sometimes a health related issue or an accident begin this part of the process.
  
• The No Go Years - Serious health problems and aging keeps us in home or a facility. This can also be the time when you can go through most of your savings due to healthcare costs, even if you are not in a facility. As a matter of fact, home healthcare services can cost up to twice as much as a nursing or assisted living facility.
  

Unfortunately, when planning for those retirement years, we fail to plan for the No Go years. Some have their heads in the sand, not thinking it will happen to them. According to the Motley Fool, 69% of people will need long term care insurance. And you're likely to need it from 1 to 3 years. Given that care in a facility isn't cheap, and in-home care is even more expensive, why not shift the burden of the costs to an insurance carrier instead of wiping out everything you've worked your whole life for?

There's a myth that the government will take care of you. Signals from politicians show differently and we don't recommend you rely on it.

Fortunately, there are options and depending on your age and health, you can find something in your budget. The long term care insurance landscape has changed over the last few years. Many insurance are acting as if they no longer want to be in that part of the business by selling off those books of clients to other carriers, while others have changed their policies by decreasing the rich benefits they previously offered for years.

However, there are still a handful of carriers still offering long term care policies. And now we even offer a short term home healthcare policy which is a great way to stay in your own home affordably. In addition to these options, many life insurance policies now offer "living benefits" in their coverage which can help with the dilemma of being chronically ill.

If you would like more information about planning for your future healthcare costs, contact us or use our "Books a Free Consultation" tool. We'll be happy to have a phone conversation with you. 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!

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. 

My Own Life Insurance Story Part 2

As I mentioned in my previous post, my father's passing was left us in a lurch. It wasn't sudden or unexpected, as he had been suffering from the effect of Parkinson's Disease for years. And even though I have been a life and health agent for years, he ignored any of my pleas to let me take a look at what he had in place. And with him living in Fayetteville, NC while I lived two hours away and my sister living seven hours away, it was more than difficult to keep an eye on his affairs.

His beneficiaries were horribly out of date. Yet he managed to keep these policies up to date, either paid up or still making premium payments. Always trying to impress us with his financial intelligence, he screwed up when it came to something simple like life insurance. 

And worse, he put his family, my sister and I, in a situation that needed to be cleaned up. I can foresee myself spending hours on the phone with these carriers trying to sort out death claims that will eventually be paid to his estate. At this point we would be satisfied to cover his funeral costs, which were in excess of $13,000. (Did I mention he had an equity line on the house that he was using to pay his monthly bills? Another surprise!)

A horrible thought crossed my mind. What if he had died 40 years earlier? His insufficiently low face amounts would have probably forced us to move from our home. College would have been a "maybe" for me. My mother, who was a great home maker but had few marketable skills, probably would have been forced to enter the job market. 

These are the reasons why agents like myself ask a lot of questions when we sit down with a family to discuss life insurance coverage. And a good agent will get an answer and continue to drill down for more answers. It may seem annoying and a bit invasive at the time, but the process of discovery is necessary to make sure that families can stay financially solvent if the breadwinner dies unexpectedly.

Life insurance agents sometimes get a bad reputation. I get it. However, the vast majority of us are genuinely concerned for our clients. We know that people have budgets, yet they also have families who will be in trouble in someone dies too soon. The question to ask yourself if this: If I were to die tomorrow, will my family be okay?

Even though my sister and I are adults and have our own families, we never expected to be on the hook for my father's final expenses. Nor did we think we would be having to sort out a tangled web of life policies. The main problem was lack of communication. My father dismissed our entreaties to go over his finances. We weren't vultures waiting for him to pass to inherit his vast empire. But we did want to be aware of potential landmines that could have been eliminated. Now we are dealing with those landmines.

The moral of the story is as follows. Let your life insurance agent help you. Take into account final expenses and the "cost of dying", as well as any outstanding debts. And even though we hear horrible stories in the news concerning elder abuse and financial fraud, most adult children are caring and should be trusted. 

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!

My Own Life Insurance Story Part 1

My father died this past Sunday after a long battle with Parkinson's Disease. He was the kind of person who would never answer questions when it came to his personal finances, especially when his son was an insurance agent. When I would mention life insurance he would grunt something like "There's plenty for you, don't worry about it." Unfortunately, there wasn't plenty for anyone.

After spending hours going through his personal effects, my sister and I found a few inklings of policies here and there. The face amounts looked extremely low, like $1000 kind of low. Some of the policies were paid up in the 1970's (not a good sign) and in it all, there was no rhyme or reason to any of it. But that's the way he did things.

I cobbled together any and all evidence of policies that could be in effect and took them to the funeral home where my father had "pre-planned" his wishes. And that's all they were. Wishes. No contracts had be signed, not a deposit or anything else. He had chosen his casket (a very expensive one) and a few other items, and had been given a price. The funeral director did his best to honor those prices, but inflation had taken it's toll. He told us he would give the insurance information to a lady in his office who would do some investigating. The moral of this was that pre-planning was not the same as pre-paying.

When my mother-in-law, who resided outside of Charleston, SC, passed away several years ago, she had a policy for $75k. We signed a few forms to assign the policy to the funeral home. The funeral home got their share and the remainder of the policy went to the beneficiaries. It was a seamless process and worked marvelously. If only everyone would think this through.

The irony was that after my mother-in-law passed away, I had related the story to my father, letting him know how easy the process was for my wife and her siblings. The talk must have fallen on deaf ears because he failed to take any action that could have improved the situation that was yet to come.

So here we were. My sister and I, along with our spouses, were confused about my father's burial plans.The lady at the funeral home was thorough and did lots of research by reaching out to the insurance companies and explaining our dilemma. We found out that two of the polices, one of which was paid up and the other in good standing, both hadn't had a beneficiary update in years. My mother as well as my paternal grandmother, were both listed as beneficiaries and were both long dead. Again, if he had just let me take a look at things I would have spotted the problems, not that I'm super smart. As an agent who has been in the business for many years I know what to look for.

Yet another policy, which was in force and up to date, had by father's business as a beneficiary. The business had been shut down three years earlier. This whole affair was beginning to look more like a bad train wreck than a way to cover the expenses for burial and other related costs. 

In Part 2, I'll give you more of this story.

 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 Doctor Who Won't Listen

Have you ever seen those so-called "financial experts" on television. They have books and infomercials all about changing your financial situation by following their plan. Heck, one isn't a financial expert at all, but a travel agent. But the best part is that no matter what your situation is, their generic advice is going to set you on a path of financial success!

The truth is that people are not in the same situation. A wealthy couple with a large estate to leave their heirs has a different set of problems than the single mother struggling to pay her bills. And just telling them both to "buy term life insurance and invest the difference" makes no sense.

Imagine for a minute if you went to the doctor and all he talked about was a new wonder drug that was awesome and could treat a serious condition.  The only problem is that you don't have that condition.  At first you are polite because the doctor is very enthused about this new drug, but soon you become irritated because you need help with something else. The doctor won't have any of it and insists that you follow his orders. 

If this happened in real life that doctor would be run out of town on a rail and deservedly so. If an insurance agent were to sell their clients the same policy, despite whether they were young or old, employed or laid off, healthy or sick, they would be guilty of  "financial malpractice".

We in the insurance industry can become guilty of the same thing as this doctor.  We find a product, for instance a disability policy, and start investing our time (as well as the client's) into that product, instead of listening to the client and finding out what they really need.  In the end, the client isn't happy and the agent doesn't make the sale.

There's a better way, but the client has to meet the agent halfway. Many people don't want to discuss their personal situations with someone they barely know. And there are those who only want to talk to strangers. They feel as if they'll get a more objective opinion. Either option is good, but let your prospective insurance agent know what's going on. Issues like business succession, special needs children and budgets can help your agent get a better feel of the situation and help you remove potential landmines in your financial gameplan.

In our agency we take the approach that we have to ask questions. Sometimes it's like pulling teeth, but in the end, we do what is right by the client. And one way is by having a full suite of products that can help. Some people may not need long term care, but they may have a need for a Short Term Home Health Care plan. Or a cancer plan. Or disability insurance. 

We have helped clients from Charlotte to Charleston to Richmond and even in the state of Maine. They know that we are not going to prescribe a generic solution for all of their pain points, but will take the time to learn what their needs are and how to address them. And all of this is done without pressure. 

One way we make it easy is by making our calendar accessible. Set your own appointment and we'll give you a call to get you started. This is another reason we have been called the "coastal Carolina insurance experts". 

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.

Special Needs Trust

It seems like the topic of special needs planning drops into my lap every 3-4 months.  Occasionally when discussing life insurance needs with a family, I'll learn that there is a special needs child in the picture. Each time the topic comes up, I learn a little more about how folks are using a mixture of community organizations, local government agencies and private funds.  Like a snowflake, all situations are different, but in many cases they can be handled nearly the same.

Let's look at an example.  A middle-aged couple has 3 kids, one of which is autistic.  While it is assumed that one of the other two kids will take responsibility for their sibling down the road, nothing is written in stone. And a myriad of things can go wrong. The siblings may not want, or be able to care for their special needs brother or sister.  Mom and Dad can care for the child up to a point but someone is going to have to care for them as they get older.  And what happens when Mom and Dad pass away?

Most importantly, special needs kids grow to become special needs adults.

A Special Needs Trust is typically the answer.  First and foremost, I highly recommend you find an attorney who has a couple of these irrevocable trusts already approved by a judge.  As an attorney friend of mine said when discussing this topic with me, "Do not let an lawyer 'practice' on your client!" Especially since the trust is "irrevocable", meaning it will nearly impossible to make changes later. 

A Special Needs Trust works like this:  The trust is established but without any money inside. The money comes from a second-to-die life insurance* policy on the parents.  The logic behind this is that if one parent dies, the surviving parent can still care for the child.  At the death of the second parent, the life insurance policy is paid to the trust which then can help support the special needs child/adult.
The key to all of this is planning.  As I stated earlier, all cases are different, however taking the time to prepare can really lessen the stress and financial burden down the road.

A second-to-die policy is usually less expensive than a traditional life insurance policy because the insurance company does not have to pay out the benefits until two people die, instead of one. Yes, both will have to go through the underwriting process, so if one of the parents is in poor health it can easily throw off the affordability factor. In my experience, most of these parents are younger and it is a non-issue.

I have learned that there is a community of special needs parents. These great people network and willingly share the resources and information they have acquired with each other. However, whenever I talk to them not all are aware of the special needs trust or may have heard bits and pieces of information. In my community of North Myrtle Beach, SC, I have tried to find local attorneys who have had special needs trusts approved by the courts (again, no practicing!) and keep them available for referral. In turn, the attorney recognizes my role in the process as well. 

If you have questions or additional information to share, please do so in the comments section, or drop us a note on our website. And feel free to book a free consultation with us to speak over the phone. As always, please stay healthy.

*We suggest a second-to-die guaranteed universal life policy.  For more information, contact us through our website at Surf Financial Brokers.  

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.