My Personal Long Term Care Story Part 1

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

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

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

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

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

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

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

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

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

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

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

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

Do I Need An Out-Of-Pocket Protection Plan?

As we are in the middle of open enrollment for ACA (Obamacare) plans, we are seeing that many individuals are selecting higher deductibles, fewer copays and more out-of-pocket costs to make their health insurance premium more affordable. These out-of-pocket costs may still cause unnecessary burdens to many people. 

As a matter of fact, the number one reason for bankruptcies in the country is medical expenses, with the percentage being estimated at over 60%. In 2015 the Kaiser Family Foundation found that medical bills caused 1 million adults to declare bankruptcy. The same survey also found that 26% of Americans between the ages of 18 and 64 struggled to pay their medical bills. 

When a family member has a medical condition and has to go to the hospital, they don't need added financial burdens. Our new Out-Of-Pocket (OOP) Protection Plan* is designed to help pay some of the costs that most families will experience from higher deductible plans with fewer benefits. 

Having a policy that covers out-of-pocket expenses for hospital stays could not come at a better time. The news is filled with statistics of Covid cases on the rise, and hospitals filling their rooms. Because of this, we have had an increase in interest for plans like this. 

  This plan pays directly to the policyholder. There are no networks nor deductibles. Even filing a claim is simple. And the benefits are paid directly to you in one lump sum, not the hospital or the doctor. Plus the plan pays in addition to any other insurance and workers compensation.

The best part is that you can choose the benefit and premium. For example, you can decide what amount of benefit you would like for your daily inpatient hospital confinement benefit. Next, you decide on how much you would like for your first hospital admission benefit. Included in this is a $50 benefit for doctor office visits (2 each year). 

There are also optional benefits, like an outpatient surgery benefit (limited to 2 a year) and an emergency accident benefit (limited to 4 per year).  It even covers maternity as any other illness. Not many plans do that!

You probably would like to know how much a plan like this costs. The best way to find out is to run a  your own quote which you can do by clicking here. You can cover yourself, you and a spouse, you and your children or the entire family. 

If you are trying to save money by choosing a high deductible health insurance plan, be aware that one hospital stay can burden your family's finances. By having a policy to cover those deductibles, copays and coinsurance costs can keep you afloat when you need it most.

People don't plan on being admitted to the hospital, much less having to be confined for a week or more. Those out-of-pocket costs will definitely be there when you are released from the hospital, but what about your other bills? For those of us who are self-employed, spending days in the hospital means not working, and not working means not making money that pay our usual bills. Housing, utilities, groceries and car payments can add up quickly if you don't have the money. As I mentioned earlier, this plan pays you so you can take care of those monthly obligations. 

If you have questions about this plan or any of our other insurance plans, please leave us a note in the comments section below, or go to our website at www.SurfFinancialBrokers.com and book a phone appointment. In the meantime, please stay healthy! 

*Not available in Virginia

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!

The Passing of Alex Trebek

I think most of us can agree, 2020 has been a horrible year. And to make it worse has been a series of celebrity deaths to cancer. Neal Peart, Chadwick Boseman, Eddie Van Halen and, most recently, Alex Trebek, have all succumbed to various forms of the disease. Though it may have been a surprise to the public when it happened, it may have been expected for them, as they had been diagnosed long before.

Cancer rarely sneaks up on someone and kills them. People usually don't feel well, so they go to the doctor and get diagnosed. Boseman had been diagnosed four years before passing away in August. Neal Peart had known for two years he was ill and swore his close friends to secrecy. And Van Halen had been receiving treatments off and on for nearly 20 years.

Alex Trebek was a different story though. He went public with is diagnosis of pancreatic cancer in March of 2019. He remained on television throughout it all, looking healthy and maintaining his good grace. "Jeopardy" fans knew he was sick and sent good thoughts and prayers. I was one of them.

It's important to note that he taped his last episode on October 29. That was just a week or so before he passed away. (His final episode is scheduled to air on December 25). 

What does this tell us about cancer? For one thing, it can affect anyone, regardless of status. Cancer does not care if someone is a celebrity. However, when a famous person dies of cancer, it does bring the spotlight to the disease, even when there is a pandemic of Covid going on around us. 

We also know that there are different types of cancer. Van Halen's throat cancer was treated in a much different way than Boseman's colon cancer. As patients, they received treatments like surgery, chemotherapy and radiation, but in varying degrees and doses.

Also, people handle their diagnosis differently. Some prefer to keep their illness private, revealing it only to friends and family, while others feel comfortable going public. I can fully understand both sides of it, but when a celebrity goes public with an illness, cancer or anything else, it brings attention and awareness. This can translate to funding for research into cures and treatments. 

What can you do? First and foremost, ask your doctor about screening options. Depending on your age and family history, your doctor may suggest a screening of some type. Finding cancer early can increase your odds of surviving. 

Of course, you can also purchase some sort of cancer insurance. There are a lot of options to fit your needs and budget. All of them pay you, not the doctor or the hospital, so you can use the money as you need. 

We offer traditional cancer treatment plans, that pay you based on the treatments you receive. For instance, these plans pay benefits for an initial diagnosis, hospital confinement,  surgery, prosthetics and other treatments. These plans can pay out a fairly high amount of money but remember that cancer treatments can take months or years, and you'll need to stay on top of everything like receipts and travel mileage for out-of-pocket expenses.

There are also lump sum policies that will pay one lump sum of money. Many people prefer this method as the benefit is pre-determined at the time of the application and they don't have to worry about turning in receipts for months on end. And one of our carriers who offers the lump sum option also includes free genomic testing, which can assist your caregivers in developing a treatment plan.

We also offer a combo cancer/heart attack/stroke plan, for those who are concerned about these three health issues. 

If you would like information or a quote, go to our website and set a phone appointment that works for your schedule. In the meantime, stay healthy! 

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

Long Term Care Awareness Month In the Midst of Covid

November is Long Term Care Awareness Month and Surf Financial Brokers is here to help you understand why planning for your Long Term Care (LTC) is important. And even more so in a year when Covid_19 has ravaged our nursing homes and other facilities housing the chronically ill, as well as their staffs. As we have all seen on the news lately, planning can make the difference between dying alone in a facility or dying at home with access to loved ones.

I'd like to share with you some interesting numbers.* 

• Average out-of-pocket costs are $140,000 for people who use paid LTC services, and almost 9% will spend over $250,000.
• About 7.5 million people have LTCI coverage, and LTCI issuers paid about $11 billion in benefits to about 310,000 claimants in 2019.

And with the cost of care increasing each year, many people aren't sure if they can afford to be in a facility. if they may need a LTC insurance policy or what other options are available. 

When you include Covid into the mix, it makes planning more confusing. COVID-19 has  already killed at least 60,000 U.S. nursing home residents, and it appears to be increasing nursing home mortality levels by at least about 20% over the usual levels, according to nursing home Covid impact data collected by the Centers for Medicare and Medicaid Services (CMS), the agency that oversees Medicare and Medicaid.

Needless to say, the virus has changed the landscape and how people plan for their LTC needs. But what are your needs if you were to look at the future from now?

Unfortunately, younger people generally don't consider being chronically ill, until they see it happen to a parent or grandparent. This is usually when they realize how expensive care is, not to mention the wide variety of facilities and other options. LTC planning should be a part of the retirement planning process, as they are not mutually exclusive.

How does one handle the problem of the high costs associated with being chronically ill? First, there is traditional long term care insurance. It can be pricey as you get older and the companies reserve the right to raise your premiums, but these policies will also include some extra features like respite benefits for caregivers and can help pay for care in a facility or in the home. 

The number one objection I hear when showing a long term care policy to a client is "What if I die before I use it?' It's a reasonable question, as the premium cost can be high. One option is a Return of Premium (ROP) rider, which would, as the name implies, return premiums not used to the insured (or their beneficiaries) if they don't use the policy. Unfortunately, this ROP option is nearly as expensive as the actual policy and I have rarely had anyone ask for it.

The other option is to purchase a hybrid policy, typically a life insurance policy with either an LTC rider or "living benefits", which allow the insured to use the policy for their LTC needs. If they die before needing care, the life insurance just pays out. This has become a popular option, especially for younger clients. And we have one company that has begun including this into their term life policies.

The last option is Short Term Home Health Care (STHHC), which pays if you are receiving care in the home. One of the misconceptions we find is that in-home care is cheaper than a facility. This may be true if family members are the caregivers, but if a private company is brought into the home, the costs can be nearly double of a facility. 

A STHHC policy can help you stay in your own home for up to 365 days, which don't necessarily have to be in a row. This is a great option for people who are concerned about Covid in nursing homes and assisted living facilities. The policies are very affordable but the applicant must be a minimum of 61 years old. 

If you have questions about LTC planning, let us help. Drop a note on our website or book an appointment for a quick phone call. 

*Figures are from the American Association for Long-Term Care Insurance (AALTCI)

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

6 Term Life Insurance Issues To Be Aware Of

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2 Easy Steps To Get Insurance During Covid

With Covid_19 in the news for the last few months there has been a surge in the number of people interested in differing types of insurance. Our "Covid plan" is nothing more than a list of insurance products that are garnering the most questions from people of late. These products are:

• Life insurance. As we see the death toll rise from the virus we have also learned that it's hitting closer to home as friends and family members are affected. Having a life insurance policy in place can give you the piece of mind to make sure your loved ones are able to pay for final expenses as well as being able to stay in there home. A large number of people in this county either have no life insurance or not enough. We can help you find out how much you need and try to keep the premiums in your budget.   Not sure how much coverage you need? There's a button on our quoting site that will help you for that too.
• Disability insurance. As the cases rise, so do the number of people who are not able to work. Being sick is stressful enough, so don't add extra stress by not being able to pay your bills. Insure your paycheck with a disability policy. 
• Hospital Indemnity. If you get the virus and are admitted to the hospital, that can cost you a lot of money. Deductibles and coinsurance can deplete one's savings and many people of all ages will dip into their retirement account or using a credit card. With a hospital indemnity plan, you can cover the costs of being admitted and confined to the hospital.

These are three great ways to reduce the risk of financial problems should you get ill from the virus. And we have made it very easy for you to get a quote and start the process in just a couple of steps.

Step 1. Run your own life insurance and disability quotes right from our website. Click here to run a quote for whole or term life insurance, as well as disability insurance*. If you would like a price for our hospital indemnity plan, click here to run a quote*.

Step 2. Start the application process. After booking your own appointment that works with your schedule, we'll give you a call and take your application right over the phone. The call will take a few minutes to get your information and your application will be sent immediately to one of our underwriters. 

We know that you are concerned about the virus and want to keep your family as safe as possible by social distancing. By taking your application over the phone you don't have to worry about an agent coming into your home and in most cases, a paramed nurse is not necessary either.  That makes the whole process much easier and less stressful.

The pandemic continues to spread throughout our nation, as well as globally. As we look forward to a day when we can get back to our normal lives we have to stay vigilant. Staying healthy should be a top priority for everyone, but making sure that our personal financial situation remains healthy is important too. Let us know if we can help you and please, stay healthy!

*Remember that quotes are estimates and not guaranteed premium prices. 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! Thanks!