My Discussion With Michael Seabolt

I recently met Michael Seabolt through a LinkedIn insurance professionals' group. As I am an agent who works directly with clients, I thought it would be interesting to give you some insights from the perspective of someone who works behind the scenes with agents and financial advisors. 

Michael Seabolt is currently the managing member of Flower Risk Advisors, LLC, a cannabis industry focused tax and risk mitigation consultancy. In this role, Michael consults with cannabis business owners and executives, and their tax and legal advisors, providing risk and tax management solutions for the legal cannabis and hemp industries.

Michael also is a contracted consultant with Bell & Associates Consulting, LLC is Phoenix, AZ which is an independent insurance brokerage firm representing over 70 of the largest life insurance and annuity carriers. In this capacity, Michael consults with financial intermediaries (financial advisors, insurance agents, tax and legal advisors) to provide tax mitigation and risk protection solutions for their business owner and high net worth clients.

Michael has over 25 years of professional experience in the financial services industry, primary in wholesale distribution of managed money, investment advisory and insurance space. His experience includes VP of sales and business development for an international asset and wealth management firm. In this role Michael developed relationships with financial advisors, family offices, insurance and trust companies and private banks to broaden product offerings for their institutional and high net worth clients.

Previously, Michael spent nine years with a London based hedge fund and wealth management firm. The position involved extensive international travel with offices in London, Hong Kong, Nassau and Switzerland. His responsibilities here included private client meetings, conference presentations, panel board advisory and executive level relationship management.

In his free time, Michael enjoys spending time with his three children. You can find them on the ski slopes in the wintertime and the golf course in the summer.

With an impressive resume like this, you can understand why I wanted to discuss with him how his part of the insurance industry works.

Thanks for taking the time to talk today. You have an very interesting background, but I'm curious as to how you got into the insurance industry.

I've been in the financial services industry for 25 years, the last 9 of which have been in the insurance industry. I spent 5 years with Allianz, one of the world's largest insurance companies, covering US broker-dealer distribution. I've had my private consulting practice for the last 4 years, focusing on utilizing life insurance for tax and risk mitigation.

How do you find your prospects?

My clients are insurance agents, financial advisors, CPA's and attorneys. I help them with their largest clients and most complex needs. 

How do you prepare for a client meeting?

I perform stringent due diligence on the financial professional with the goal of understanding their practice so I can be most effective in our meeting. 

We met through LinkedIn. Have you had much success with it?

LinkedIn is a good medium for connecting with colleagues in the industry.

I agree. I think too many people avoid networking within their own industry sometimes because some of those people are competitors, but I've gotten some great sales tips and advice.

Not counting my book, do you recommend any good books on sales?

"Tax Free Retirement" by Patrick Kelly and "The Power of Zero" by David McKnight. 

I also enjoy Patrick Kelly's books. He has some good videos on YouTube as well. That leads to my next question. Do you have a mentor? How have you become a mentor for others?

I have been fortunate enough to have had several mentors and sources of influence in my career. I enjoy "paying that forward" and train agents and advisors on how to optimize their practice and gain traction in the business owner and High Net Worth client channel.

Has Covid affected your practice?

I have been unaffected personally from the pandemic, however my practice has flourished. Mortality risk has become front and center in our daily lives and clients appreciate the benefits of life insurance and long term care protection. The massive Federal debt spending which injected capital into our financial systems will lead to significantly higher taxes in the future. We need to educate and empower our clients today to protect themselves for this coming tax risk.

I agree. Sooner or later we're going to have to pay the bill. On a related note, what did you do with your first commission check?

1999 Chateau Haut Brion and aged petit filet.

That is great! That must have been one nice commission check. Last question, have you ever had a strange or unusual encounter with a client?

I am fortunate to have engaging conversations on a daily basis. I will share a story of a client whom passed away last year from Covid after recently purchasing a life policy from us. I felt blessed to be able to deliver a ix-figure death benefit claim check to his surviving spouse. There are fewer more fulfilling moments in our industry.

When it comes down to our business, that is what we do. Thanks for your time! I am sure our readers appreciate this information as well. 

Michael can be reached through is website at www.consultbell.com

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Wouldn't You Rather Spend Your Savings On Something Fun?

I recently had a conversation with a very nice couple from Greensboro, NC. They both worked as realtors, had three children and seemed like they were doing a good job executing their financial game plan. 

As the housing market has been doing well, they have managed to sell more in the last year. They both know that things won't stay this way forever, so they put aside a good amount of money each month for their "rainy day fund". Having the discipline to this and stick to it is rare to find these days, so I told them they were doing an awesome job. 

We continued to discuss their other financial issues. They had a decent amount of life insurance on themselves (they probably could have used a bit more) and had started a retirement account  as well. This was especially encouraging because it can be a difficult task when one, or in this case both, of the spouses are self-employed. Nobody is deducting money from their paycheck for them. 

I was starting to think they didn't need me at all. However, it didn't take long to discover there was one potential landmine that needed to be addressed. I asked them a basic question. "Do you have enough money put aside to help pay bills if you are sick or hurt and can't work?" 

They thought about it for a minute and said, "Well, we could dip into our savings." 

"You're right. You can do that. But is that what you are saving for? To cover bills?"

They hadn't considered this so I offered a better alternative. "If you couldn't work, you wouldn't have that income. Sure, one of you could pick up some of the slack, but do you want to go through that? Your savings should be for things you want down the road, like a vacation or to buy a nice car. No one saves to pay bills."

"Let's do this," I suggested. "Let's take a look at disability insurance. The premiums won't break your budget but it could keep you from having to go through your savings." 

They agreed to look at a few options. As we move through the process I'm sure they will both complete applications. And since they are both fairly young and healthy, they should both have policies to protect their paychecks soon. 

Are you setting money aside each month for a rainy day or something fun like a vacation or a boat? Do you really want to have to dip into that money to cover your bills? What if you could shift that risk to an insurance company and let them cover your bills? 

If you are a business owner, a contract employee or otherwise self-employed, ask an agent to help you find a disability policy that fits your needs. 

Special Offer: If you aren't sure how much disability you need, we have a one-page PDF that can help. To get a FREE copy drop a note to chris@surffinancialbrokers.com and we'll send it to you ASAP. 

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Let's Keep Your Private Information Private

Last week, while on a work trip in Virginia, I saw a commercial on TV for life insurance. You more than likely have seen these ads as well. 

"Bob, 45, just got $2 million life insurance policy for $10 a month! Let us help you!" the voice over guy screams. A blur of fine print flashes across the screen. I'm not sure if I read it all correctly, but it implied that Bob got super ultra preferred rates because he runs marathons daily and is 4% body fat. In essence, Bob will never die.

I'm exaggerating a bit, but you get the point. The ad shows the best case scenario, but we all know that if we could have read the rest of that blur of words, it would also mention that all rates are subject to underwriting and your premium could differ. 

These ads are for insurance agencies which represent multiple companies. When someone goes online and looks for a quote, the agency gathers your information. But what does it do with that information, like your date of birth and email address? That information is sold to an insurance agent who has purchased that lead. 

Here is where things get weird. Many insurance agents will purchase leads. They think it will be worth the cost to avoid having to prospect for clients or advertise. Personally, I have never had much luck with leads of any kind. 

I used to work with a life agent, who we will call Pete. Pete paid a service approximately $300 for a year's worth of leads. Part of this deal was that Pete could choose up to three zip codes, and if the leads were in those zip codes, the agency would email him the prospects information. The problem was that there could several agents signed up for the same zip code, and they would each get an email.

According to Pete, he needed to wake up early enough to get the email and be the first agent to call the prospect. If he was too late, even by a few minutes, the poor prospect, who didn't understand what was going on, would yell at him. "I was looking at life insurance in the middle of night because I couldn't sleep. I didn't realize I was going to get five agents calling me!"

Pete also told me that most of these leads were from people who were "kicking the tires" to see how much insurance would cost and had no intention of actually buying a policy. And if they did, the premiums would be so low that his commissions would never make up for the $300 he paid for this "service". 

We do things a bit differently. If you go to our website, we also have all of the big name insurance companies, and our site compares rates as well. And, yes, we do gather your information as well. But that is where any similarities end. 

If someone likes a quote on our site, they can start an application. We don't sell data to agents. We will contact prospects to let them know we are available if they have questions or if the insurance carrier has any underwriting questions. And if someone would like to speak with an agent, they can always contact us.

Everyone is trying to stay within a budget, even when it comes to making sure that their family can stay in their own home if tragedy should strike. But one should make sure they are purchasing the amount they need as well. Our quoting engine has a calculator to help find out how much coverage is needed, which is important. Too often people don't apply for enough coverage. 

Do you know someone who needs a little more life insurance? Pass along our website and help them protect their family's financial future.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

Wrapping Up Disability Insurance Awareness Month

Memorial Day is upon us, which is the day we recognize all of the men and women who served in our military and made the ultimate sacrifice. It is an important day and too many of us don't take the time to appreciate these people. If you have an opportunity to attend a ceremony, you will be happy you did.

As it's also the end of May, we can close the books on another Disability Insurance Awareness Month (DIAM), which is when the insurance industry promotes the importance of disability insurance. Unfortunately, disability coverage is not top of mine for most people. Part of this is due to misconceptions of why to buy it and what it does.

For example, most group disability plans cover a few weeks "maternity" coverage, immediately after a child is born. I have worked in some of these groups, like schools and municipalities, when the employee decides to drop her coverage because "I already had my kids." I try to plea with people to keep their policy, not because I'm will lose a commission (I'm on a salary), but because there are so many other times when that policy will be useful.

One of my old sales managers would tell us that when people hear the word "disability", they think of someone in a wheelchair who has been seriously injured in a car accident. The truth of the matter, however, is that over 85% of disability claims are for illnesses, with cancer being the leader in that category. (Heart disease and other cardiovascular illnesses are not far behind.)

Of course there are those people who do get injured. I spoke with a teacher in western North Carolina who had been in a car accident. Someone "t-boned" her car and broke her femur. She was out of work for four months while she went through physical therapy. Of course, her policy did what it was designed to do, which made her a strong advocate for disability insurance among her coworkers.

But what is your disability policy designed to do? Your policy is actually "paycheck" or "income" protection. If you were to get sick or hurt and were unable to work, your policy would help you pay the bills. And we all know that those bills don't stop coming just because you are a very nice person. 

There are those people who don't necessarily need a disability insurance policy. They may have passive income, like rental properties or other investments, that will provide some money to pay monthly bills. For most people, though, this is not the case.

If you have an employer who offers a disability policy, take a good hard look at it. And if you are a business owner, a contract employee or otherwise self-employed, you may want to consider an individual disability policy. They have a few differences from the traditional group plan but can be an integral part of your financial plan.

Have a great Memorial Day and remember those who gave all for our freedoms.

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

What Is Heart Attack and Stroke Insurance?

Even though Covid has been the main medical headline for the last year or so, other serious health issues are still leading to more deaths. Heart disease, for example, is the leading cause of death in the United States, and as Covid deaths continue to decrease due to vaccines, strokes and cancer will remain near the top of the list as well.

Many times on this blog I have discussed the importance of a cancer insurance plan. Cancer, which comes in many forms and can be specific to one organ or another, is recognized by many when the topic comes up. And even though we all know that heart disease and cardio vascular issues prevail, we don't discuss them as much as cancer.

Part of this is because for many people, avoiding these health problems is a matter of changing one's lifestyle, diet and fitness goals. Making those changes, like eating less pork, drinking less alcohol and going for a walk tend to cut into our wants and needs. And it can seem as if it interferes with our work day. Of course, stress is a leading factor in all of this.

Yet we see and hear about heart attacks and strokes all the time. Think of all the commercials on TV for medicines that can reduce your chance of a heart attack or stroke. 

The effects of a major health event can be long lasting. Physically, one can expect to be on some sort of medication for the rest of their life after experiencing a heart issue. A stroke can be debilitating and lead to other issues. My mother had a small stroke while undergoing knee replacement surgery. The stroke, which affected some of her motor skills, also kicked her dementia into overdrive. What was previously some age-related memory loss became full-blown episodes.

There is a financial cost to all of this as well. Anyone who has been hospitalized for a cardiovascular disease knows all too well that there will be deductibles, copays, out-of-network cost (just because your hospital may be in the insurance company's network doesn't mean that everyone that works there is in the network!) and other out-of-pocket expenses. This can add up quickly. And believe me when I say this, not everyone wants to contribute to your GoFundMe page. Plus there is the loss of income when someone is out of work as a result of one of these illnesses.

With all of this in mind, it is important to know that there are insurance policies available that help cover these costs. Most of them pay a lump sum amount in the event of a major health issue, like a heart attack or a stroke. We offer several of these plans, including the following:

• Cancer, Heart Attack and Stroke plan. Just as the name implies, this policy will pay you a lump sum of money (you choose at the time of the application) when diagnosed for one of these conditions.
• Critical Illness. These plans also pay a lump sum but have a different array of illnesses. Most include heart attack, stroke, comas, and other major health events, but cancer may or may not be included. Check with your agent to see what they offer.
• Disability Insurance. When people think of disability insurance, they think of someone hurt who is in a wheelchair, but over 85% of all disability claims are from illness, with cancer and heart disease at the top of the list. 

If heart disease runs in your family or you have concerns about one of these health events, drop us a note or schedule a quick phone appointment with us. We'll be happy to help you with a quote. In the meantime, please stay healthy!

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

My Discussion With Pat Ardern

One of the things I appreciate about LinkedIn is the opportunity to meet and network with people who are in the same industry as myself. I recently was afforded one of these opportunities when I had a chance to talk with Pat Ardern. 

Pat Ardern is the Branch Office Supervisor of the Transamerica Financial Advisors branch in Stillwater, Oklahoma and she supervises securities licensed reps throughout the state. She enjoys travelling and spending time with her two children and grandson, and she is active in the community and her church.  

Below is my conversation with Pat.

First off, I'm curious as to how you got into the financial services industry.

 

I was laid off in 2007 after the company I had worked with for 9 years was purchased by another company. As I watched the furniture being carried out of our office, I felt like someone had died. The next morning I woke up with the question, “What do I do now?” This was a transformative event for me which brought me to the decision that “This will never happen to me again.” I knew I needed to find a way to have my own business.

At the time, a friend of mine was studying for her securities license with a large, well-respected firm. I asked her if I could look at what she was doing. The financial services industry had always intrigued me, and coming from an accounting background and being a numbers person, it seemed like a fit. I really liked the concept of "recurring income"! The biggest “fit” was that I would be independent and calling my own shots. I came on board with the firm and have never looked back. This industry is not easy, but is a chance to see what you’re made of. I can’t imagine working for someone else ever again.  

 

Tell me how you find your prospects.

I work primarily from referrals. Networking is the way I started out, and I built referrals from there. Everyday encounters yield great new relationships as well. As my book of business grows, referrals from current clients are priceless. Our firm is cutting edge with technology using videos, livestreams and webinars to extend our reach. 

How do you prepare for a client meeting? 

The first client meeting is a "financial needs analysis". There are basic financial concepts that everyone needs to be using in their plan. I have a series of questions that assist me in learning about their current situation, as well as current and future goals. We determine their "FIN" (financial independence number). The FIN number is like a GPS. If you don't know the destination how will you know the route?

I like that. We all need to know where we are going. What kind of networking works for you? Online and/or networking groups? 

Both in person and online networking are beneficial. Whichever you use, the goal is to meet people and build relationships. We all meet new people all the time, and most are open to striking up a conversation. People like to talk about themselves, so it pays to be a good listener.

You are correct! Not talking and listening is one of the hardest parts of this job for me.  

Do you recommend any good books on sales? 

I like Grant Cardone's sales material. "Think and Grow Rich" by Napoleon Hill is a must read. A couple of other books I'd recommend are "Evangelpreneur" by Josh Tolley and "Think Like a Monk" by Jay Shetty. I think in anything success is from the inside out.

It's important to share that kind of learned knowledge. Do you have a mentor? How have you become a mentor for others?

 

I have a few mentors in our firm. Our team building platform exposes me to many extremely successful mentors who have been in our business for 30+ years. In turn, I duplicate the tried and proven system with my team.

Has Covid affected your practice? 

 

Our business has actually increased during Covid. One reason is that we were positioned perfectly with digital resources so we didn't miss a beat. Secondly, I think people were more open to take the time to talk finances while they were working from home and not as socially active. Some tended to become more thoughtful about what's important and their planning for the future. We have no regional restrictions so we can do business anywhere via Zoom.

What did you do with your first commission check?

  

I remember my first check as being less than $100. I spent it, but that first check was priceless. It showed me that what I was doing was legit and gave me the confidence to keep working to make multiples of that check.

Have you ever had a strange or unusual encounter with a client?

I inherited an old annuity contract for which the writing agent was no longer active. The contract owner was a very well known, famous if you will, person. At first I assumed it to be someone who had the same name as the well known person, but it turned out to be the "celeb". I had a nice lunch with the individual and we have talked several times since. It's a small world. 

I'm sure this person appreciates your discretion. 

I know you like to promote financial literacy. At what age do you think kids should start learning about finances?

The best way to teach kids about finances is to be a good role model. That starts very early as our kids watch what we do from day one. I think a parent can teach their child to have the three buckets, Save, Give and Spend from the very first time the child acquires money as a gift or for doing chores.

How can financial literacy be taught to adults who have never really been exposed to the subject?

The unfortunate fact is that most people were never taught basic financial concepts. It's not taught in schools. Financial education is a very big part of what I do for clients. Everyone needs to know the basics so they can move ahead. Another tool I use is our book, "How Money Works, Stop Being a Sucker". A very easy read. it's written so young teens can understand it. We believe this little book is changing lives for generations.

Thanks for sharing all of that great information with us Pat! I'm sure our readers appreciate your insight.

If you would like to reach Pat, her contact information is on her website at http://tfaconnects.com/patardern. 

Her financial literacy page is http://wealthwave.com/patardern. 

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!

3 Reasons Why Self-Employed Don't Buy Disability Insurance 2023

One of the most undersold insurance products is individual disability insurance (DI). The reasons for this vary, but many people think of disability as something they should buy through their employer as part of a group plan. There are around 15 million self-employed Americans, the vast majority of which do not have an individual disability policy. Why is this? Here are a few reasons why this is the case.

1.Business owners, contract employees and otherwise self-employed think that DI is expensive. The premiums of DI vary because of many factors. Your occupation is a huge factor in determining the rate you pay. In a nutshell, the more dangerous or labor intensive your job is, the higher your premium will be. It makes sense that a mechanic who works with heavy machinery will pay more than a banker who works behind a desk. 

Also, the amount of coverage you need will be based on your income. The more you earn, the more money you will need if you are out of work.

Even though the price may seem high to some, realizing that DI is actually insures their income helps people see the actual value of the coverage. I ask clients what their greatest asset is and get answers like their car or home. Then I point out that their number one asset is their ability to earn a living, which makes one able to purchase the car or home. That's when they see the value of DI.

2. The application and underwriting process seem difficult. An application for DI is just a bit more involved. Like life insurance, there are health questions. Additionally, there are questions about income and the type of work one does (see above). Some insurance carriers will want to verify income at the time of the application, usually by obtaining tax records. Other companies will do this at the time of a claim. 

As a self-employed person, your income can vary from year to year. I discussed this with one claims rep from a company I represent. She understood completely and said, "We just want to make sure this person was working when they filed a claim." 

A few years ago I had a client who was a personal trainer. The application included a question which asked something like "Does your job entail heavy lifting?"  I had to write an additional letter to the underwriter that the client had to lift weights to demonstrate to his clients proper form. After much confusion the policy was eventually issued.

3. Agents don't always understand it either. I'm not trying to throw anyone under the bus here. As a matter of fact, this is one of the reasons why I personally don't do a lot of Medicare supplements. I would rather refer that out to another agent in our brokerage who understands the product and sell what the clients needs. 

I have met many good life and health agents who just do not feel comfortable selling individual DI policies. There are too many "moving parts" they say. Or they just don't understand how the policy works with Social Security disability, therefore, they can't explain it properly to their clients. Find an agent who is familiar with the product.

If you are self-employed, an individual DI policy may be a great way to make sure you can pay your monthly bills in the event that you are sick or hurt and unable to work. Let us know if you have questions, and as usual, please stay healthy!

Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life, disability, long term care, cancer, accident and other insurance coverages in North Carolina, South Carolina, Virginia, Tennessee and Georgia. He's also is a professional speaker helping sales people be more productive and efficient, and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!