Reverse buyers remorse.

I think most people have experienced buyer's remorse. This is when shortly after you have purchased a large item you begin to second guess yourself about whether you have made a wise decision. This frequently happens with cars or homes as they tend to be the largest purchases we make during our lifetime. But what do you call it when you have regrets about something you did not purchase. I have been drawing a blank on what that would be called. I think the best phrases that come to mind are "woulda, coulda, shoulda" or "the one that got away".

This could apply to a stock purchase you were considering, or a home you nearly bought. Both these are examples of items that could easily have appreciated rapidly during a short period of time. But could those same sentiments ever be used to consider the purchase of insurance?

All too frequently it could. For example, the person who did not have collision coverage on their vehicle, or carry enough homeowners protection to cover the loss of personal effects after a fire.

With your health and life it is even more a risk as we are all but guaranteed something will happen to us at some point in time. However, the one scenario that I most frequently face is when people are shopping for Long Term Care insurance(LTC). This is the single largest financial risk most people have not considered. I tell folks the most important thing a person needs to buy LTC insurance is not money, BUT their health. If you cannot qualify health-wise it does not matter how much you are willing to pay the insurance company will not issue a policy.

In addition the way the premiums are figured I advise clients that if they do not purchase LTC insurance when they are first made aware of it the chances are very high they will NEVER purchase at a later date. The reasons are that the costs for LTC insurance are not only based upon your health but also your age and marital status. If a person were to wait an extra 3 years to purchase a policy the premiums could easily be 20% or more over the current rate.

In looking back at over 20 years of offering LTC insurance one thing does tend to jump out at me. The actual premium costs today are still fairly constant in relation to the benefits from 20 years ago. By that I mean a decent policy will generally cost a married couple for 12 months premium what they would spend if one person needed just 2 weeks of coverage in a facility. Wow, when you analyze the numbers like that it seems like a bargain.

If you have never taken the time to review the costs of Long Term Care insurance why don't you take a few minutes now to call me and have a chat. I don't want you to be the one who says "if only....."  

Email questions or comments to:

Phil@CastellFinancial.com 

How did you hear about me? A fairly simple question, but when the answer is that my neighbor told me to come to see you or a friend at church said that you can help, or you helped my mother and she was very pleased, then I know I have done it right.  REFERRALS are what every agent craves, strives for and works hard to create.  They are instant street credit.  I have lived up to what another person believes is good service. If I can do it again, maybe YOU will tell someone about me.  This is advertising that I cannot buy, Word of Mouth.  In a small town such as Sequim, Port Angeles, and the whole of the North Olympic Peninsula, this is invaluable.  I recently had a situation I would like to share in respect to word of mouth advertising and referrals.  A new client called me and said he is changing his insurance and I have helped his wife so he would like me to help him.  The key is that he is also an insurance agent, but he doesn't sell health insurance.  I went to visit him in their home in Port Townsend (yes I make house calls) and then mentioned that I was going to have lunch with my wife after the appointment.   

They recommended a restaurant called DOCS Marina Grill.  www.docsgrill.com  The food was excellent, the service was very good and even better, the deck in the sunshine was sublime.  Best of all they had straw hats for those of us who are follicly challenged so we could sit on the deck.  If you are in Port Townsend, or you just want a great meal on a wonderfully sunny deck, it's worth the effort to get to Docs Marina Grill.  (So there is my referral!)   

f you've had great service from Castell Insurance, please tell someone about us.  You might win our monthly referral drawing for a $50 gift certificate to a local merchant on the North Olympic Peninsula. You never know when a referral will help.  Thanks and enjoy the sun (with a hat and sunscreen).

Email questions or comments to:

John@Castellinsurance.com 

This summer is the summer of building for me. My wife Sarah and I are building our family and are anxious to welcome our first child this August. We are also building a new home here in Sequim with construction starting this month. Our first baby at the time of our first construction project must have some of you thinking we are gluttons for punishment...you might be right! Over this process of hiring a builder and developing house plans I have a new appreciation for the trade. I also have a new, up to date insight into the cost of construction.

My newly tuned understanding of construction costs will hopefully benefit you as you read this as well. Seeing all of the devastation in Oklahoma caused by the catastrophic tornadoes has a lot in the insurance industry worried. Worried that their customers, in hopes to save on premiums, are carrying limits that are too low to rebuild their house to the same level they had previously. A recent study by MSB (Marshall & Swift/Boeckh) showed that nearly two-thirds of US homes are under-insured by an average of 18%. What a tragedy that would be to have lost your home only to find out you had a check coming your way that was thousands of dollars less than necessary.

No one knows your home as well as you. No one knows what updates and remodels you have completed unless you tell them. Most companies won't send out an appraiser in efforts of keeping your premiums lower. That leaves you on the hook with a lot of responsibility to keep your homeowners limits in line with today's building market. There's no exact way to know for sure you have everything right but doing periodic reviews with your current insurance agent can go a long way with keeping up to date. Below is a link to an independent home value survey that will help you assess your Homeowners' limits for only $7.95.

http://www.accucoverage.com

Feel free to contact me with any questions about your current policies, or my current experience with building a new home. I'd love to share my learning's...especially before I become a sleep deprived Father!

James@Castellinsurance.com 

"My idea of good company is the company of clever,

 well-informed people who have a great deal

 of conversation; that is what 

I call good company."

~Jane Austen