I saw this, wanted to share it. FE seems like one of the industries of insurance that has a higher drop-off rate than any other. I am just getting into it, so I have been researching the hell out of it.
This was a nice article and claims this is a good way to increase persistency AND premium, because you are attaching something concrete to the price.
How to Make the Most of Final Expense Insurance
By David Frank
Within the insurance industry, final expense insurance is often an afterthought. However, the time for this simplified issue product, with face amounts ranging from $5,000 to $75,000, has arrived.
Selling this product type can be a challenge when you face a competitive prospect market, low persistency, and the struggle to differentiate yourself. But by taking a few steps, final expense can be a meaningful revenue source.
Increase your market size
Most agents who offer final expense insurance primarily target 65 to 70-year-olds in middle and lower income brackets, a narrow grouping that keeps them from capitalizing on the aging baby boomer generation.
As with everything else the baby boomers have approached, these consumers are changing the way people look at end-of-life planning. Not that long ago, it was a taboo discussion, but this generation wants to have a say in what happens at the end of their life. Many of them are guessing what their parents wanted and paying for the final arrangements themselves. They do not want their children and loved ones to have to do that for them. Using this, you can focus on a broader prospect base of those 50 and older -- a base that others may not be targeting.
Change your approach
When selling final expense insurance, most agents refer to a national average for an estimated funeral cost, such as the ones provided by the National Funeral Directors Association or the Federal Trade Commission (FTC).
However, this only tells part of the story. According to the FTC, "a traditional funeral, including a casket and vault, costs about $6,000, although 'extras' like flowers, obituary notices, acknowledgment cards or limousines can add thousands of dollars to the bottom line."
When you only refer to the average, your clients may think their end-of-life arrangements are covered, but in actuality, they may only have enough to pay for basic elements. Change the dynamic of your relationship by helping them create a customized plan.
Instead of your clients telling you how much they can afford, you provide the expert information that helps them identify how much coverage they need.
Read more at:
How to Make the Most of Final Expense Insurance | LifeHealthPro
This was a nice article and claims this is a good way to increase persistency AND premium, because you are attaching something concrete to the price.
How to Make the Most of Final Expense Insurance
By David Frank
Within the insurance industry, final expense insurance is often an afterthought. However, the time for this simplified issue product, with face amounts ranging from $5,000 to $75,000, has arrived.
Selling this product type can be a challenge when you face a competitive prospect market, low persistency, and the struggle to differentiate yourself. But by taking a few steps, final expense can be a meaningful revenue source.
Increase your market size
Most agents who offer final expense insurance primarily target 65 to 70-year-olds in middle and lower income brackets, a narrow grouping that keeps them from capitalizing on the aging baby boomer generation.
As with everything else the baby boomers have approached, these consumers are changing the way people look at end-of-life planning. Not that long ago, it was a taboo discussion, but this generation wants to have a say in what happens at the end of their life. Many of them are guessing what their parents wanted and paying for the final arrangements themselves. They do not want their children and loved ones to have to do that for them. Using this, you can focus on a broader prospect base of those 50 and older -- a base that others may not be targeting.
Change your approach
When selling final expense insurance, most agents refer to a national average for an estimated funeral cost, such as the ones provided by the National Funeral Directors Association or the Federal Trade Commission (FTC).
However, this only tells part of the story. According to the FTC, "a traditional funeral, including a casket and vault, costs about $6,000, although 'extras' like flowers, obituary notices, acknowledgment cards or limousines can add thousands of dollars to the bottom line."
When you only refer to the average, your clients may think their end-of-life arrangements are covered, but in actuality, they may only have enough to pay for basic elements. Change the dynamic of your relationship by helping them create a customized plan.
Instead of your clients telling you how much they can afford, you provide the expert information that helps them identify how much coverage they need.
Read more at:
How to Make the Most of Final Expense Insurance | LifeHealthPro
