Another Reason to Buy FE

[Newby]

Yes, most life insurance policies are not actually assigned to funeral homes. They are assigned to funeral advancing companies (ForeThought owns one and there are several others).

These companies charge around 4% to advance the funeral home the life insurance proceeds today. Some funeral homes charge the family the extra fee, others build it into their price but will usually give an extra 5% discount if the family will just pay cash or check.

Final expense policies do NOT pay the death benefit any quicker than regular life insurance policies as a rule. ForeThought, Lincoln Heritage are the exceptions and both of them own funeral advancing companies.

Problems arise when a policy is contestible OR if there is ANY beneficiaries that won't (or aren't available to) sign the advancing paperwork.

Most quality funeral homes will NOT do services without payment in advance these days. There is usually a bottom-feeder funeral home that will take those in most areas. They get as much money up front because they often won't get paid on the rest.

 

[Frank Stastny]

One funeral home owner I know does over 1,000 lives per year.

How many dead people do they take care of each year?????

Most FE companies claim they will pay within two weeks of being notified. I have sold a ton of FE to people who have a lot of life insurance by giving them that information. This way the person responsible for the arrangements will not have to borrow the money. That policy can be taken to the funeral director.

A friend's father died recently and it took over four months for the company to pay his life policy.

 

[rousemark]

How many dead people do they take care of each year?????

Most FE companies claim they will pay within two weeks of being notified. I have sold a ton of FE to people who have a lot of life insurance by giving them that information. This way the person responsible for the arrangements will not have to borrow the money. That policy can be taken to the funeral director.

A friend's father died recently and it took over four months for the company to pay his life policy.

Was it still in the contestable period? I know when I used to sit in on some claims meetings where marketing, underwritting and claims were all brought together, they would occasionally pick a few random non contestable claims and investigate the hound out of them... That was to make sure everybody was doing their job but they didn't delay the claim payment to do the investigation.

 

[Frank Stastny]

Was it still in the contestable period? I know when I used to sit in on some claims meetings where marketing, underwritting and claims were all brought together, they would occasionally pick a few random non contestable claims and investigate the hound out of them... That was to make sure everybody was doing their job but they didn't delay the claim payment to do the investigation.

I guess I never did ask that question so I'm not sure. However, he was quite old and I assume he had the policy for some time. But then, we all know about ass-u-me.

 

[rousemark]

I guess I never did ask that question so I'm not sure. However, he was quite old and I assume he had the policy for some time. But then, we all know about ass-u-me.

Frank.. I run into that all the time in the antique business.. People will say this came out of my grandmother's house or this came from Mrs. Jones' estate and she was 92 years old so I know the piece is old. They don't realize Mrs Jones may have visited the local Wal-Mart two weeks before she died! Just because they get old, doesn't mean women quit shopping.. Some keep on until almost the day they die because it is in their genes!