Avergage Comm. in Final Expense ?

[donamese]

According to an Life Insurance Council survey I saw, the average annual premium in 2012 based on 2.1 million policy count was $558.

 

[WinoBlues]

According to an Life Insurance Council survey I saw, the average annual premium in 2012 based on 2.1 million policy count was $558.

Wow, Was all life insurance or specific to FE type products. If all life insurance that seems pretty low. Even if skewed heavily with term. Assuming individual and not group.

 

[donamese]

Wow, Was all life insurance or specific to FE type products. If all life insurance that seems pretty low. Even if skewed heavily with term. Assuming individual and not group.

The survey was exclusively for final expense.

 

[WinoBlues]

The survey was exclusively for final expense.

Those are the numbers I have always heard so must be about right.

If a 70 year old buys a plan to take care of FEs and she is looking at a plan that will do the job for say 20 years. you are looking at $50 - 100 mo. Average $75. No?

My thinking is based on $10,000 being the old minimum policy with $15,000 really being the new minimum I recommend. I must be _way_ off.

 

[rousemark]

Those are the numbers I have always heard so must be about right.

If a 70 year old buys a plan to take care of FEs and she is looking at a plan that will do the job for say 20 years. you are looking at $50 - 100 mo. Average $75. No?

My thinking is based on $10,000 being the old minimum policy with $15,000 really being the new minimum I recommend. I must be _way_ off.

Actually, the premium for 10K 70 year old female NS would be more in the range of $55 per month. Your average age for FE will not be 70.. The same overage for a 60 year old female is only in the $35 per month range.. Believe it or not, there are still a lot of policies sold for less than 10K coverage. I would say an average FE premium in my area is less than the national average.

 

[donamese]

I believe the survey had the average age at 62 with the average face amount being just over 10K. Survey had 27 carriers represented.

 

[WinoBlues]

Actually, the premium for 10K 70 year old female NS would be more in the range of $55 per month. Your average age for FE will not be 70.. The same overage for a 60 year old female is only in the $35 per month range.. Believe it or not, there are still a lot of policies sold for less than 10K coverage. I would say an average FE premium in my area is less than the national average.

All of those numbers hold true what the other guys said also. I have also talked to a couple local FE guys that write the heck out of $5-$10k policies.

Just different markets I guess. Many of my 60 year olds are healthy or at least Std. I seem to run into more large unhealthy 40 year olds than 60 year olds.

 

[SportsNut]

On average i was hoping for some answer to the following:

1. I WAS HOPING someone would be so kind as to tell me how much avg. comm. are when selling a Final Expense Plan.
2. Aprox. how much do they advance you and when?

Others have adequately addressed the how and how much but I didn't see anyone mention the WHEN....

WHEN is a variable from company to company and agency to agency. There are some companies that will pay on submitted business, meaning as soon as they verify a few pieces of info on the appl they will pay a comm. This is getting to be a less frequent occurance. More frequest are companies that will pay upon issue, and even before they have collected the fund from the client... but they have verified the account existence, etc. Most companies will pay once the clients bank account is drafted and the transaction is settled.

The three approaches above can get you paid from 2 day on submit (risky business), then 5 days to a week and a half for paid on issue, then 3 to 5 weeks paying on paid and issued business, depending upon which approach is used above.

The above is slightly negotiable with an IMO in some cases. With a track record an IMO may authorize a faster payment method than for that of a newby with no track record of writing business. Hope this fills in the rest of the question/answer.

 

[newtothegames]

Others have adequately addressed the how and how much but I didn't see anyone mention the WHEN....

WHEN is a variable from company to company and agency to agency. There are some companies that will pay on submitted business, meaning as soon as they verify a few pieces of info on the appl they will pay a comm. This is getting to be a less frequent occurance. More frequest are companies that will pay upon issue, and even before they have collected the fund from the client... but they have verified the account existence, etc. Most companies will pay once the clients bank account is drafted and the transaction is settled.

The three approaches above can get you paid from 2 day on submit (risky business), then 5 days to a week and a half for paid on issue, then 3 to 5 weeks paying on paid and issued business, depending upon which approach is used above.

The above is slightly negotiable with an IMO in some cases. With a track record an IMO may authorize a faster payment method than for that of a newby with no track record of writing business. Hope this fills in the rest of the question/answer.

could you kindly post what companys pay on submission?

 

[PittAgent]

could you kindly post what companys pay on submission?

Lincoln Heritage does.