Does Anyone Sell Pre-need Policies?

[wehotex]

When do you sell pre-need policies vs final expense policies? Is there a much higher cost to offer the "guaranteed price" pre-need?

 

[Mark]

I think Newby does offer them...

 

[Newby]

When do you sell pre-need policies vs final expense policies? Is there a much higher cost to offer the "guaranteed price" pre-need?

Yes I have sold Preneed or funeral trusts as some people call them for over 15 years.

Most people pay Preneed as a single payment or on 3, 5, or 10 year payment plans. The premium is higher than FE because you pay a shorter period of time and the policy grows each year.

Most of my Preneed policies are paid in full within 2 years.

Wealthier people by Preneed. Lower income people buy final expense.

 

[wehotex]

Yes I have sold Preneed or funeral trusts as some people call them for over 15 years.

Most people pay Preneed as a single payment or on 3, 5, or 10 year payment plans. The premium is higher than FE because you pay a shorter period of time and the policy grows each year.

Most of my Preneed policies are paid in full within 2 years.

Wealthier people by Preneed. Lower income people buy final expense.

could I ask you what a typical premium is on a typical policy, i.e., $2000 casket, chapel service/viewing, burial, limo? healthy 67 yr old male Non-tobacco for example?

 

[Newby]

could I ask you what a typical premium is on a typical policy, i.e., $2000 casket, chapel service/viewing, burial, limo? healthy 67 yr old male Non-tobacco for example?

It's a completely different mindset with Preneed. Premium doesn't enter into it because people are usually paying more than they owe to pay it off quickly.

For instance, if someone selects a funeral that is $12,000 they would usually write me a check for $4,000 the day we meet. Another $4,000 at the 12th month and the final $4,000 at the 24th month. That's how 80% of mine are sold unless they just write a check for the whole amount at once.

If people pay monthly their payment will usually be from $150 to $350 per month.

If I meet with someone who is thinking they can't pay the Preneed off quickly or they want the lowest monthly payment and to stretch the payments out, I encourage them to go with FE rather than Preneed.

 

[GreenSky]

If I meet with someone who is thinking they can't pay the Preneed off quickly or they want the lowest monthly payment and to stretch the payments out, I encourage them to go with FE rather than Preneed.

Cremation is probably 75% of the market in Los Angeles. Is it "on fire" in your area?

Rick

 

[wehotex]

Cremation is probably 75% of the market in Los Angeles. Is it "on fire" in your area?

Rick

Cremation seems to be big over here in SA too. Only a few have expressed interest in a full blown service. That is what has spurred my interest in learning more about these.

 

[Newby]

It's about 30% cremation around here Indiana and Kentucky.
Cremation doesn't always mean DIRECT cremation though.

I had cremation for my parents but we had funerals first. Our services were around $7,500 each and we are about to pay $4,000 more for Mausoleum niches for their urns.

Cremation doesn't always mean cheap.

 

[wehotex]

It's about 30% cremation around here Indiana and Kentucky.
Cremation doesn't always mean DIRECT cremation though.

I had cremation for my parents but we had funerals first. Our services were around $7,500 each and we are about to pay $4,000 more for Mausoleum niches for their urns.

Cremation doesn't always mean cheap.

wow, that is pricey. I priced a direct cremation on the po' side of town for $1500 w/death certif & box. A cremation with rented casket for viewing was $4,400.

 

[senior-advisor-indiana]

wow, that is pricey. I priced a direct cremation on the po' side of town for $1500 w/death certif & box. A cremation with rented casket for viewing was $4,400.

We just toss em in the wood burner round these parts.