FE Question From New Agent

[JGold814]

preneed funeral policies can get kind of pricey. he'd probably be better off with a SIWL policy if he's only looking for a small amount of coverage.

if the guy is only 54 now and in decent health, he'd probably be even better off getting a fully u/w UL policy...he could get a lot more coverage for a similar premium assuming he qualifies.

what's his health like?

 

[jdeasy]

I read this 5 times and still don't get it. What is "overage"?

If one has a $15,000 policy and made the funeral home the beneficiary and the funeral cost was $10,000 the overage is $5000 that is paid to the family or to the estate.

Same for preneed. If the person picked out and paid for a $15,000 funeral and the family decides on a different funeral and it costs $10,000 there is a $5000 overage. More likely on a preneed though, the overage is due to the policy increasing more than the cost of the funeral.
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preneed funeral policies can get kind of pricey. he'd probably be better off with a SIWL policy if he's only looking for a small amount of coverage.

if the guy is only 54 now and in decent health, he'd probably be even better off getting a fully u/w UL policy...he could get a lot more coverage for a similar premium assuming he qualifies.

what's his health like?

I would never sell UL for final expenses. I suppose some agents will, but not once they learn the FE market.

 

[Franz Kafka]

Thank you JD. I was confused about this part:

If their funeral is $9,000 but they paid $14,000 in premiums they get nothing back. This is true for preneed as well as final expense.

Also, this is a separate topic but do you guys know if Dignity Memorial sells their plans through independent agents?

 

[WinoBlues]

preneed funeral policies can get kind of pricey. he'd probably be better off with a SIWL policy if he's only looking for a small amount of coverage.

if the guy is only 54 now and in decent health, he'd probably be even better off getting a fully u/w UL policy...he could get a lot more coverage for a similar premium assuming he qualifies.

what's his health like?

My brother is 54. I would have no problem putting him in a well priced underwritten policy versus going to a SI policy right out of the gate. Hell, he is only 54.
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I read this 5 times and still don't get it. What is "overage"?

I think what the OP is asking is if the client pays in more than the death benefit does the bene get the difference also.

Example: $10k for this guy w/RNA = $380 yr. $10,000 / $380 = a little more than 26 years of premium. So if he dies after that he is paying more than the death benefit. That is the overage he is asking about. I think. Outside of preneed, they do not get that back.

 

[Newby]

My brother is 54. I would have no problem putting him in a well priced underwritten policy versus going to a SI policy right out of the gate. Hell, he is only 54.
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I think what the OP is asking is if the client pays in more than the death benefit does the bene get the difference also.

Example: $10k for this guy w/RNA = $380 yr. $10,000 / $380 = a little more than 26 years of premium. So if he dies after that he is paying more than the death benefit. That is the overage he is asking about. I think. Outside of preneed, they do not get that back.

They don't get it back inside of Preneed either.

The difference with Preneed is that once they are upside down, the policy will eventually grow to more than they paid in IF they live long enough. This is because the premiums are eventually paid up but the policy continues to grow as long as they live.

With FE once the policy is upside down, it will never recover. However it takes longer to get upside down because the premiums are lower.
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Thank you JD. I was confused about this part:



Also, this is a separate topic but do you guys know if Dignity Memorial sells their plans through independent agents?

Dignity Memorial (Service Corporation International) only sells their funeral Preneed policies through their captive agent force. They use American Memorial Life Insurance which they formerly owned. They sold it to Assurant several years ago when their stock nose dived and they needed to pay down debt.

They allow FE agents to use the Dignity planning tools through several insurance companies including American Memorial. These are not Preneed plans though.

 

[Franz Kafka]

Thanks, Newby. That's too bad because 9 out of 10 burials I attend are at one of their cemeteries.

 

[Newby]

Thanks, Newby. That's too bad because 9 out of 10 burials I attend are at one of their cemeteries.

You should contact the local sales manager to see if he has an outside field sales force. Some of their locations do have non-employee field agents for the cemeteries. You would likely need to attend weekly meetings but you would likely need the training anyway.

It can open a lot of doors and put you in front of a lot of people.

 

[VolAgent]

My brother is 54. I would have no problem putting him in a well priced underwritten policy versus going to a SI policy right out of the gate. Hell, he is only 54.

Just remember, the policy also has to get issued. A cheaper premium for a policy that never gets issued does no good.

JGold, you have to ask yourself something. Is this the first time the 54 year old has ever bought insurance? Is he willing to do the exam and wait 4 to 6 weeks for an underwriting decision? Or is he better off with that SI you can sell him today? Also, will he buy enough coverage to make fully underwritten feasible? Sure, he may get it for a better premium, but he also may insist he only wants a smaller amount.

Every visit to the guy's house is another chance for something to go wrong.

 

[WinoBlues]

Just remember, the policy also has to get issued. A cheaper premium for a policy that never gets issued does no good.

JGold, you have to ask yourself something. Is this the first time the 54 year old has ever bought insurance? Is he willing to do the exam and wait 4 to 6 weeks for an underwriting decision? Or is he better off with that SI you can sell him today? Also, will he buy enough coverage to make fully underwritten feasible? Sure, he may get it for a better premium, but he also may insist he only wants a smaller amount.

Every visit to the guy's house is another chance for something to go wrong.

I understand what you are saying. However, ifs and maybes go both ways. If he is in std health, if he does get issued. The same ifs hold true for a 40 or 60 year old as well. Now, is it easier? Yup. And on $10,000 maybe the right thing. However, that is not an absolute. Maybe his family will be better off with more money when he dies. Maybe a fully underwritten WL or even a short pay GUL would be the right thing. I have written SI on teenagers and even babies due to health. I have been in many homes where an agent wrote the whole family SI. From granny down to the babies and they were all healthy.

As an agent, I get it. If I was running leads, running from house to house, SI is the fastest way to get issued paid. Same with no PHI. But as jgold mentioned a non med Wl would have been almost as fast. And maybe a much better policy for the family.

just my two cents.

 

[VolAgent]

I understand what you are saying. However, ifs and maybes go both ways. If he is in std health, if he does get issued. The same ifs hold true for a 40 or 60 year old as well. Now, is it easier? Yup. And on $10,000 maybe the right thing. However, that is not an absolute. Maybe his family will be better off with more money when he dies. Maybe a fully underwritten WL or even a short pay GUL would be the right thing. I have written SI on teenagers and even babies due to health. I have been in many homes where an agent wrote the whole family SI. From granny down to the babies and they were all healthy.

As an agent, I get it. If I was running leads, running from house to house, SI is the fastest way to get issued paid. Same with no PHI. But as jgold mentioned a non med Wl would have been almost as fast. And maybe a much better policy for the family.

just my two cents.

No absolutes here. Just some food for thought for JGold.

Also, I use to think SI was all about the agent. But really, IMO it came about due to consumer demand. They don't want to spend 6 weeks getting insurance and they are willing to pay for convenience.

If you don't believe it, just look at all the restaurants we have, car washes, heck even pre-mixed drinks. Consumers are saying time and time again, they will pay more if you make it easier for them.

Size up your prospect and use your best judgement. Will they stick with you long enough for the fully underwritten route, or do they need a non-med or SI product?