Discussion in 'Senior Insurance Forum' started by magagent, Jul 1, 2010.
So what is the deal with this? Any LH producers actually use this with their presentation?
I did when I wrote LH. It's a nice benefit. About the only thing LH has going for them. I met the the owner of the FCGS and he went over the details and benefits better than any LH person ever had.
It can be purchased by anyone without having a LH policy. It's about $6/mo. to purchase as a stand alone.
It's not really a benefit until the policy is out of contestability. That's something that LH pushers tend to leave out of the discussion.
They don't want everybody to know that they are a marketing gimmick for Lincoln Heritage Life. They want to make it seem like they are the real thing.
You can actually use them with ANY FE presentation if you want. They allow people to pay monthly for the "benefit."
Monumental has a similar benefit now called the Legacy Safeguard. It's free if you buy a Monumental Life FE policy or an NGL single pay policy.
I've used the Consumer Funeral Society's worksheet "good, better, best" price sheet just to give people an idea of current funeral prices in general. Somehow no one ever wants to sign up for the monthly payment for the "benefits."
If you ever get to New Albany, Indiana you might want to stop by and see their office. It's a trailor in the middle of a cornfield according to Google Maps.
Ha!! Newby you and I disgree alot but that is hilarious!! Trailer in a cornfield!!
Actually, it's an old converted barn. I've been there. The office is quite nice. The record keeping is immacualte. Towner is a former funeral home owner and a former life insurance agent.
Once a policy is out of contestability, a member's funeral costs will be paid within 24 hours of death. Not within 24 hours of a death certificate, within 24 hours of death. If the family uses the FCGS, they will save $1000's on the funeral cost. I personally witnessed a transaction where they saved one family in Utah over $4000 on the cost of the casket alone.
It is a great benefit. It is not worth having to buy an LH policy to get, however.
Not many people buy a $4,000 casket anymore let alone one that they can save $4,000 on the price of. I think stuff like this is smoke and mirrors for most people.
There is a true Consumer Funeral Society that people can join for $60 lifetime membership. However they will also tell them not to buy ANY final expense life insurance policy. They are under the impression that NONE of them will pay off. They claim to have filed charges against LH's Guardian Society in two states for being a bogus society that is out to mislead consumers. I don't know if anything will come from that. The guy that runs it is a bit of a nut.
- - - - - - - - - - - - - - - - - -
The death benefit being available within 24 hours of death is available with all assignable policies. It comes with a fee of 4%. That's $400 for $10,000.
I think we all know we can sell $10,400 cheaper than LH will sell $10,000.
But with non LH policies people don't have to pay for that feature unless they use it. With LH they pay for it in higher premiums...even if they don't use it.
Agreed about the saving 4,000 bucks on a casket.
Unless you're Michael Jackson, you can buy a helluva casket for way less than $4,000 nevermind save that much.
People just need to go visit their local funeral home, EVERY PRICE for EVERY piece of merchandise and service HAS TO BE given to them upon request.
Granted Funeral directors can negotiate with the family at time of need to save the deal but not that much.
Go to the local funeral home, get the "General Price List" as it is called. (Might be 8 to 10 pages long)
Circle your choice of caskets, merchandise and services and leave it with the policy.
Family will be happy knowing they are meeting your final wishes.
And send your favorite charity the 60 bucks.
On the one I saw, the funeral home was trying the family almost $7000 for the casket. It was the powder blue Praying Hands casket which, at the time, was the number one selling casket in the US. The wholesale to the funeral was about $1000. They told the funeral home operator that they could lower the rate or they would have one drop shipped to the funeral home by 8:00 am the next day. The funeral home lowered the price to just over $2000.
If a person knew that a funeral home had to accept delivery from another source and could not tack on any fees for handling and were in a negotiating mood at the time of the funeral, they could have done this themselves without the FCGS.
JD, with all due respect the casket you are describing is the Batesville Stainless Steel Blue Mist. It has never been the top selling casket in the US and I can pretty much assure you it has never been in the top 25. And if there is a funeral home somewhere selling it for $7,000 they are making a LOT of money on it. That's WAY over the retail price from any funeral home I've ever heard of. And there are plenty of similar-looking caskets available from China and Mexico that are MUCH cheaper and made of regular steel if someone wants a cheaper version of it.
Most funeral homes mark up caskets 2.5 times. If a casket costs them $1,000 they would retail it for $2,500. There are exceptions that mark them higher but they are not too common. All funeral homes have caskets that look good starting at $1200 to $1500 these days and caskets that are less attractive for less.
That Lincoln Heritage sham company can not offer anything that anyone can not do themselves. Shop the price. Go with the cheaper funeral home and order the casket from Wal-Mart. Anyone can do that. You don't need to buy an overpriced life insurance policy to accomplish that. You can offer that service free to your own clients just like LH does.
I said a person could do it themself if they knew about all that stuff.
Most families do not want to negotiate at the time of a family member's death and most don't know that you can anyway. I don't of anyone outside the funeral or insurance business that knows that you buy a casket anywhere and the funeral home has to use it and cannot add any fees to it.
Plus the fact that the FCGS will pay within 24 hours of death, it makes it easy for them to negotiate with greedy-want my money now funeral homes.
Separate names with a comma.