Is FE in Clients Best Interest?

[entrep1776]

FE is Simplified Issue and for those that can't qualify for term or fully underwritten policies.

If you don't believe in it, you sure as hell shouldn't sell it!

I agree without faith product is in best interest of client I wouldn't be able to sell. What percentage of prospects do you come across that FE is right product?

I will probably struggle with trying to sell CHEAPEST product for client vs. HIGHEST commission for me. Any advice/philosophy appreciated.

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I refuse to sell term for funeral expenses, {FE}, so I obviously believe that selling term for that would be a rip off.

If I thought that selling whole life is a rip off then I would not sell it.

Now, if the person knew they were going to die in 7 or 8 years then I would have no problem selling them a 10 year term. But since they know, why not just not do anything until just before the time they know they are going to die?

Thanks for advice JD. I think Whole life might be way to go. At one point in Air Force I was in charge of Savings Bond Drive. I thought stock market was wiser choice for most people. But rationalized that having savings bond for typical Airman was better than spending it all on beer.

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If you can't find a reason that an ethical agent would sell it and a rational buyer would purchase it, then don't sell it.

What percent of prospects do you find FE to be right product?

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FE is sold mainly to cover funerals. That's not going away during their lifetime. So term would be the wrong product for the case.

Hi Newby. Do you have example of term not being right product vs. FE. I'm trying to learn. Thanks

 

[bboman23]

I agree without faith product is in best interest of client I wouldn't be able to sell. What percentage of prospects do you come across that FE is right product?

I will probably struggle with trying to sell CHEAPEST product for client vs. HIGHEST commission for me. Any advice/philosophy appreciated.

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Thanks for advice JD. I think Whole life might be way to go. At one point in Air Force I was in charge of Savings Bond Drive. I thought stock market was wiser choice for most people. But rationalized that having savings bond for typical Airman was better than spending it all on beer.

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What percent of prospects do you find FE to be right product?

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Hi Newby. Do you have example of term not being right product vs. FE. I'm trying to learn. Thanks

78 year old with congestive heart failure. Good luck finding term for him.

 

[entrep1776]

These people who get into FE because they want to help people or like the commissions are doomed to fail...

I don't understand. I would think agent that wants to help client and believes this is right product would have belief and be more likely to succeed. Ie trying to serve client's best interest

 

[DayTimer]

Hi Newby. Do you have example of term not being right product vs. FE. I'm trying to learn. Thanks

If you understand that EVERYONE is going to die, and that EVERYONE will incur some expenses as a result, then you should be able to understand that EVERYONE needs to have funds available for their family to pay these final expenses.

A TERM policy is for a specific term. It will EXPIRE. If it EXPIRES before the insured EXPIREDS, you will have done the wrong thing for the insured and his or her family.

Here is an example: I sell John Doe, 65 year old male, non-smoker, a $10K level death benefit final expense simplified issue whole life policy for $53.75/month.

You come along two years later and replace the final expense policy with a 10 year $25K term policy for $35.88 per month. You saved him almost $20/month and you got him $15K more in coverage.

John Doe dies 11 years later. Your term policy expired the year before. Because John Doe had developed cancer in the years since you replaced his whole life, he no longer qualified for anything except guaranteed issue Gerber, which at 175.08/month for the $10K he needed he could not afford.

So John Dies with NO insurance benefit. His family has to put his funeral on credit cards and pay it off at a high interest rate (if they have any credit available at all).

So you saved John Doe $20/month but you screwed him and his family out of the death benefit they needed. Did you think he was immortal and going to live forever?

One final note: You and many others here seem to think that price is all that matters to the typical final expense client. Price certainly is important, and these folks are price sensitive to a degree that others who did save for retirement and emergencies and pre-paid their funeral and bought cemetery plots are not. But these folks also want to feel safe in that they are not getting f**ked by a slick insurance agent, and they will agree to pay a few dollars a month more for a policy and resist attempts by others to replace it if they trust you, like you, and believe you selected the best company and policy for them.

Insurance creates an instant estate for when it is needed. If you understand that, then you will understand why selling term to a poor person with no savings to cover their funeral and other final expenses is not merely wrong, but is grossly incompetent.

 

[Newby]

Hi Newby. Do you have example of term not being right product vs. FE. I'm trying to learn. Thanks

It's simple.

Term is a good product when their need for insurance is temporary. To cover a large debt like a mortgage or a business loan are common needs for term. Another one is to replace income if a husband or wife died during their working years. The need for yhis insurance ends at retirement age. Those are term (temporary) needs for life insurance.

Whole-Life is for needs that are permenant. Funeral expenses or estate planning are the two most common needs for whole-life. If you sell term insurance to soneone that needs it forever you have done them wrong. Regardless of how cheap it is.

 

[myinsurebiz]

I'm researching selling FE.

FE insurance seems like kind of a ripoff for clients. Especially if client can get term life insurance. Term just seems much cheaper.

I would like to sell FE insurance because commissions are so good. If it was a family member, I would try to get them to buy/do something different besides FE insurance.

I'm maybe missing something basic. Any philosophy or advice/insight appreciated.

I hate the term Final Expense. FE is not a ripoff if that is all they can qualify for . . .

Term is not permanent - it goes away at some point.

If 55 or younger - best thing is a Whole Life policy and get a Term Rider for extra coverage when you need it most.

If client is super healthy - go with Underwritten Whole Life with Term Rider.

If client has a few minor health issues - go with Simple Issue Whole Life with Term Rider.

If the client is young and need Term to cover a mortgage, etc - still get the WL but had a large Term Rider to it . . .



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I'm researching selling FE.

I would like to sell FE insurance because commissions are so good.

Do you have an Insurance License already? What State do you reside in?

 

[PA Bill]

I think Cyborg7's back. You've been punked!

 

[VolAgent]

Based on the OPs comments, especially regarding the Savings Bond Drive, I get the feeling the OP never really understands what he is selling, he just follows what other people say about it.

 

[Agentguy5]

I'm researching selling FE.

FE insurance seems like kind of a ripoff for clients. Especially if client can get term life insurance. Term just seems much cheaper.

I would like to sell FE insurance because commissions are so good. If it was a family member, I would try to get them to buy/do something different besides FE insurance.

I'm maybe missing something basic. Any philosophy or advice/insight appreciated.

My father use to say, "either shi$ or get off the pot!"

 

[KRobby]

If still confused, term goes up in price, or worse, often ends before you got dead (with no $ back). It's great for other needs.

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What percent of prospects do you find FE to be right product?

Depends on the campaign. Highly targeted direct mail, quite a few.