Is FE in Clients Best Interest?

[LostDollar]

If an ill person of 65-85 years is talking to an insurance agent about wanting to provide funds to cover funeral and burial expenses which their family will otherwise have to pay, I think using the adjective "final expense" is fine. I would suspect they want someone to be straight with them and not pussyfoot around the issues.

I don't think anyone gripes about the concept of a "christmas club" savings account (do they still have those?). A final expense insurance policy would just be a "final passing club" savings account. The people inquiring are unable, because of health, other life circumstances or poor money management skills, to manage their own savings club account-so they hire a money manager, just like rich folks do, to help them achieve their money objectives.

Within that framework, what's reasonable and unreasonable becomes a subject for discussion and evaluation. If laws prevent me from using the terms savings and insurance together, I would have to find some different ways to present the product--but conceptually that's what I see going on and why it is a valid product.

 

[goillini52]

If an ill person of 65-85 years is talking to an insurance agent about wanting to provide funds to cover funeral and burial expenses which their family will otherwise have to pay, I think using the adjective "final expense" is fine. I would suspect they want someone to be straight with them and not pussyfoot around the issues.

I don't think anyone gripes about the concept of a "christmas club" savings account (do they still have those?). A final expense insurance policy would just be a "final passing club" savings account. The people inquiring are unable, because of health, other life circumstances or poor money management skills, to manage their own savings club account-so they hire a money manager, just like rich folks do, to help them achieve their money objectives.

Within that framework, what's reasonable and unreasonable becomes a subject for discussion and evaluation. If laws prevent me from using the terms savings and insurance together, I would have to find some different ways to present the product--but conceptually that's what I see going on and why it is a valid product.

FE is AKA Burial Insurance....you might like the sound of that better. Final Expense just sounds a little nicer and the name insinuates that you can use it for more things than just a funeral.

 

[PA Bill]

About 5 years ago , I became friendly with one of the other "football dads". The guy was in his early forties and already had some health issues. He had no life insurance, not even at work. He had a great marriage and family but wasn't exactly a fan of life insurance. But he asked me what I did and I told him I sold small life insurance policies designed to bury people. Guess what? He said that's just what he needed!

So there you go. You can't get quality term in those small face amounts and if you're dealing with blue collar hardasses, they want to keep it simple and will actually ask you to make sure they're getting whole life. They don't want no term, they're going to make the ***ers pay!

 

[kuhn123]

FE is AKA Burial Insurance....you might like the sound of that better. Final Expense just sounds a little nicer and the name insinuates that you can use it for more things than just a funeral.

I've always been a "Burial Insurance" guy. Even working a lead that says Life Insurance on it, I'm still there to talk about a "Burial Policy" until something sends us down a different path. The terminology just rings through to most of our clientele. "Thats what the grad folks had, that's what Ma & Pa had, and that's what I'm looking for".
If someone decides they don't want burial insurance, but rather they are looking for life insurance, I can usually find some of that floating around in my briefcase also.

 

[myinsurebiz]

If an ill person of 65-85 years is talking to an insurance agent about wanting to provide funds to cover funeral and burial expenses which their family will otherwise have to pay, I think using the adjective "final expense" is fine. I would suspect they want someone to be straight with them and not pussyfoot around the issues.

I don't think anyone gripes about the concept of a "christmas club" savings account (do they still have those?). A final expense insurance policy would just be a "final passing club" savings account. The people inquiring are unable, because of health, other life circumstances or poor money management skills, to manage their own savings club account-so they hire a money manager, just like rich folks do, to help them achieve their money objectives.

Within that framework, what's reasonable and unreasonable becomes a subject for discussion and evaluation. If laws prevent me from using the terms savings and insurance together, I would have to find some different ways to present the product--but conceptually that's what I see going on and why it is a valid product.

Dude - let's play a game. The next 24 hours - you have to make any replies / comments using 20 words or less. None of the words can be more than 3 syllables . . .

 

[PA Bill]

I've always been a "Burial Insurance" guy. Even working a lead that says Life Insurance on it, I'm still there to talk about a "Burial Policy" until something sends us down a different path. The terminology just rings through to most of our clientele. "Thats what the grad folks had, that's what Ma & Pa had, and that's what I'm looking for".
If someone decides they don't want burial insurance, but rather they are looking for life insurance, I can usually find some of that floating around in my briefcase also.

I remember a lady who insisted on a $50k universal. When I asked her why she said, "Because that's what I want!". I don't really sell UL. Next!

 

[VolAgent]

Dude - let's play a game. The next 24 hours - you have to make any replies / comments using 20 words or less. None of the words can be more than 3 syllables . . .

Never blame others for your limitations.

 

[DHK]

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.

Term is for generally healthy people with a temporary or TERMINATING need. This is price and quality sensitive based on the agent's skills and understanding of the "if's in life".

Final Expense is for people who would be happy to be approved for anything because they have health issues. They've already GONE through the "if's in life" and don't have any coverage. This is price and quality sensitive compared to the other products and other underwriting factors. It's the agent's job to do the field underwriting and ascertain the best policy based on who they are appointed with.

Price and cost are two very different things.

 

[TampaHound]

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?

Just to add to this point a little bit: Term only pays out 2 to 3% of their policies as well. A FE policy WILL pay out.

Every policy and every client is different. A FE policy is not going to put a child through college for example. But that 20 year term won't pay if that client dies a month after that term ends.

 

[jdeasy]

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.

----------



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.

----------



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

----------



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

FE is nothing but a marketing term for low face simplified issue whole life.

I don't proceed at any home without finding out their why.

My belief is that are two needs for life insurance, temporary or permanent. If the need is temporary then I recommend term. If it's permanent then I recommend whole life.

I don't believe in UL's so I don't sell UL's. GUL or otherwise.

Whether I write SIWL or FUWL for the permanent need always depends on the situation and health. More importantly the health. It doesn't bother me in the least to pivot to FUWL.

But, since I run FE leads and they are targeted demographically to the FE market, the vast majority of people I meet with are going to be FE prospects.

Do I believe in the product? No, I care nothing about the product or what a company might call it. I care what the product does.