Welcome to the Forum, Edward. Hope to correspond with you more in the future. When your grandmother passed, I assume there was quite a bit of cash value, considering she paid more into the policy than the beneficiary received. Keep in mind that as the cash value increase, although it seems like the premium is paying for the original death benefit. In reality, the premium is paying for the difference between the current cash value and death benefit. This means her cost is limited to the amount the insurance company has at risk. Oftentimes, we confuse Premium with Cost of Insurance (or amount at risk.) Therefore, the longer she paid, more and more of her premium dollars were being allocated towards the cash value. Did you consider that a possibility at the time, or not? Hope that makes you feel somewhat better about it.
Is FE worth it?
- Thread starter XYZ99qq
- Start date
- 5,048
But how many others her age made only a few payments or only paid for handful of years. I am not a fan of FE life overall, but I find it better than nothing for the majority of people that currently have none or no assets to cover final needs & wishes.
also, I bet she paid a lot more into auto & home insurance than she received back too. Always wondered why we as consumers & even agents (including myself) look at a life policy illustration & see someone will have paid more in than the death benefit in say their 90s but we don't look at auto, home or business insurance through that same lens
Edwardfin
Expert
- 50
First thanks for the response. I started in the business in 2007 so I understand why this was done what I think about is what if my grandmother came across an agent like me? She would have been in a far better place as far as outcome. This fuels me in this business.
Edwardfin
Expert
- 50
I agree wholeheartedly I also sell final expense to the clients that need it. I guess to help you understand that she was not a final expense client when she purchased the coverage.
That's a very good point and observation. The argument could be made that Auto insurance is required by law. The same cannot be said for homeowners or business insurance.
- 5,048
actually, lenders require the Homeowners & the business insurance. also, some business insurance like Work Comp & BAP are also required by law in addition to lenders & people contracting the business requiring it
- 7,012
Really? I love Prosperity, but not for telesales. That PHI and Eapp process is brutal.
Edward A Taylor
New Member
The FE market is all in how you approach it. Our company telemarketing crew, finds the customer and transfers that person to the Agent, known as a warm transfer! When I speak to a customer, I want that person to understand fully, who I am and that I am here to help them if they are interested in Life Insurance. I already know some things about them, but want to learn more about their Life, like how do they spend their time, their wants, needs and desires. I want to know if they have a family near by and how close they are to each other! I want to know their previous employment, if any! Basically; I get to know them and what makes them happy or sad. Then as I get to know them, I learn about their illness, prescription drugs, in the hospital lately and why! Also; their living arrangements etc. Whether; they control their finances and who they would like to take care of things if something were to happen. It is all about them, not about me, the Agent. If you take this approach, then you will be more successful and retain more customers on the books. One last thing; Never oversell or push your customer, and you and your customer will be happy!
Tony Hardwick
New Member
- 15
As a newbie, I do think FE is worth it. From the customer's standpoint, if they don't want to leave their family in a mountain of debt, then yes. As a producer, only speaking for myself, the commission is secondary to providing the service.
Duane Freeman
Expert
- 86
It is a little annoying because they get asked the same question twice, but I feel like if they are serious they won't mind and better deal with it hahaha
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