Looking into Selling FE.

[StarterAgentKG]

hello new to the business was looking into selling Final Expense. I have met with several General Agents and Managers at companies that sell different lines. Got told by the (one was a primerica agent) that FE will fizzle out because the newer generation is figureing out if you just save $100/ month for a couple of years you can afford funeral expenses. Another one told me that FE is too saturated with agents that the money is in it for the MGAs and IMOs, which I’ll never get appointed as because I have minimal sales and management experience.

Now I know how business works, whole life agents will say term life is the wrong one to sell, Term life agents will say vice versa and say there’s no money in FE and FE people will say that business is booming and that Term is fizzling out.

Just curious what everyone’s thoughts were.

 

[fed up]

In the last few years I have buried my brother, my father, my father in law, and my mother. 1 did not have any insurance, the other 3 had small death policies. Each funeral cost between 10K and 15K. If they had only saved 100 per month for over 10 years just for burial expenses they would not have needed death policies. Each had a plot already paid for by the way so that saved 3000-5000 on top of the funeral cost. I hope my kids (the newer generation) can save for their costs if Primerica is correct. But they each have 250K policies put in place by me.

 

[Allines]

The buy term invest the difference song and dance still raises it's ugly head. I still remember John Savage saying in a speech back in the 80's " people will buy term but they will spend the difference" and that is exactly what they do.

 

[rousemark]

In the last few years I have buried my brother, my father, my father in law, and my mother. 1 did not have any insurance, the other 3 had small death policies. Each funeral cost between 10K and 15K. If they had only saved 100 per month for over 10 years just for burial expenses they would not have needed death policies. Each had a plot already paid for by the way so that saved 3000-5000 on top of the funeral cost. I hope my kids (the newer generation) can save for their costs if Primerica is correct. But they each have 250K policies put in place by me.

If the generation you just buried didn't listen to all that sage advice, why do you think the newer generation will? BTITD has been around almost since the beginning of the industry and was really popularized in the 80s by AL Williams (now Primerica) Those are are the folks we sell FE to today. The ones that are hearing that pitch today will be the FE prospects 30 years from now. .

 

[Thedude]

I’m cracking up that someone said with a straight face that younger generations are figuring out you can save 100 a month for years to pay for their funeral. Whoever said has no idea what they are talking about.

 

[Allines]

Amen

 

[Thedude]

And no, it’s not term vs fe. That person was trying to recruit you. Both term and whole life have uses.

The market is definitely more saturated but if you are good you make it.

 

[DHK]

Now I know how business works, whole life agents will say term life is the wrong one to sell, Term life agents will say vice versa and say there’s no money in FE and FE people will say that business is booming and that Term is fizzling out.

Just curious what everyone’s thoughts were.

My thought is to learn how to be a great professional agent who:
1) Serves their clients - not just what they need, but what they want. Teach them to WANT life insurance!

2) Challenges client's pre-conceived ideas. Clients may *think* they know everything about insurance, but they usually don't. It takes a knowledgeable agent to help a client understand their real choices... but still be okay with what the client chooses.

3) Never be a "term only", "whole life only", or "IUL only" agent. Understand these policies and how they work, but be a professional first. Serve your clients with whatever policy fits their situation best.

4) It's a MYTH that those who buy Whole Life do so because otherwise they would "spend the difference". Savings is savings. If they'd quit a voluntary savings plan, they'd also quit a whole life plan. In either case, money is leaving the checking account and going somewhere else where it's not to be touched (at least not right away).

My philosophy is this: You can lead a horse to water, but you can't make him drink. But you can salt the horse's oats to make him WANT to drink.

Be an oat salter.

 

[rousemark]

4) It's a MYTH that those who buy Whole Life do so because otherwise they would "spend the difference". Savings is savings. If they'd quit a voluntary savings plan, they'd also quit a whole life plan. In either case, money is leaving the checking account and going somewhere else where it's not to be touched (at least not right away).

David, in many cases it is not that they quit the voluntary savings plan, it is that they spend out of it. Some people are much more likely to access savings than raid the life insurance cash values.. Many years ago, I worked in a factory that had a company credit union.. I had an automatic withdrawal coming out of my check going into savings. When I quit after working there 5 years, I had less than $200 in savings and owed the credit union $3K.. I took money out and borrow money to "invest' in new cars, vacations, refrigerators, stoves, etc. I also had a WL policy but I didn't raid the CV because it was not as easy to access.

 

[Newby]

FE is going to run out of people to sell to. Just about everyone has bought by now.

At least that’s what the fear mongers told me back in 1996.