Looking into Selling FE.

[HoosierLife]

The more I live life, the more I realize a vast majority of people, in general, will one day become Final Expense prospects. Including agents..

 

[Markthebroker]

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.

My thoughts are that you have somehow figured out how to get advice from some of the daftest people on earth.

 

[DHK]

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.

Very true. But not to contradict you, but it's just as easy to stop payments on a policy or cancel a policy as well. Or stop 401(k) plan contributions, or any other auto-debit activity.

Still fits to the John Savage "Tin Can" story of human behavioral finance:

 

[rousemark]

Very true. But not to contradict you, but it's just as easy to stop payments on a policy or cancel a policy as well. Or stop 401(k) plan contributions, or any other auto-debit activity.

Still fits to the John Savage "Tin Can" story of human behavioral finance:

Savage reminds me of Neil Cavuto in appearance... I think he just said what I said only better! True you can stop the payment on any of them ... but it was a little harder to gain access to the CV of the insurance policy.. At the credit union, all I had to do was write a check.. With the life policy, I would have to mail in a form requesting the CV or loan and then wait for the company to send me a check.. Too much hassle to fool with..

 

[Jaymon]

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.

I think he'll run out of family and friends, before everyone saves a $100.00 month.

 

[Rob Lion]

Personally, I was not very successful in FE i didn't like it so my work ethic wasn't what it should have been then i started selling over the phone and everything got better. I sell Term and FE over the phone depending on the situation and i feel you shouldn't limit yourself to one "Niche" you will never run out of term or fe prospects. Also, you're delusional i'm apart of the younger generation (20 year old) people my age are too busy complaining about minimum wage, there being 72 different genders , and costs of education to even get a job that pays there bills let alone save 100 dollars a month.

 

[suranceman]

Personally, I was not very successful in FE i didn't like it so my work ethic wasn't what it should have been then i started selling over the phone and everything got better. I sell Term and FE over the phone depending on the situation and i feel you shouldn't limit yourself to one "Niche" you will never run out of term or fe prospects. Also, you're delusional i'm apart of the younger generation (20 year old) people my age are too busy complaining about minimum wage, there being 72 different genders , and costs of education to even get a job that pays there bills let alone save 100 dollars a month.

I think millennials will be the biggest group of FE's ever. The FE business isn't going anywhere.

 

[rousemark]

Personally, I was not very successful in FE i didn't like it so my work ethic wasn't what it should have been then i started selling over the phone and everything got better. I sell Term and FE over the phone depending on the situation and i feel you shouldn't limit yourself to one "Niche" you will never run out of term or fe prospects. Also, you're delusional i'm apart of the younger generation (20 year old) people my age are too busy complaining about minimum wage, there being 72 different genders , and costs of education to even get a job that pays there bills let alone save 100 dollars a month.

When I started on the debit in 1971, I worried about running out of people to see.. Now all these years later I realize that if I had stayed on that debit and had only worked within the boundaries of that debit, I still would have people I had not talked to. People move out and others move in, there are new births, new graduates, new retirees every year..

 

[Allen Trent]

Non-savers definitely have an issue. However, the modest savers that accumulate a nice nest egg & even have some permanent life insurance many times are required to empty all those funds and CV from their life policies as most spend the last 3months to 5 years in a nursing home at end of life. Have seen many clients have to cash out their WL policies & take the $10k to the funeral home to buy a prepaid funeral that is protected in the Medicaid Spendown, but CV of life policies is not. So, they lose the leveraged death benefit that was in the policy & only get the CV out in the spend down requirement.

What took some 3 to 4 decades to squirrel away can evaporate very quickly at 7k-10k per month paying for skilled nursing home care.

 

[myinsurebiz]

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.

What type of policies?