The Perfect Final Expense Insurance Product...

[theinsuranceman]

perfect final expense product will require carriers to be able to find someplace to invest money. The way things are headed, most products will require major overall soon that will impact pricing, commissions & performance if things dont get turned around.

our lists as agents & consumers wont matter a whole lot

So, for me, I would say #1 feature is that the carrier can get decent returns & interest rates. without that, none of our wish lists is possible.

I want the carrier to be profitable. Otherwise nothing else will matter.

 

[myinsurebiz]

The three-year commission is a bit too aggressive for the real world. That said, I think a 50-50-50 commission, as earned, would bring in a very solid book of business for a company. Perhaps a 5% lifetime renewal. Both the company and the agent would do well with it. Agents would be discouraged from selling bad business (be it bad health, or people who aren't responsible to pay their bills), as the money would be in selling healthy customers. Agent would build a very solid and stable income. Also, the company would have positive premium cash flow from the first day, rather than paying a 100%+ first-year commission; so, if the customer drops the coverage -- or just plain drops dead -- the company would have at least kept a few dollars in premium to cover the overhead.

Most of the Agents paying for Leads can't survive without an advance.

I wouldn't even worry about a 5% renewal. Most agents aren't around for year 4+ and if they are - their book wouldn't produce squat at 5% . . .

Just do the 100%, 50% and 50% . . .

 

[shonceman]

my added - 8) OK for remote selling.


#5) I agree. Even if the standard was just raised to $50,000 for the FE industry. $35,000 is OK, but $25,000 as the max is crazy. Maybe that was OK 30 years ago but we were selling $5,000 burial plans back then. Especially if you are selling SIWL (T4+) to 40 and 50-year-olds.

When FE was first a thing back in the ‘90’s the max was often just $15k, even less for older prospects. But I agree, it’s definitely about time to raise the max again. Part of my sales talk is about how funeral expenses double every 14 to 15 years. The average funeral where I live is $15-17k. 30 years from now $50k will barely be enough for an average funeral.

 

[theinsuranceman]

When FE was first a thing back in the ‘90’s the max was often just $15k, even less for older prospects. But I agree, it’s definitely about time to raise the max again. Part of my sales talk is about how funeral expenses double every 14 to 15 years. The average funeral where I live is $15-17k. 30 years from now $50k will barely be enough for an average funeral.

That's why cremations are becoming more popular the last few years.

 

[WinoBlues]

That's why cremations are becoming more popular the last few years.

Even with cremation , the final expense, when you die, talk could easily come up with higher needs to be covered. Transition money being one that the beneficiary seems to care more about.

When someone says I just need to cover a cremation. That is a base conversation of $5,000 - $10,000.

 

[Life Hawk]

 

[Life Hawk]

 

[Life Hawk]

The issue is not commissions or lead costs, the issue is this industry happens to be loaded with lazy and useless agents

Hmm...

If I check out your offer can I become one of your lazy and useless agents, I'd do my best. As a matter of fact I'm on my **s right now.

 

[Life Hawk]

Too bad we can't put liens on agents cars before they on boarded.

Have you though of kidnapping their pets?

 

[Rob300L]

When FE was first a thing back in the ‘90’s the max was often just $15k, even less for older prospects. But I agree, it’s definitely about time to raise the max again. Part of my sales talk is about how funeral expenses double every 14 to 15 years. The average funeral where I live is $15-17k. 30 years from now $50k will barely be enough for an average funeral.

A reasonable solution to the inflation factor is for companies to offer participating final expense policies. Only one company I know of does, and it's rates are out the roof. Say a company like Foresters, whose mainline products are participating (with solid dividends), it could sell final expense that is also participating. That would probably be the ultimate #1 feature. "Yes ma'am, our rates are $4/month higher; however, this policy is eligible for dividends; let me show you how paid-up additions work . . . . "