Thinking About Getting into Pre-need

[Cenla Agent]

I'm thinking of getting into the pre-need market and have been in contact with SNL and FDLIC. SNL is recruiting here but FDLIC doesn't presently have any openings i.e. no current openings to sell out of affiliated funeral homes.

I seem to recall Newby posting that if one is interested in getting into the Pre-need market that it is a good idea to contact some of the major players. Other than the ones I named above, the others I know of are NGL, Forethought and Homesteaders. Are there any that I've missed? (I know there are older threads on this, but things change and IIRC some if not all of them are a few years old.)

Also, what should one look for when considering getting into this market with regard to the carrier, the contract, the funeral home and perhaps other factors?

 

[Newby]

I'm thinking of getting into the pre-need market and have been in contact with SNL and FDLIC. SNL is recruiting here but FDLIC doesn't presently have any openings i.e. no current openings to sell out of affiliated funeral homes.

I seem to recall Newby posting that if one is interested in getting into the Pre-need market that it is a good idea to contact some of the major players. Other than the ones I named above, the others I know of are NGL, Forethought and Homesteaders. Are there any that I've missed? (I know there are older threads on this, but things change and IIRC some if not all of them are a few years old.)

Also, what should one look for when considering getting into this market with regard to the carrier, the contract, the funeral home and perhaps other factors?

There are a lot of good regional companies in preneed. Cincinnati Equitable, Atlantic Coast, etc.

Physicians Mutual has a new preneed division that works closely with the Outlook Group.

 

[Cenla Agent]

Physicians Mutual has a new preneed division that works closely with the Outlook Group.

Interesting. Physicians Mutual doesn't have the name recognition it once did, but it is much more recognizable than any other preneed company that I know of. I wonder if they are selling that on the TV the way they do with other products.

 

[Newby]

Interesting. Physicians Mutual doesn't have the name recognition it once did, but it is much more recognizable than any other preneed company that I know of. I wonder if they are selling that on the TV the way they do with other products.

No. They are working with a 3rd party marketer named Outlook group.

 

[Westcoastnative]

Newby, have you ever heard of company named Worldwide Family out of Los Angeles?

 

[Newby]

Newby, have you ever heard of company named Worldwide Family out of Los Angeles?

Never heard of them. I assume this is them Worldwide Family: About Us

Looks like a typical 3rd party marketer for preneed. I assume they are fine. There are dozens if not hundreds of those all over the country.

Your experience with them will be a combination of the marketer, the insurance companies they sell and most importantly the exact funeral home you sell for.

Preneed can be an excellent place to be for the right person. It wouldn't be a good fit for most.

I just learned of an excellent preneed position that needs filled in Indiana a little north east of Indianapolis if anyone is interested in that area. To be hired you would have to focus exclusively on those sales and give up anything else. You have to be professional and look good in a suit. Definite high income potential.

 

[HomeService]

I would like to learn more about this as well. I run into folks out there every now and then with pre-need plans, but it seems like they are usually for 5000 or something, not enough coverage. Well, this one guy I saw one time had one for 5K. other people I've seen have them for like 7,500 and such. I guess the good thing is they lock the price down for the funeral so it does not go up with inflation.

 

[Newby]

I would like to learn more about this as well. I run into folks out there every now and then with pre-need plans, but it seems like they are usually for 5000 or something, not enough coverage. Well, this one guy I saw one time had one for 5K. other people I've seen have them for like 7,500 and such. I guess the good thing is they lock the price down for the funeral so it does not go up with inflation.

Preneed policies can be for any amount between $1,000 to $25,000. usually set to pay in full in 5-years or 10-years. Guarantees the funeral price against inflation.

More affluent people buy them than the typical FE customer.

 

[HomeService]

Preneed policies can be for any amount between $1,000 to $25,000. usually set to pay in full in 5-years or 10-years. Guarantees the funeral price against inflation.

More affluent people buy them than the typical FE customer.

Really? This guy I'm speaking of with the 5,000 plan was not rich at all, he was quite the opposite. I wonder if it was bank draft? I forgot to ask him.

 

[Newby]

Really? This guy I'm speaking of with the 5,000 plan was not rich at all, he was quite the opposite. I wonder if it was bank draft? I forgot to ask him.

There is definitely cross over. I've sold FE to very wealthy people before and Preneed to very impoverished. But the easier way to go is to sell FE to poor people and Preneed to the wealthy.

Think about it. Preneed appeals to people who want their funeral paid off completely. They don't want a lifetime payment. They also have to understand inflation at least a little bit to see the advantage of Preneed.

Final expense prospects are lowest monthly payment buyers. They don't question signing up for a payment that lasts the rest of their life. Some of them would probably sign up for lifetime car payments if it was offered to them.

It's two different mentalities. One group knows how to handle money and they usually have acquired wealth. The other group never figured money out and has never accumulated much.

There is some cross over of sales but it's much easier to sell the right product to the right prospect.