With the above in mind? How many will do that? My guess is 1-5% or less. FE coverage is forced savings. With out this those same folks will end up without coverage and the fam will suffer
Thoughts on selling over age 80
- Thread starter yabadabadoo1026
- Start date
- 16,903
For whoever asked about PreNeed at the funeral home being cheaper...
It might be. But it depends.
The monthly payments on a PreNeed for ages 81-85 are high. And based on a 3-year payment plan with most companies. You can get an approximate ballpark premium amount by dividing the initial face amount by 24. So a $10,000 initial face amount would be around $416 monthly.
BUT the main concern is in the payoff options. Over half the PreNeed insurance companies do not offer any decent early payoff options. So if they used one of those companies they would have to pay that $416 premium for the full 36 months if they live that long. $416 X 36=$14,976 total of payments. The death benefit on PreNeed policies increases each year that they live. But it won't increase by $5000 in three years on most of them. There are actually one or two that will because they guarantee their minimum death benefit to be equal to the amount of premium you have paid in.
The companies with the more favorable payoff options allow a 24-month same as cash conversion up to the 24th month and only add a $150 fee. That is a game changer on these type of cases. And by using those advantages was how I sold millions and millions of dollars of PreNeed funeral insurance. The consumer could never lose. And they could (and have) definitely come out ahead. Because they are insured while they are paying on it. With true guaranteed issue too. Someone can be in a nursing home, on hospice care, with terminal cancer, and full blown AIDS and can buy (or any family member can buy for them, with or without their knowledge) a policy that has a death benefit of return of premium plus 7% during the first 12-months but changes to 70% of the face amount at the 13th month. So that $10,000 policy pays a minimum of $7,000 regardless of health for months 13 through 24. Pays 100% from month 25 forward.
PreNeed can have huge advantages over FE in some situations but only if done correctly. And I would say over 75% of the cases out there are done incorrectly. By incorrectly I mean they could be done much more favorably to the family.
Plus if they can't afford the premium, it doesn't really matter anyway.
Now for the bad news. That $416 premium sale you just made on that 81-year old doesn't pay a huge commission. Commissions aren't based off of premiums. They are based off of age and face amounts. And ages 81 and above are charity work. Ages 51 to 75 are where PreNeed ages are paid well.
I could easily debate that PreNeed is the better option. And I could easily debate that FE is the better option. The devil is in the details.
My advice, sell what you have in your bag. Just make sure you have good tools in your bag to start with.
It might be. But it depends.
The monthly payments on a PreNeed for ages 81-85 are high. And based on a 3-year payment plan with most companies. You can get an approximate ballpark premium amount by dividing the initial face amount by 24. So a $10,000 initial face amount would be around $416 monthly.
BUT the main concern is in the payoff options. Over half the PreNeed insurance companies do not offer any decent early payoff options. So if they used one of those companies they would have to pay that $416 premium for the full 36 months if they live that long. $416 X 36=$14,976 total of payments. The death benefit on PreNeed policies increases each year that they live. But it won't increase by $5000 in three years on most of them. There are actually one or two that will because they guarantee their minimum death benefit to be equal to the amount of premium you have paid in.
The companies with the more favorable payoff options allow a 24-month same as cash conversion up to the 24th month and only add a $150 fee. That is a game changer on these type of cases. And by using those advantages was how I sold millions and millions of dollars of PreNeed funeral insurance. The consumer could never lose. And they could (and have) definitely come out ahead. Because they are insured while they are paying on it. With true guaranteed issue too. Someone can be in a nursing home, on hospice care, with terminal cancer, and full blown AIDS and can buy (or any family member can buy for them, with or without their knowledge) a policy that has a death benefit of return of premium plus 7% during the first 12-months but changes to 70% of the face amount at the 13th month. So that $10,000 policy pays a minimum of $7,000 regardless of health for months 13 through 24. Pays 100% from month 25 forward.
PreNeed can have huge advantages over FE in some situations but only if done correctly. And I would say over 75% of the cases out there are done incorrectly. By incorrectly I mean they could be done much more favorably to the family.
Plus if they can't afford the premium, it doesn't really matter anyway.
Now for the bad news. That $416 premium sale you just made on that 81-year old doesn't pay a huge commission. Commissions aren't based off of premiums. They are based off of age and face amounts. And ages 81 and above are charity work. Ages 51 to 75 are where PreNeed ages are paid well.
I could easily debate that PreNeed is the better option. And I could easily debate that FE is the better option. The devil is in the details.
My advice, sell what you have in your bag. Just make sure you have good tools in your bag to start with.
Last edited:
- 6,994
I think running into 80+ ages rural vs urban makes a difference.
I can count on 2 hands in the last six years where I sold a decent policy in a Section 202 senior housing center.
They either really didn't know what the card was about or can't afford the premiums.
But I usually start the converation with "Now you're not trying to make anybody rich. You're just trying to leave 1000 or two to your family right?"
I can count on 2 hands in the last six years where I sold a decent policy in a Section 202 senior housing center.
They either really didn't know what the card was about or can't afford the premiums.
But I usually start the converation with "Now you're not trying to make anybody rich. You're just trying to leave 1000 or two to your family right?"
- 3,993
I really don’t understand the anti-urban stance here. You guys are way off base with it.
- 19,025
I agree. The anti anywhere just shows a lack of knowledge.
There's certainly areas where I wouldn't want to sell and maybe even couldn't sell there. But someone is selling in every area. And liking it.
People are the same all across this country. They may talk different and may treat outsiders with disdain but they all have the same values and every area has people that you don't want as customers. But many that you would. Someone has those people as customers. Even if it's Alex Trebeck.
I have this one area in a town I work regularly that I hate working. This town would never be called urban but there's this one housing project that sits hard by the interstate that looks like it was ripped from New York and placed there. Fenced in basketball courts with all the rims and backboard bent but always crowded, day and night.
The police dept put a little sub station in one of the abandoned apts so they could have a presence there. They closed it after a couple years because it kept getting vandalized.
I hate when I get leads there. I run 16 counties over 3 states and that's the only place that's ever concerned me.
But when I do work there I find CL, LH and OA policies sold by agents. But more AARP, CP, MoO and Globe that they bought through the mail or by phone. So they are buyers.
If there was a local agent, maybe even one that came from those projects, they could rack up right there.
- 6,994
Well again, I'm no spring chicken here, and I am only sharing my experience. But when I run into 80+ year olds in senior apartments, this has been my experience:
-They usually smoke
-They're usually GI
-75%+ have NO insurance OR
-They have something that's 10-15 years old
Oh and they can't afford the premium for the $5000 minimum face with most carriers they could qualify for.
Now if they qualify, I've sold a lot of $1000-$3000 trans std policies to that age.
Now you move away from the project/Section 202 apartments and I do fine on that age bracket. But 75%+ of my prospects in that age bracket live in those types of places.
And 93% of statistics are made up
-They usually smoke
-They're usually GI
-75%+ have NO insurance OR
-They have something that's 10-15 years old
Oh and they can't afford the premium for the $5000 minimum face with most carriers they could qualify for.
Now if they qualify, I've sold a lot of $1000-$3000 trans std policies to that age.
Now you move away from the project/Section 202 apartments and I do fine on that age bracket. But 75%+ of my prospects in that age bracket live in those types of places.
And 93% of statistics are made up
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