Typical Premiums and Commissions For Final Expense

[GAMaster]

Here's a question for the experienced agents. I was in this field nearly 20 years ago, and now I'm coming back. Plan to specialize in the senior market. To get started, I was planning on focusing on final expense policies first. Since I've been out of this for some time, can anyone give me an idea of typical premiums and commissions on these products (dollar amounts)? I've found commission run 65% to 105%, depending on if I end up with someone that supplies the leads.

Thanks.

 

[thall]

Re: Final Expense

GAMaster, I'm back in the senior market after being gone for 25 yrs. ,would like to talk to you, will pm you, or am you whatever the correct term is. t hall

 

[HealthGuy]

Re: Final Expense

Why is this final expense market all the rage? I mean, isn't final expense just simplified issue little life policies? What is the big deal?

 

[The Gimp]

Re: Final Expense

Starting out, commissions for FE range from 100-110% depending on the carrier.

 

[MisterRandyWatson]

Re: Final Expense

For me, it seems like the average premium is between $40 and $50 per month. YMMV.

Most of my contracts are between 105% and 120%. FYC. If you prefer, you can get a 9-month advance with most of your contracts, but it's a scary way to live with the broke ass FE market.

If you prefer to be in a lead program, Asurea will offer a starting 100% contract and $29 leads. Your lead amount will increase and decrease depending upon your production. Equita's program is similar, except they start you off with lower contracts. Carolina Marketing has fixed 100% contracts and $25 dollar leads.

 

[GAMaster]

Re: Final Expense

Thanks Randy..that's very helpful.

 

[HealthGuy]

Re: Final Expense

100% plus commission...that is what my life carriers pay me. So again, what is the rage selling little life FE policies to seniors at $40 to $50 per month? Why does anybody get a hard on about this market specifically?

 

[MisterRandyWatson]

Re: Final Expense

100% plus commission...that is what my life carriers pay me. So again, what is the rage selling little life FE policies to seniors at $40 to $50 per month? Why does anybody get a hard on about this market specifically?

I like FE because it has a pretty good ROI for me on mail. I also like working with seniors because it's pretty easy to get referrals. It's not a terribly difficult close for the most part either.

It seems like it's a pretty easy entry into the insurance business for most people. From FE, you can transition pretty easily into Med Sups, annuities and larger WL cases once your referral chains weave themselves into more affluent prospects.

There are worse ways to make a living.

 

[HomeService]

Re: Final Expense

100% plus commission...that is what my life carriers pay me. So again, what is the rage selling little life FE policies to seniors at $40 to $50 per month? Why does anybody get a hard on about this market specifically?

I am used to selling the young folks- the small whole life policies, so when it became "final expense for seniors"- it kind of confused me as well. Sometime in the last decade or two- it became all the rage. I think it's because seniors are thinking of purchasing FE life- more so than a young person would. And also it is fairly easy to sell in combination with a med supp. As for "all the rage", I think some agents just naturally progress away from mortgage protection and health insurance sales- to FE. It's like the next big thing.

 

[policy doctor]

Re: Final Expense

Well another reason there is a market for this is many folks listened to the Dave Ramseys's. Clark Howards and Art Williams who proposed a theory.....that of buy term and invest the difference (in the stock market). Note I said theory, not a LAW.

Well the stock market capitulated for many, the term life ran out, and here they sit on oxygen and oxycotin and all they can afford now is $50/70 a month.