Why Do So Many Agents Want to Sell Final Expense?

[Jeff]

If a client wants 25K of permanent coverage a GUL is a great option to get them the most coverage for the lowest cost. (assuming decent health). Less than 25k and they are looking at a fe type policy. When I ask if they are more concerned about cash value or death benefit, they always go for the death benefit.
Bottom line..show them all options for the face amount needed and let them decide. GUL, FE, Non med...it's their choice.

 

[nka245]

Firstly if they specifically say that they don't want anyone coming out to take their blood, their urine, or ask them any questions, I am not going to force them to do it... and it is a lot of them. The majority of them are ill and just want something to cover their funeral.

How is someone on a fixed income with a ridiculous yearly increase in SS benefits in an ever increasingly crappy economy with inflation that is far more than their piddly SSN increase going to choose between a life insurance policy and food on the table in a bad month? What happens if they can't pay their policy for a month or two a year and lose interest in the policy? What happens to that so called guaranteed no lapse then? A small loss in interest can be sufficient to invalidate the long-term, no-lapse guarantee.
Should they feel as if what they thought they were gaining a cash value in is nothing more than an empty capsule that could literally be of no value if they can't pay it on time a few times a year?
Yes, it is up to them but an agent has an obligation to do what is best for their client.


Of course I tell them, if it is in their best interest and pertains to their situation, to get a medical exam done. I am not a proponent of selling the easiest, highest commissioned policy.
This has nothing to do with it being a quicker issue or getting paid more.
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If a client wants 25K of permanent coverage a GUL is a great option to get them the most coverage for the lowest cost. (assuming decent health). Less than 25k and they are looking at a fe type policy. When I ask if they are more concerned about cash value or death benefit, they always go for the death benefit.
Bottom line..show them all options for the face amount needed and let them decide. GUL, FE, Non med...it's their choice.

Sorry but I don't run a Sams club of insurance.
My clients trust me and ask of my professional opinion so they can make a decision. Ultimately it is their decision but to pretend that I have no role in them choosing is ludicrous and I wouldn't suggest to my client, who I know is ill and won't get approved for a conventional policy to try to get it anyway.
Yeah, let's all bait and switch. No, thanks. My persistency rate stays consistently above 85%, even with all of the term policies I write, for a reason. I don't screw with my clients.
I teach my agents the same. Do it right the first time and keep your customers' loyalty.
It only takes 5 minutes to call for a risk assessment. Besides that, often you just KNOW when someone won't qualify from experience.

So, I know how to do risk assessments. I investigate all options for my clients before presenting them with the options AND my opinion and I am telling you that UL doesn't work for a large number of these people and FE gives them some peace of mind.

 

[Mega producer]

After reading all the posts, now I understand why there are so many broke insurance agents.

If you are very successful selling $50k-$100k UL policies to people with bad health and on fixed income, YOU"RE THE MAN !!!!

 

[dgoldenz]

After reading all the posts, now I understand why there are so many broke insurance agents.

If you are very successful selling $50k-$100k UL policies to people with bad health and on fixed income, YOU"RE THE MAN !!!!

$50-100k UL policies to people with average/bad health that are older can easily be $2-5k/year. I'd say that's a pretty good commission.

NKA - Would you sell someone on fixed income a $25k FE policy when they could get a $25k UL for 50-70% less? Several carriers offer Table D to Standard on UL policies, so even those in not-so-great health can get decent rates. Also, not everyone on a fixed income has $0 in savings. I just spoke with a 65-year-old male today in good health (likely preferred NS rate) and he said he has been getting bombarded with calls from fly-by-night carriers offering GI and simplified issue policies at extremely high prices. This was a month old lead and he was quite surprised to learn that if he took an exam and answered a few questions, he could get 5-10x the coverage for half the price. We are writing him and his wife for $100k UL each at a total premium of ~$3000 per year. The other offers for the same premium were $15-25k each. Pretty sick if you ask me.

 

[nka245]

$50-100k UL policies to people with average/bad health that are older can easily be $2-5k/year. I'd say that's a pretty good commission.

NKA - Would you sell someone on fixed income a $25k FE policy when they could get a $25k UL for 50-70% less? Several carriers offer Table D to Standard on UL policies, so even those in not-so-great health can get decent rates. Also, not everyone on a fixed income has $0 in savings. I just spoke with a 65-year-old male today in good health (likely preferred NS rate) and he said he has been getting bombarded with calls from fly-by-night carriers offering GI and simplified issue policies at extremely high prices. This was a month old lead and he was quite surprised to learn that if he took an exam and answered a few questions, he could get 5-10x the coverage for half the price. We are writing him and his wife for $100k UL each at a total premium of ~$3000 per year. The other offers for the same premium were $15-25k each. Pretty sick if you ask me.

No, I wouldn't but if you read my posts you would have seen that.
I don't just look at someone's age and see that they are a senior citizen and think to myself, woooo, let's get this person an FE policy. Come on now! I think I have been more than articulate in explaining how I approach, work with, and take care of my customers.
My point was that there is a place for FE.
I know there are agents out there that are selling FE when they shouldn't just like there are agents selling MP when they shouldn't. I didn't try to debate that with you.
My point, again, just for clarification, is that there is a place for FE. There are a lot of people who want and need that type of policy.
It goes without saying that not everyone on a fixed income is broke. I'm aware of that. There are far more that are than aren't, though where I am at. Look at the demographics of the agents who write more FE... I work a lot of Louisiana... need I say more?

 

[bluemarlin08]

I guess that puts me at a loss for words.

 

[SportsNut]

I guess that puts me at a loss for words.

Come on Ned, you are an insurance salesman, and we know ins salesman are NEVER at a loss for words.

 

[nka245]

Come on Ned, you are an insurance salesman, and we know ins salesman are NEVER at a loss for words.

Seriously, come on! I was getting excited about actually having some people to debate with. You can't give up that easy! You must have something more to say! It's all in good fun, though. We can all learn off of each other.

 

[bluemarlin08]

Hey, cut me some slack! I've been at Boone, NC with family and friends for the past week and my mind is scrambled. In my old age it is so hard to deal with drama. Sorry if my posts seem obtrusive, haven't had enough wine.

 

[nka245]

Hey, cut me some slack! I've been at Boone, NC with family and friends for the past week and my mind is scrambled. In my old age it is so hard to deal with drama. Sorry if my posts seem obtrusive, haven't had enough wine.

Please tell me you aren't drinking white wine... times like those call for a good cabernet.