Why Do So Many Agents Want to Sell Final Expense?

[bluemarlin08]

I am slowly, but fighting, moving towards good reds from white.
However, tonight calls for stronger measures, a couple of shots of Grey Goose is helping with my attitude adjustment.
On another subject, dang, my emails are flooded with health insurance requests, looks like tomorrow I really have to work.
I must be carefull to not OD on this subject of work!

 

[SportsNut]

$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.

You are back trying to justify your original point, and they simply aren't justifiable. You have never been on a final expense appt... You talk about 3K prems... that isn't relative in the world of final exp sales. These are ppl that aren't going to qualify for a *fully u/w policy*, they do not wish to take a physical. It is NOT about "either-or" it is about this or nothing. The folks are scraping up 40 or 50 bucks per month to buy the FE policy... and many can't even do that. What kind of fully u/w UL do you have for someone 61 yo, on SSI, with emphysema...?

Ppl on fixed income don't buy 25K FE polcies. You show your ignorance of the subject by the mere suggestion that they do. You should give the avg consumer a little more credit than you do. Most of these poor saps know they are not far from the grave, have waited way too long to buy any life ins, (likely a lifestyle choice at the time) and their concern now is sticking someone with the cost and concern of their burial expense.

And what kind of ins are you selling someone in bad health...? Super-duper UL...? Decent rates...? As they say on ESPN... "COME ON MAN"

Do yourself a favor... before you post another word about FE... buy 50 leads, go run those appts and come back and post the results. You might be able to sell one fully u/w and placed UL, but my bet is none... out of those 50 leads. But... You can sell some FE policies, because that is what they need, can barely afford and is all they qualify for, as a general rule.

FE candidates are not those folks who are easily insurable and have resources. Got it...?

 

[bluemarlin08]

Sports Nut, you the man, we need to meet.

 

[Guest]

Bravo to SportsNut and NKA. This has been a good discussion for me. There is no doubt that there may be better policies to be had for certain seniors that are in good health, will submit to any exam necessary, and have the financial means to purchase them.

However, that is the exception and not the norm. Approximately 40-50% of the population in the US is without life insurance of any kind. Even if they have some savings it may not be accessible at time of need. With an FE policy the funeral home will use the policy for the expenses and pay the remainder to the beneficiary.

If you have never been to a funeral where a hat was passed to help pay for it then how can you understand the basic need that is there? Oftentime when I talk to a prospect the first question is: Who is going to pay when you die. That is the nuts and bolts of it. That is what they know they need help with. Some ignore the issue and have to be told about that. Oftentimes, the men will say to just dump them in a hole somewhere when they die. The women usually take care of the situation and the men grudgingly go along.

So you can sit in the ivory tower and throw stones all day but if you haven't been in my world and yet want to call me lazy then go right ahead. I have been to the funerals and delivered the claim checks and I sleep very well at night knowing that I have provided a valuable service to my clients.

 

[Todd King]

Well said NKA, SportsNut and Randy! It's so funny how some that have responded to this post don't actually work the senior market and by the things they say you can tell it! They have no experience yet they want to debate it to the hilt!

 

[dgoldenz]

The original intention of the post was not to say that FE does not have its place - if someone doesn't want to bother with the hassle of an underwritten policy, that's their choice. If they only want $5k or $10k, they probably aren't going to find a fully underwritten company to offer it to them, so again, FE may be best. However, I can't tell you how many calls we've had to leads in the 65-75 age range who have been quoted $3-4k/year for $25k in benefits and were surprised to learn they could get 4-8x that much coverage if they just took an exam and filled out an app. The area we live in is pretty well off, so maybe that is why I'm not going out on appointments to people on fixed income living in a $100k house. That is not to say that we do not have clients in that situation who found the policies we got them better than what any FE agent/company was offering.

From reading many of threads on this board, it seems that there are many agents who sell medicare just to get a foot in the door so they can sell FE even though they sell no other life products. This, in my eyes, is doing the client a big dis-service. I have seen very few posts saying "I sell term/UL/WL, but would be interested in adding FE as another tool on my belt for those who can't get underwritten or only want $10k in coverage"

 

[Newby]

Bravo to SportsNut and NKA. This has been a good discussion for me. There is no doubt that there may be better policies to be had for certain seniors that are in good health, will submit to any exam necessary, and have the financial means to purchase them.

However, that is the exception and not the norm. Approximately 40-50% of the population in the US is without life insurance of any kind. Even if they have some savings it may not be accessible at time of need. With an FE policy the funeral home will use the policy for the expenses and pay the remainder to the beneficiary.

If you have never been to a funeral where a hat was passed to help pay for it then how can you understand the basic need that is there? Oftentime when I talk to a prospect the first question is: Who is going to pay when you die. That is the nuts and bolts of it. That is what they know they need help with. Some ignore the issue and have to be told about that. Oftentimes, the men will say to just dump them in a hole somewhere when they die. The women usually take care of the situation and the men grudgingly go along.

So you can sit in the ivory tower and throw stones all day but if you haven't been in my world and yet want to call me lazy then go right ahead. I have been to the funerals and delivered the claim checks and I sleep very well at night knowing that I have provided a valuable service to my clients.

You are correct! I work directly with funeral homes and you wouldn't believe the number of families that completely believe the funeral homes will just let them set up a payment plan after the funeral. In the old days, maybe but not today because people don't even make their own car payments. Funeral homes can't collect if they extend credit.

Even fairly wealthy families don't usually have things set up for the kids to have money in time for a funeral. A small final expense policy or a funeral pre-need policy PREVENTS leaving a financial burden on your spouse and kids.

 

[SportsNut]

If you have never been to a funeral where a hat was passed to help pay for it then how can you understand the basic need that is there?

Well, if the OP attended that funeral, he could contribute that *declined UL app* to the hat...

The critic needs to get out in those houses and inhale the aroma of stale cigarettes, and fried bacon and taters lingering from last month... then pitch ole Zeke on that 180 mo UL prem. Whaddya think Zeke will have to say to Mom about dat...?

 

[dgoldenz]

Well, if the OP attended that funeral, he could contribute that *declined UL app* to the hat...

The critic needs to get out in those houses and inhale the aroma of stale cigarettes, and fried bacon and taters lingering from last month... then pitch ole Zeke on that 180 mo UL prem. Whaddya think Zeke will have to say to Mom about dat...?

What is the average FE premium? It seems most posts I've read talk about $100-150/month depending on coverage amount for $10-15k. UL apps shouldn't be declined if the case is shopped ahead of time....if there is no feasible underwritten program, then may be the time to go to FE. It seems to me that most agents who want to sell FE just skip that entire step and go right for the instant approval-app.

Second question to those who sell FE - are there any A+ rated FE carriers other than Transamerica?

 

[Todd King]

What is the average FE premium? It seems most posts I've read talk about $100-150/month depending on coverage amount for $10-15k. UL apps shouldn't be declined if the case is shopped ahead of time....if there is no feasible underwritten program, then may be the time to go to FE. It seems to me that most agents who want to sell FE just skip that entire step and go right for the instant approval-app.

Second question to those who sell FE - are there any A+ rated FE carriers other than Transamerica?

$100-150/month huh? You've mis-informed yourself on this one. Go and do some research and when you know what you're talking about come back and see us. Maybe this is the reason you keep coming back trying to prove your point.