Why Do So Many Agents Want to Sell Final Expense?

[pfs.bjohnson]

"Call it what you will but there is a HUGE market for the new simplified issue FE products and I for one, like others, am going to be taking advantage of it."

He is getting a big dose of SOMEBODY's Kool-Aid. I've been selling it for over 13-years and it was around LONG before I came along.

Guys, I know FE whole life has been around since before the depression. I don't know exactly how long the simplified graded WL has been around, not too long though, I'm pretty sure. For someone who has owned multiple businesses in real estate and finance and seen those industries go south, to find a niche in the life insurance industry where you can earn a very comfortable living like I was use to, work for yourself (which I've always done) and still have quality time to spend with your family, which I didn't have with the other endeavors by the way, is really cool IMO. Do I want to be an insurance salesman until I'm 70, of course not. It's just a vehicle.
Yeah, I drank the NAA kool aid for 1.5 years. I worked my butt off to make nothing because of my contract and recycled leads. Now that I've fixed the contract thing (highest available) and am on par with paying for own leads, problem solved. Not to mention, selling FE is much more profitable than selling term life insurance due to less moving parts. It's about a work ethic as mentioned many times on this forum. You work, you get paid. You don't, you don't. A lot of life agents can't say the samething. They work and they still don't get paid cuz of the system their in. The bottom line is somebody is gettin paid in this industry, I might as well get my small piece.

 

[dgoldenz]

Guys, I know FE whole life has been around since before the depression. I don't know exactly how long the simplified graded WL has been around, not too long though, I'm pretty sure. For someone who has owned multiple businesses in real estate and finance and seen those industries go south, to find a niche in the life insurance industry where you can earn a very comfortable living like I was use to, work for yourself (which I've always done) and still have quality time to spend with your family, which I didn't have with the other endeavors by the way, is really cool IMO. Do I want to be an insurance salesman until I'm 70, of course not. It's just a vehicle.
Yeah, I drank the NAA kool aid for 1.5 years. I worked my butt off to make nothing because of my contract and recycled leads. Now that I've fixed the contract thing (highest available) and am on par with paying for own leads, problem solved. Not to mention, selling FE is much more profitable than selling term life insurance due to less moving parts. It's about a work ethic as mentioned many times on this forum. You work, you get paid. You don't, you don't. A lot of life agents can't say the samething. They work and they still don't get paid cuz of the system their in. The bottom line is somebody is gettin paid in this industry, I might as well get my small piece.

I would be curious to see the number of MDRT/court of the table/top of the table agents sell FE versus how many sell underwritten term/UL/WL. There's a limit to what you can make on a single FE sale, there is no limit to what you can make with term/UL/WL.

 

[Mark]

I use to be a "TERM JUNKIE".... I loved chasing those new home owners and middle age clients....I can't wait until the market changes back...

F.E. was never my first choice of what I wanted to sell. I don't mind selling it, but I love selling younger clients.

 

[Newby]

I would be curious to see the number of MDRT/court of the table/top of the table agents sell FE versus how many sell underwritten term/UL/WL. There's a limit to what you can make on a single FE sale, there is no limit to what you can make with term/UL/WL.

I don't think most final expense or funeral Preneed agents even know MDRT exists. I qualified for 10 years before I ever heard of it.
I know several who qualify for Court of the Table and don't join. Not everyone has MDRT as a goal.
But the answer is: there are a whole lot of them who qualify. FE agents are spending $30,000 to $40,000 per year on leads. They can't do that too long without selling something.

 

[Bitnis]

bjohnson what are you doing for leads now?

 

[imnfni]

One issue I have discovered to is that the smaller face amount on a fixed pay period seems to suit the aging client as well. The idea of a perpetual payment while living on a fixed income, just to leave their beneficiaries money to spend, isn't a real hot button for many. I find it easy to sell and easy for me to live with, when I can help them get a need covered with a product that will be paid up in 10, 12, or 15 years.

 

[pfs.bjohnson]

One issue I have discovered to is that the smaller face amount on a fixed pay period seems to suit the aging client as well. The idea of a perpetual payment while living on a fixed income, just to leave their beneficiaries money to spend, isn't a real hot button for many. I find it easy to sell and easy for me to live with, when I can help them get a need covered with a product that will be paid up in 10, 12, or 15 years.

If your able to make it fit in the budget, I would agree with you totally. Any suggestions for good "paid up" carriers?
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bjohnson what are you doing for leads now?

I've started with direct mail. I am experimenting with different telemarketing sources. Direct mail leaves a huge untapped market for the ones who do not respond. My goal is to get to the point to where I can have 25-30 leads coming in per week with the hope eventually that the majority of those would be from telemarketing or from another source.
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I would be curious to see the number of MDRT/court of the table/top of the table agents sell FE versus how many sell underwritten term/UL/WL. There's a limit to what you can make on a single FE sale, there is no limit to what you can make with term/UL/WL.

To be honest with you, I'm not really into designations or salesclubs. I'm just into having the ability to make $100K++ from selling 3-4 day per week. Also building a sales team to increase that income even more.

 

[scagnt83]

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To be honest with you, I'm not really into designations or salesclubs. I'm just into having the ability to make $100K++ from selling 3-4 day per week. Also building a sales team to increase that income even more.

Im not a fan of MDRT and that sort of stuff either. Anything where I have to pay someone else $$ for recognition is BS in my book!

While income potential is huge for almost any type of insurance, FE is all about volume, its a quick one time transactional sale then move on.
While you can very easily make $100k+ selling FE, you will do it with 200 cases per year; Its possible for me to do that with just 4 or 5 large annuity sales. Or with 40 or 50 of my average size life cases.
Normal FE clients are not prospects for repeat business either. I will generate on average 3 additional sales on down the road for every initial client I gain. And thats not counting referrals either.

Im not trying to say FE is bad, it has its place and theres a market for it. But im just illustrating the difference in mindset/business model.
FAs are sellable over the phone, im sure many of your clients have small CDs that they rollover year to year. That could be a huge revenue stream with your existing book that you have not tapped yet...

 

[pfs.bjohnson]

Im not a fan of MDRT and that sort of stuff either. Anything where I have to pay someone else $$ for recognition is BS in my book!

While income potential is huge for almost any type of insurance, FE is all about volume, its a quick one time transactional sale then move on.
While you can very easily make $100k+ selling FE, you will do it with 200 cases per year; Its possible for me to do that with just 4 or 5 large annuity sales. Or with 40 or 50 of my average size life cases.
Normal FE clients are not prospects for repeat business either. I will generate on average 3 additional sales on down the road for every initial client I gain. And thats not counting referrals either.

Im not trying to say FE is bad, it has its place and theres a market for it. But im just illustrating the difference in mindset/business model.
FAs are sellable over the phone, im sure many of your clients have small CDs that they rollover year to year. That could be a huge revenue stream with your existing book that you have not tapped yet...

I couldn't agree with you more. I think it's just like any other business, you kind of have to start at the bottom with something and create a "brand name" for yourself and work yourself into larger cases from both annuities and life. Much like an attorney starting out is willing to take the "ambulance chaser" cases to grow into a better "book of clients", such is a FE agent starting out with just that but can work into adding med supps, more whole life and term cases for family members and friends and then buy yourself some time with the income you are making selling FE to study more into annuities or even provide cash for other biz endeavors to diversify! Not knocking FE, it is what it is. Compare it to swingin a hammer all day long and working for the man, I'll sell FE 7 days a week. The key is having the vehicle to earn the substantial cashflow in just a few days per week to be able to focus on other interest....if you have any.

 

[sman]

Great 7 posts and they are all spam. I guess you really didn't read the forum rules that you agreed to when you registered?

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