Why Do So Many Agents Want to Sell Final Expense?

[arnguy]

I think as an experienced FE agent, "HoosierDaddy' can present a valid rebuttal to the position taken by "dgoldenz." Come on Travis, let's hear from you.

 

[HomeService]

I think it's a big marketing ploy, this final expense thingy. It used to be mortgage protection, but now everyone is putting the eggs in the final expense basket. By "everyone", I mean marketing organizations and ins companies. I predict that in a few years, it goes away in favor of some other marketing ploy. It must be viewed as a way to put a bunch of premium on the books in a short period of time. Must be. That's all I can think. The thing that puzzles me is all the advances they are willing to pay- to get the premium. They are basically buying dollars with dollars, except when you factor in the profits -that some make from leads. Maybe these are lead marketing ploys- with insurance as a front?
Let me also state that I am for small whole life policies, I'm all for selling them. But I've been doing it for 20 years, as a debit guy, and I sell to the younger crowd. And seniors. I cannot understand the concept of making it a "senior market", then advancing a bunch of money to people to sell what I've been selling for 20 years- as if it's some new concept.

 

[kuhn123]

The avg FE client is either below, at... or just above the poverty level... in most cases. These are folks who have less than a few grand to their names, on avg... and no way to pay for a funeral. They aren't worried about leaving a large sum to anyone, they are worried about being a burden to their kids, since they have done no planning, and mostly it is for lack of funds... they had nothing to plan with. And most of them are NOT in good health, and wouldn't qualify for fully u/wpolicy unless it was a table 6 or 8... which might be higher than the FE rates, who knows.

Most agents working FE are doing so because it is daytime appts, leads are available, easy appts, relatively straight forward sale and presentation, product that fits the need of the mkt simplified issue... or GI, and advanced comm.

Very well said SportsNut! If people think there are a lot of opportunities to sell fully underwritten products in this market, they are mistaken. Most simply will not qualify.
If you are an informed agent and know your clients, you would be wasting both their time and yours trying to sell them on why they need 50K and trying to get them to apply for a fully UW policy. Some of my clients wouldn't take 50K if it were free, or even 25K for that matter. They think that if they leave any more money behind than what is absolutely necessary it will only cause strife within the family ranks.
Someone made a comment about agents taking the path of least resistance, but in reality, it is the clients that demand the path of least resistance, and the agent is no more than assisting them with this. The last time I mentioned scheduling a paramed with a client, she turned around and threw a fork at my head, and then proceeded to tell me to "get the F out of her house!" They want the application done right now, and they want it done with as little BS as possible. If they were motivated and willing to jump through hoops they would have had coverage in their 30's , not scrambling to get whatever they can in their 70's.

In my opinion, the increased "popularity" is due to the current and future growth of the senior population, and the large amount of agents wanting to get as far away from Medicare as they possibly can. These agents obviously enjoy working with the senior population, and want to find something that will keep them there, without all of the headaches that current Medicare regulations have placed on them. The final expense market itself is by no way a new invention, and No, it will not dry up in a couple years in favor of "some other marketing ploy".

 

[HomeService]

I don't think "it" will dry up- I think all the "flash in the pan" agents and organizations- will dry up. I think final expense- will always be around. However, I think the advances and all the leads and such- I think the logistics of marketing it- shall change.

I see a bunch of MA agents and MP agents- jumping in, and, if they can jump in, they can just as easily- jump out.

Then : that leaves the people who were- and are- committed to these types of policies. That leaves those agents- to carry on.

 

[Stratos]

I think it's a big marketing ploy, this final expense thingy. It used to be mortgage protection, but now everyone is putting the eggs in the final expense basket. By "everyone", I mean marketing organizations and ins companies. I predict that in a few years, it goes away in favor of some other marketing ploy. It must be viewed as a way to put a bunch of premium on the books in a short period of time. Must be. That's all I can think. The thing that puzzles me is all the advances they are willing to pay- to get the premium. They are basically buying dollars with dollars, except when you factor in the profits -that some make from leads. Maybe these are lead marketing ploys- with insurance as a front?
Let me also state that I am for small whole life policies, I'm all for selling them. But I've been doing it for 20 years, as a debit guy, and I sell to the younger crowd. And seniors. I cannot understand the concept of making it a "senior market", then advancing a bunch of money to people to sell what I've been selling for 20 years- as if it's some new concept.

Hopefully you didn't hurt yourself by all that pounding on your chest.
Why would you say that the product would go away, and then say you have been selling it for 20 years. I know agents that have sold nothing but FE for over 20 years. Say what you want, it serves a much needed service or else we wouldn't need to sell it.
Also, if you think you are going to get a senior to leave the Price is Right for a doctors appointment to draw blood, run test, ect. You must be dealing with a completely different set of demographics than I am.

I would just assume that everyone not jump on the bandwagon and muddy the waters.

 

[360]

I think it's a big marketing ploy, this final expense thingy. It used to be mortgage protection, but now everyone is putting the eggs in the final expense basket. By "everyone", I mean marketing organizations and ins companies. I predict that in a few years, it goes away in favor of some other marketing ploy. It must be viewed as a way to put a bunch of premium on the books in a short period of time. Must be. That's all I can think. The thing that puzzles me is all the advances they are willing to pay- to get the premium. They are basically buying dollars with dollars, except when you factor in the profits -that some make from leads. Maybe these are lead marketing ploys- with insurance as a front?
Let me also state that I am for small whole life policies, I'm all for selling them. But I've been doing it for 20 years, as a debit guy, and I sell to the younger crowd. And seniors. I cannot understand the concept of making it a "senior market", then advancing a bunch of money to people to sell what I've been selling for 20 years- as if it's some new concept.

Home...can you please stop it with the "marketing ploys" and "it used to be mortgage protection" on every freaking final expense post on this board. "Final Expense" is not what you do. You are quite possibly the only person on this board that does what you do...walking around the hood door knocking and then selling young single moms small whole life policies on themselves and their kids. If there were a post on that, you'd be an expert. But no one asks about that.

"Leads" and "Marketing" are not evil. If they were then this forum would surely be called Insurance Hell because almost every other single agent on this board is constantly trying to enhance or improve on their marketing methods thereby increasing their ROI. You too spend money on "Leads" unless of course you place zero value on your time.

 

[SportsNut]

Home...can you please stop it with the "marketing ploys" and "it used to be mortgage protection" on every freaking final expense post on this board. "Final Expense" is not what you do. You are quite possibly the only person on this board that does what you do...walking around the hood door knocking and then selling young single moms small whole life policies on themselves and their kids. If there were a post on that, you'd be an expert. But no one asks about that.

ROFLMAO... This was the funniest thing that I read all day, I am literally falling out of the chair

Debit routes are soooo 1950. I honestly didn't think that any company had them any longer. I would imagine that if an agent could do that successfully, they could make 5x the money using any other efficient marketing method. Nothing easy about a debit route, in fact I would rather be tied to a post and whipped with a leather strap...

 

[HomeService]

Just calling it like I see it.

 

[bluemarlin08]

Still waiting for that premium on the 83 year old smoker. I think I get it about FE, there really isn't any UW breaks, if one is uninsurable with regular UW they are uninsurable with FE. The only advantage is no exam and UW starts at about a table 4. Better to have some insurance than none at all. I still don't get it that there are so many folks out there that are adverse to a free medical exam and that fear drives them to pay 2 to 4 times more for coverage. But whatever blows up their skirt.

 

[SportsNut]

Still waiting for that premium on the 83 year old smoker. I think I get it about FE, there really isn't any UW breaks, if one is uninsurable with regular UW they are uninsurable with FE. The only advantage is no exam and UW starts at about a table 4. Better to have some insurance than none at all. I still don't get it that there are so many folks out there that are adverse to a free medical exam and that fear drives them to pay 2 to 4 times more for coverage. But whatever blows up their skirt.

I was waiting for that premium also... It seems that the young, inexperienced agent that got this discussion started with his misconceptions, after never have been on an appointment where there is a FE need, has abaondoned ship. Can't find him with an all out APB...

The range of prem for FE will vary for the 83 yr old... depending on the companies... appx 110 to 124 per mo... for 5K face. Expensive yes, but issuable... yes.

Your assumption above is incorrect... there are many folks who wouldn't qualify on a fully u/w plan that could qualify for FE. First off, most companies aren't geared for the product, and if you submitted an 83 yr old smoker that has some health issues, they will get out the rubber stamp quickly. Think about it, how many m smokers at age 83 are still living to begin with... Beyond the mortality norms.

FE is a product that is marketed... specifically to a low income segment of the mkt... talking generalities now, and they respond by mail. Many do not think they can get ins, and some can't. Some can qualify for graded benefit, even with terminal illness, which is better than nothing for them. But one thing is for sure, these are not you typical ins client who are shopping online for a quote, or would fare well with full u/w... Just ins't the case and if an agent went out to be Sir Lancelot and save the FE world, going to write all these folks on fully u/w, higher face amt policies, Sir Lancelot would go broke quickly...
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Just calling it like I see it.

Home:

I got a question for ya... Why is it that you work a debit route...? (serious).

I know that debits are not exactly a stroll in the park... and I would first think that most agents couldn't do that job... and I would then think that if you could be successful doing that job, you could be 4 times successful doing what most agents do... FE, med supp., under 65 health, et al

Splain that to me... cause I wanna know. It doesn't add up to me, but I'm sure you have your reason.