Why Do So Many Agents Want to Sell Final Expense?

[retread]

Nobody that has any estate worth mentioning would pay for a final expense policy outside of a funeral home. There are cases where people will buy the policy in a funeral home as part of their planning. People who buy FE outside of this are low income individuals who do not have any $ to be buried. They are desperate and know they are going to die soon and don't want to 1) leave their family with the bill or 2) as a client of an agent on this board once said to me" I don't want them to throw me in the river". Why in the heck would someone with any type of an estate pay for final expense when they could easily pay for it themselves? I am sure there are a rare few that do but for the most part; that is not the case.

I think you have the finger on the issue. It is also what, IMHO, is what is so hard to get by in LTCi sales. For LTCi, the client has to have means to keep up the premium payments. This rules out lower middle class, because at the first hiccup, goodbye to that expense. Those with assets to protect don't want to be at the mercy of the state nursing homes and will spend whatever it takes to ensure that. But the lower the income, the less likely the LTCi sale. FE, on the other hand is exactly the opposite.

 

[nka245]

I think you have the finger on the issue. It is also what, IMHO, is what is so hard to get by in LTCi sales. For LTCi, the client has to have means to keep up the premium payments. This rules out lower middle class, because at the first hiccup, goodbye to that expense. Those with assets to protect don't want to be at the mercy of the state nursing homes and will spend whatever it takes to ensure that. But the lower the income, the less likely the LTCi sale. FE, on the other hand is exactly the opposite.

That is exactly the case...

 

[Guest]

Am I the only one that doesn't understand why so many agents continuously ask what is the best way to sell final expense? Where can I contract for final expense? How do I cold call for final expense?

Are people seriously so lazy that they'd rather sell a simplified issue product at a much lower benefit amount to someone who could easily qualify for an underwritten paramed universal life policy? I've always been told it is always best to do what most benefits the client and the commissions will follow from there....it seems most agents just want to find someone interested, sign here, sign there, boom, commission, see you in 10 years or so. Am I nuts or does this seem to be a growing trend?

No, you're not nuts, just clueless. Perhaps if you ever learn what you are talking about you will understand and not insult professional agents that do.

 

[Todd King]

No, you're not nuts, just clueless. Perhaps if you ever learn what you are talking about you will understand and not insult professional agents that do.

Wow Randy, short sweet and to the point! I like it!!

 

[Guest]

Todd,

I think this is part of the OP's point. The UL would require a paramed, blood & urine and underwriting. All of which require time and energy of the agent. The FE product doesn't. So if you could offer your client $50k of coverage for the same cost as $15k, but one would require 30-60 days to issue and require an exam and your commissions are the same, which one does the average agent offer?

Unfortunately, many will go with the path of least resistance and offer the one that gets him/her paid the quickest.

Any experienced agent has been around long enough to know which conditions would be an issue in underwriting and which ones would get through. If an agent is not even giving the client the option, they are only serving themselves.

There is only one person you are leaving out of this equation, the customer. Most of my clients do not want any med work and hate to go to the doctor also. They don't want a phone inspection. They are barely willing to answer some health questions. All they want is to purchase life insurance so no one is passing the hat at the funeral.

That is what they want but your opinion is that we should not give them what they want. And if we do we are only serving ourselves. Have you considered the fact that not all agents even sell UL at all? It sounds like you are working with a different clientele than what I usually run across.

 

[nka245]

There is only one person you are leaving out of this equation, the customer. Most of my clients do not want any med work and hate to go to the doctor also. They don't want a phone inspection. They are barely willing to answer some health questions. All they want is to purchase life insurance so no one is passing the hat at the funeral.

That is what they want but your opinion is that we should not give them what they want. And if we do we are only serving ourselves. Have you considered the fact that not all agents even sell UL at all? It sounds like you are working with a different clientele than what I usually run across.

Firstly, I WON'T sell UL right now... not worth it. This is not the time to sell it and it definitely is not a product to sell to someone in their 70s with cancer and coronary histories...AND to boot, that is on a fixed income. Definite NO NO. They just want something to bury them so they don't roll over in their grave thinking that their family was burdened with their burial.

So in short, I am with LR on this. Some people are just clueless when it comes to FE insurance... and that is okay. What isn't okay is passing ignorant judgment.

 

[360]

No, you're not nuts, just clueless. Perhaps if you ever learn what you are talking about you will understand and not insult professional agents that do.

Amen brother!

 

[dgoldenz]

There is only one person you are leaving out of this equation, the customer. Most of my clients do not want any med work and hate to go to the doctor also. They don't want a phone inspection. They are barely willing to answer some health questions. All they want is to purchase life insurance so no one is passing the hat at the funeral.

That is what they want but your opinion is that we should not give them what they want. And if we do we are only serving ourselves. Have you considered the fact that not all agents even sell UL at all? It sounds like you are working with a different clientele than what I usually run across.

Must be a different clientele I guess.....maybe depends on the area of the country you're in. None of the people we've talked to has ever objected to answering questions or taking an exam and we're licensed in 13 states. "We should give them what they want" -> most people want health insurance for $50/month too, but it's our job to educate them as to why and how this is a bad idea and there are better solutions out there. Agents aren't supposed to be order-takers, or else they'd just hire someone to do it for $10/hour instead of paying commissions.

Firstly, I WON'T sell UL right now... not worth it. This is not the time to sell it and it definitely is not a product to sell to someone in their 70s with cancer and coronary histories...AND to boot, that is on a fixed income. Definite NO NO. They just want something to bury them so they don't roll over in their grave thinking that their family was burdened with their burial.

Why is this not the time to sell UL? If anything, this is the BEST time to sell UL because the no-lapse guarantees could be gone soon enough. Believe it or not, people with cancer and coronary histories can get underwritten policies too and still obtain more coverage or have a lower premium than if they had bought a FE policy. Obviously, this depends on the medical history, but they can be declined for FE policies too. However, unless it's brought to their attention, some people will never even think about it, they'll just go with what they saw on TV for "pennies a day." GI life insurance is another can of worms, but I'll leave that alone for now.

 

[nka245]

Must be a different clientele I guess.....maybe depends on the area of the country you're in. None of the people we've talked to has ever objected to answering questions or taking an exam and we're licensed in 13 states. "We should give them what they want" -> most people want health insurance for $50/month too, but it's our job to educate them as to why and how this is a bad idea and there are better solutions out there. Agents aren't supposed to be order-takers, or else they'd just hire someone to do it for $10/hour instead of paying commissions.

Why is this not the time to sell UL? If anything, this is the BEST time to sell UL because the no-lapse guarantees could be gone soon enough. Believe it or not, people with cancer and coronary histories can get underwritten policies too and still obtain more coverage or have a lower premium than if they had bought a FE policy. Obviously, this depends on the medical history, but they can be declined for FE policies too. However, unless it's brought to their attention, some people will never even think about it, they'll just go with what they saw on TV for "pennies a day." GI life insurance is another can of worms, but I'll leave that alone for now.

Are you kidding me? Maybe it is great for someone with a decent net worth but no-lapse or no, do you think that someone of marginal financial means looks at a UL policy for more than just a substandard investment? Every single person I have spoken with who wanted UL for less than 250k always wanted to know when they could borrow against it. If you tell them that it ends up being at zero in year 20 or whatever it is, do you still think the majority of them will want it? Also, just because it is a no-lapse doesn't make it forever a no-lapse... what about lost interest? What if the particular policy doesn't have a make-up provision or even if it does, the customer can't or doesn't want to make up for lost interest?
What is the freaking benefit of selling something like that to a 70 year old who is on a fixed income? The FE policies give them peace of mind that they will be buried. You are talking about people who want policies from 2500 to 50k... not anything more. They don't have to be poked, prodded, interrogated. If you can't see the benefit in that with an elderly person who is on a fixed income; I am just simply at a loss for words.

By the way, I don't specialize in FE policies... This is just my opinion regarding FE.

 

[bluemarlin08]

They don't have to be poked, prodded, interrogated. If you can't see the benefit in that with an elderly person who is on a fixed income; I am just simply at a loss for words.

So, you don't think it is important to show the client that by getting, poked , prodded and interrogated that it might save them some of that fixed income? I guess that puts me at a loss for words.