Why does Final Expense feel scummy

[Markthebroker]

Yup. They have a problem. We have a solution.
We can fix it. But we did not break it.

No. You are addressing one of the many symptoms of the problem, and in no way shape or form fixing the problem.

But you are taking their money, and in a very small way taking away their ability to fix the problem while addressing one of the many symptoms.

I believe that's why the op feels scummy.

 

[Josh]

No. You are addressing one of the many symptoms of the problem, and in no way shape or form fixing the problem.

But you are taking their money, and in a very small way taking away their ability to fix the problem while addressing one of the many symptoms.
.

"Final expense" does solve the problem of how to pay for a funeral. A lot of low income individuals can afford a $50-$100/month life insurance policy, but their families would be destroyed at the emotions involved with dealing with the costs with an unfunded funeral, along with the actual costs of the unfunded funeral.

So if Bob is 70 years old, doesn't have a way to pay for his funeral, and has five kids that would pass the plate to cover it, how is Bob paying $75/month for a life insurance policy not fixing the problem?

More importantly, what money is being taken away to solve what problems?

Just as a note, I've literally been in the homes of hundreds (thousands?) of seniors discussing their Medicare and Life Insurance needs. There are a lot of people in different positions in life, but at the end of the day, final expense is only as "slimey" as the person selling it.

 

[DayTimer]

No. You are addressing one of the many symptoms of the problem, and in no way shape or form fixing the problem.

But you are taking their money, and in a very small way taking away their ability to fix the problem while addressing one of the many symptoms.

I believe that's why the op feels scummy.

For an insurance man, you sure have a low opinion of insurance.

 

[WinoBlues]

No. You are addressing one of the many symptoms of the problem, and in no way shape or form fixing the problem.

But you are taking their money, and in a very small way taking away their ability to fix the problem while addressing one of the many symptoms.

I believe that's why the op feels scummy.

Maybe we are talking about different problems.

The problem I usually get when someone calls me.

They are concerned, their forefront problem, that if they die tonight or in five years that there will be a check so that their destitute single mother daughter does not have to wash cars to take care of the final expenses. Then, of course, we talk about transition money.

They are not thinking symptoms they are thinking death.

..... that people haven't even set aside enough to be buried. ......

[QUOTE="Markthebroker, post: 1382388, member: 77312"]you are taking their money, and in a very small way taking away their ability to fix the problem[/QUOTE]

My experience is if they reached 65 years old and have not put aside the $50 a month to save the $10,000 they will not start now. And if they did that somewhere during the 200 months to total $10,000 that daughter is going to need alone.

Your experience of course may be different.

 

[Markthebroker]

For an insurance man, you sure have a low opinion of insurance.

Firstly, I am not an insurance man, I am an insurance superman - see photo.

As far as insurance, I have different opinions about different products. I think you will have a hard time finding anyone in any industry that loves all products, and all scenarios they are used.

 

[Markthebroker]

My experience is if they reached 65 years old and have not put aside the $50 a month to save the $10,000 they will not start now. And if they did that somewhere during the 200 months to total $10,000 that daughter is going to need alone.

Your experience of course may be different.

I agree with you on that.

 

[TRG1225]

Lots of awesome posts here so I'd feel bad just quoting one. I used to have that outlook about FE...but like Daytimer said, wait until you deliver that death benefit.

I never had to do so because my exposure to FE has been super limited up until now, but this past AEP, on December 12th a client I had just moved from an Aetna PPO to a Humana HMO with a $130 giveback and less Rx cost (and yes, all her docs were in network) to save more $$$ asked me about a FE plan to replace one that had lapsed. She said she couldn't purchase though until she got some money in January 2021.

My guess is she was waiting on a tax return. On December 23rd, I sent her a text of a link to some info I had promised to follow up on and a picture of my daughter she had asked to see when we talked. I never heard back. I found out later she went into the hospital that same day and she passed the 27th.

Her niece, who referred her to me, said they have no idea how they are going to pay for her funeral. Her last name was Davenport, and one of my business partners is named 'Dave.'

So at least ten times a week when I'm sending Dave an email, I'm vividly reminded of how much FE can help someone.

 

[Travis Price]

When I worked for Monumental Life (circa 2005) with a debit route...

You'd be lucky if you could get people to pay $25 dollars on a monthly schedule. Then you'd get to roll into people's busted houses in an ultra poor neighbor to try to stop them from lapsing...

That made me feel scummy.

But let's be real for a second...

People in that situation learn money habits from their parents. Some people learn they have to do better, most learn to do the exact same thing.

God knows the educational system isn't going to teach them about it.

The reason I never loved FE is because you have to kind of babysit the clients. It's great for referrals, but I'm just not patient enough to call someone for the 4th time this year to avoid CB.

Granted, this is based ONLY on an industrial route experience... Which is mostly extinct these days...

My wife (the girlfriend) used to hate the idea of me carrying $1500 on SSI check day in those neighborhoods.

 

[mudhound]

Same could be said for car sales
Lawyers
Real Estate
timeshare
flea Markets
ect.............
But, it is not. In almost every instance there is a need of some sort.

 

[DayTimer]

see photo.

I sent her a text of a link to some info I had promised to follow up on and a picture of my daughter she had asked to see when we talked. I never heard back. I found out later she went into the hospital that same day and she passed the 27th.

That's the stuff that hits you in the feels.

I bought some aged DMs from @Rearden back in 2016 and not knowing any better I was calling them on Friday to set appointments for whenever they would see me. I made an appointment with Frank for Monday afternoon at 1PM. I arrived just a few minutes late as the appointment right before his ran a bit long. I knocked, and a young woman answered the door, she was in tears, trying to hold it together and not succeeding very well at all. I told her I was there to meet with Frank.

Franklin was her dad, and he had passed from sudden and quite unexpected heart attack that morning. She and her siblings had just gotten back from the hospital.

Franklin had no insurance. I still keep a copy of the go-fund me page his kids had set up later that day.

They tried to get $5000 and the made it to around $300.

Yes sir. Deliver your first death benefit to a grieving family. Then tell me how slimy FE is.