Getting Started with Final Expense
Disclaimer: Life insurance and Final Expense is not included on SOAs and therefore cannot be discussed during Med Adv or Med Part D appointments – they have to be discussed at a separate appointment.
Did you know that the cost of an average funeral is upwards of $10,000?
And that’s excluding costs of unpaid bills, lawyer or executor fees, travel expenses, and time off work. It all adds up very quickly.
What about social security? Did you know that a $255 payment is all that is paid out to qualifying family members?
That leaves around $9,745 left for loved ones to be burdened with. With this is mind, it’s important to help your clients develop a final expense plan to protect their family from the unexpected cost and burden of their final expenses.
In order to help you aid your clients in assessing the risks associated with these unsettling facts, Senior Marketing Specialists has put together this Final Expense Sales Tools Kit.
Follow the sale of another product or as follow up “What have you done to plan for your final expenses?” or “What life insurance do you have in place currently?”
Sales Appointment Opening
Mr(s) Prospect, down the road when it is your time to pass (or other phrase you like for “when you die”), who’s responsibility is it to have the money on hand to pay for your funeral, yours or your children’s? They will usually say it’s their responsibility. You say “I understand but why do you feel it’s your responsibility…why wouldn’t you want to leave that burden for your children to worry about?” They usually say it’s their responsibility; their children have their own lives to live, etc. Now the prospect is telling you why they need the policy, rather than you telling them why they need the policy… Then go into sales presentation.
Door Knocking For Appointments
Hi, my name is ____ and I own ______Insurance Agency here in town. What life insurance do you have in place currently? (Regardless of answer) Well I am taking time today to meet all of my neighbors, but I want to make an appointment to sit down with you and (if they already have life insurance) give you a free review of your current coverage OR (if they have no life insurance agent) show you how you can protect the people you care about with the right type of insurance. Then get out your notepad/planner and look at it. Then tell them days and times you have available. I am available Tuesday at 6:00pm, Wednesday at 7:00pm or Friday at 5:30pm. Which appointment would you like? Then get out your card and write their appointment date and time on it and give it to them. Shake their hand, tell them you will see them soon and leave.
Door Knocking Intro (second option)
I was just down the street meeting with some folks and thought I should pop by for a second and say Hi. (hand them your card) I work with (company name) and do my best to help people save money on their insurance needs; I thought I should see if I could help you too! Do you have just a minute? (Prospect says) Well, what is this about? Take that as “I’m interested”, look down, wipe your feet and say “Well Mam/Sir, I only have a minute. “
Tip: When door knocking, make sure that you are getting in front of as many people as possible. Not everyone will be interested, so don’t waste your time if they aren’t going to buy. Your time is valuable and you have to move on to the next person. If you average 5 people per hour, 40 hours per week that is 200 people you see each week. If only 1% end up buying that is approximately $1500 per week in first year commission. That would be $78,000 per year before expenses so don’t get discouraged! Medicaid?
Other Good Phrases to Use
- Do you realize your bank accounts and assets are not available to your children immediately upon your death?
- Have you thought about all of the specifics your loved ones would have to make decisions about in the 2-3 days following your death? Decide whether burial, cremation, or donation of the body to science is desired, choose a funeral provider and cemetery, select a casket and burial vault, decide on an open or closed casket, make arrangements for a memorial service, choose pallbearers and a religious leader to oversee the funeral, select clothing and jewelry, make arrangements for music and flowers, write an obituary and notify newspapers, and decide how much money to spend on the service.
- Wouldn’t you rather have that all decided ahead of time for them?
Already have life insurance
That’s excellent! I’m glad that you want to plan ahead to take care of your loved ones after your passing. If you do want to take care of your loved ones, a final expense plan could be of great value. You can set aside this policy just for funeral and burial expenses and make sure it is fully protected by assigning it to a funeral trust, unlike other life insurance which is not protected from creditors. This policy will also have an immediate payout so that you loved ones get the money as soon as possible to cover those expenses, term insurance can take months to pay out.
Have money set aside already/wealthy
Well I’m glad to hear that you care about your final expenses and want to plan accordingly, but did you know that almost 60 percent of your lifetime medical expenses are accrued after age 65, and almost $40,000 average in your last 5 years. That means that if your money is not protected then creditors, nursing homes, and hospitals can come after that money, not leaving enough to take care of your final expenses. (See “single premium pitch”)
Can’t afford it
A final expense policy can help you qualify to receive Medicaid. Only the cash value in a whole life policy is attachable by social services when it comes to Medicaid Spending down. Money in CD’s, Bonds, Stocks, and any bank accounts are all attachable so this could help you save money to qualify for Medicaid as well as provide its standard benefit.
Come back another time
I’d love to but I’m afraid I’ll be in a different area helping other families out. The only time to get this coverage is when I’m in your home or neighborhood, which is right now. Most of the people I meet with find that there is additional coverage that can help meet their needs and budget, I will only take 10 minutes of your time and there is no pressure. If it is not something that will work for you and your needs I will just continue on my way.
Need time to think it over
Mr. and Mrs. Jones, I have been doing this for a long time, meeting with folks just like yourself and I can tell you that right now is the closest you will ever come to making this decision. The worst thing that can happen is you don’t qualify, but if you wait you may not be able to obtain or afford coverage. NOW is the best time to give it a try.
Federal Trade Commission Funeral Costs and Pricing Checklist
Thinking ahead allows you to choose the specific items you want and need, and compare the prices offered by several funeral providers. It also spares your survivors the stress of making these decisions under the pressure of time and strong emotions. Using the check list on this site can help your family make sure that they get the most with the money from your final expense plan.
Turn-Key Final Expense Marketing System – Legacy Safeguard
Legacy Safeguard was created to help you and your clients leave a lasting legacy and assist a member’s family through some of the most difficult times in their lives. It provides members with legacy planning and end of life planning, assistance, support, and guidance. Legacy Safeguard has a comprehensive network of services that are able to provide complete end-of-life planning to ensure that a member’s family will be taken care of in their time of need and to help a member be remembered long after they are gone.
If you work in final expense market you need to know the details of Legacy Safeguard. Legacy Safeguard is a turn-key final expense marketing tool. Here are a few highlights:
- Direct Mail
- Newspaper Inserts
- Magazine Ads
- Presentations for Every Selling Venue
- Stand-Up Banners
On average, Legacy Safeguard saves each family over $2,200 on a traditional funeral service! Legacy Safeguard can be added at no charge to many of the final expense carriers offered by Senior Marketing Specialists. To learn more about how you can add the Legacy Safeguard program and the top Final Expense carriers to your portfolio click here or call Senior Marketing Specialists today 1-800-689-2800.