Final expense insurance is a product that ensures a client’s final expenses are paid for and the burden does not fall to their survivors. These expenses can be extreme and unexpected for those who have not set up pre-arrangements with funeral homes or already purchased a life policy when younger. Even certain pre-arrangements can hide unexpected costs as they are not adjusted for inflation or are only locked in to a certain adjustment. The median cost for an adult funeral, with viewing and vault as of 2014 was $8508 (NFDA.org). Even cremation is still $6078 (NFDA). These costs can be overwhelming to many families, especially in the case of unexpected death.
The financial impact on your clients notwithstanding, there are other benefits to offering final expense insurance as the agent. The market for final expense insurance is probably bigger than you think. According to the results of a 2012 LIC/CSG survey of 30 insurers there were almost 700,000 new policies written in 2012. In comparison, approximately 500,000 new Medicare supplements were written in 2010. There were almost 40% more final expense policies written in a single year, nationwide, than there were Medicare Supplements. Not offering final expense insurance to your prospective clients is just letting commission walk out your door and into someone else’s. But the good news here is that 78% of life insurance shoppers with previous relationships with an agent purchased life insurance from that agent when it was offered.
Scheduling a time (COMPLIANCE: you cannot discuss any products during a Medicare Advantage Plans or Prescription Drug Plans presentation unless specified on the Scope of Appointment Form – at no time can Final Expense Plans be discussed during these presentations) to speak with your existing and prospective client about final expense insurance is a great way to build value around your suite of products. Remember, the numbers are on your side. If you offer these products and build the proper value to your client they are likely to sign. You can use your current and prospective client list to market your final expense products without needing new lead drops or new referrals.
If you’re ready to start marketing final expense to your clients, contact us today and we can get you set up with customized marketing materials and training to start selling today!
*We do not keep product forms for all states. If you need a product that is not listed on the website, please reach out to us at 1-800-689-2800 for assistance.