Difference Between Pre-need Insurance and F.E. Insurance

[WinoBlues]

Thank you and all the above does make sense. But....still my question # 2 remains....is this a good source for leads? nad how would we get paid??

OK, I am probably the least qualify to answer this. I will tell you how i get a few cases a year from a couple funeral homes. I have built relationships with a couple funeral directors. I have sent them a few Preneed and they send me more FE and traditional.

 

[pcbinsurance]

It's not a good source for leads because the Funeral homes have licensed agents to sell those.

 

[jdeasy]

Thank you and all the above does make sense. But....still my question # 2 remains....is this a good source for leads? nad how would we get paid??

I didn't read your second part. It can be a source of leads after you have been in this business a while.

I have relationships now with many funeral homes. In Ky you have to be a licensed funeral director to sell preneed so I'm certainly not getting those as leads. But the funeral home will sell them to them.

Most of the funeral homes will have a licensed agent there that will write the preneed and also the FE. But some of the smaller ones don't. I get a few referrals from those.

In Indiana you don't have to be a licensed funeral director but the closest Indiana city to me, Evansville, is over run with agents at every funeral home.

Fortunately for me those agents, for the most part, are not very good at selling FE. Outside of Newby and one other guy it's almost like they don't want to sell FE.

I have developed a relationship with a couple of the small black funeral homes that don't have an agent staff. They send people to me.

The biggest problem with funeral homes for leads is that they don't understand life insurance and don't trust life insurance companies. Most of them don't know that there is such a thing as life insurance that pays without a 2 year wait. So it's also an education process once you are able to get in the door in the first place.

The best way to do that is by being the contact on a contestable claim and working with the funeral home to guide them through the process. They are used to preneed paying right away and non contestable policies being assigned. They don't understand the 3-6 months process of a contestable claim and they don't like it.

 

[Newby]

So newby I always have seen you say somebodys who's terminally ill should get a preneed plan. So it pays 30% months 6-12 and then increases monthly to month 24. If mostly terminal people bought a pre need plan the insurance company would be belly up. I guess if every deathly ill sick person bought a gerber policy and the avg person lived 3 yrs they'd also be in trouble.How are preneed plans priced? Are they based on the insurance companys loss ratios?Is there big price differences between different pre need plans?

It pays 70% at the 12th month.

When I first got into pre-need it covered 35% as soon as they signed the app. The only health question was Are you alive at this moment? 70% at the 12th month. They even had the option of paying a higher premium (around $250 for $10,000) and that changed to 50% coverage day one and 100% at the 12th month month. No one cared how much premiums were because they would just pay it off over 3-years same as cash anyway.

Yes. There is no better lead source than working with a good funeral home. But they don't usually want brokers. They don't want an agent who also sells for their competition (the other local funeral homes. )

 

[inreverse]

Thank you and all the above does make sense. But....still my question # 2 remains....is this a good source for leads? nad how would we get paid??

Short answer, usually not, most also have a life license and are more than willing to write it for themselves, unless you are bringing business to them already