How to Select Final Expense Companies

[CaptiveBroke(r)]

I'm in NY so the FE field is slim but I find Columbian to have the best product to fit my customer's needs, with a combination of a liberal FE and a GI product as well.

 

[Newby]

Newby, I never saw this post until today but it is a HOME RUN post. This is the type of information and due diligence that agents should do.

XRAC, I hate to have to tell you but your Oldtimers is really kicking in. If you look at page 1 of this post the 3rd post was you.

But thanks for the kudos...again.

 

[EB34]

I'm in NY so the FE field is slim but I find Columbian to have the best product to fit my customer's needs, with a combination of a liberal FE and a GI product as well.

I like Columbian too. Their simplified issue FE is an easy sell, and most of my business issues within 72 hours of faxing it. Plus, gotta love those 10% renewals years 2-10!

 

[Norwayguy]

What i don't understand is why people would want to buy a "final expense policy" unless they are quite old. These policies issue ages 0-85...it would be much cheaper to just get a regular term insurance policy, no? Or inexpensive whole life policy...


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Excellent post! Thanks for taking the time to share that with us newbies!

Your right you don't get it. Final Expense policies are for those people that have waited until they are in their later years before deciding that they don't want to burden their loved ones with their final expenses.

Being that the policy must be in force at death a term policy should NOT be offered as term policies are designed to not be in force at death.

Your other option of a low cost WL, I'm assuming you mean a fully underwritten policy has more merit its just that most people purchasing these policies have some health issues and they didn't get into their 60s, 70s or 80s without taking care of these things by always doing whats best...They want instant gratification easy issue etc.

 

[xrac]

XRAC, I hate to have to tell you but your Oldtimers is really kicking in. If you look at page 1 of this post the 3rd post was you.

But thanks for the kudos...again.

It has been too long ago and I didn't see that I had posted!

 

[DEGRI]

Newby:

You are correct. I didn't take that into consideration ($20k for someone with health issues). I am so used to selling TL and WL that the advantages of FE didn't occur to me when I was reading posts on another section of the forum.

Thanks for waking me up!

DEGRI

What about people who have a few health problems such as bi-polar disorder for example and are on disability and want permanent coverage for say $20,000.

What would you sell them?

What makes you think term life is a good fit for someone that is concerned mainly with final expenses?

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Hi, Peter (Norway Guy): I understand about the older population. It wsa the issue age at 0-...I get it, I get it, I get it...THANKS!

 

[Hopwood04]

31. Is the policy issued in a Funeral Trust? This is really the most important question. I won't sell a policy that isn't in a Funeral Trust. A policy issued in a funeral trust is exempt from the medicaid recovery act.

 

[Newby]

31. Is the policy issued in a Funeral Trust? This is really the most important question. I won't sell a policy that isn't in a Funeral Trust. A policy issued in a funeral trust is exempt from the medicaid recovery act.

The way you keep repeating that, I doubt you are using great judgment on when to use the funeral trust assignment.

A funeral trust has no lookback because it is NOT to be used until needed to qualify for Medicaid.

 

[go4life]

When consumers don't understand something, they will only focus on price. If health plan A is cheaper than health plan B they will always take A UNLESS they understand advantages to plan B.

Agents do the same thing with selecting insurance companies to sell. They tend to focus more on commission levels than how sellable a product is. While commission is real important, ALL final expense companies pay real good commission. But some companies are MUCH more saleable than others. A true sales professional will select the BEST companies first and THEN make sure you are getting the highest level of commission you can get on that company.

Here is a list of questions you should ask about the main companies you are going to carry with you. If your main company has weaknesses in certain areas, you should have backup companies that fill in for the weaknesses. Only you can decide which questions are the most important to you.


1. How competitive are their rates?
2. What is the A.M. Best rating of the company?
3. How do their marketing materials look? Do they supply them at no cost?
4. Can you easily download all forms from their website?
5. Does their website have GOOD reporting that you can easily access?
6. Is there a lead program?
7. Does this company allow monthly billing as well as bankdraft? Does that option affect YOUR commission?
8. Does this company allow the ages of 0-85? If not what ages are you limited to?
9. Does the company have immediate payout upon death or do they require a death certificate?
10. Does the company pay double for accidental deaths? Are child/grandchild riders available?
11. Is there a nursing home rider included? Is there a terminal illness rider included?
12. What are the minimum health requirements this company will accept? Guaranteed issue? Hospital, nursing home, AIDS?
13. Is there a height/weight chart? Can obese clients qualify for immediate coverage?
14. Do they count all tobacco users as smokers or is smokeless allowed?
15. How does this company treat non-insulin dependent diabetics? How about diabetics who take insulin?
16. Does this company consider maintenance medicines as ongoing treatment? (Example: if someone had a heart stint surgery 5-years ago and still takes a blood thinner, how are they rated?)
17. Does this company offer limited pay plans as well as lifetime pay (Paid up in 10-yr, 20-yr etc.)? If they do, what commission levels to those pay types pay in comparison to the lifetime pay?
18. Does this company allow single pay? If they do, on what ages? What is the minimum face amount? What ages do they allow?
19. How easy is it to look at their application and YOU as the agent determine with 95% accuracy where any given client will be placed once you have the health information of the client?
20. Is there a clear agent field guide for underwriting?
21. Does the company allow telephone sales? If yes, do you have to mail or fax anything to anybody?
22. How much is the policy fee? Is it commissionable? (If not, reduce the commissions by at least 5% when comparing to companies that pay on the policy fee.)
23. What is the first year commission level that you will get?
24. What is the commission level for years 2-10?
25. Is there commission after year 10? If so, how much?
26. Are there bonuses, trips, lead credits etc.?
27. Does this company have any brand name awareness to consumers?
28. Does this company market direct to consumers and compete with their own agents?
29. How easy is it to reach someone at the company when YOU need agent support?

I appreciate for your information. They're very good to me

 

[gmcarter]

When consumers don't understand something, they will only focus on price. If health plan A is cheaper than health plan B they will always take A UNLESS they understand advantages to plan B.

Agents do the same thing with selecting insurance companies to sell. They tend to focus more on commission levels than how sellable a product is. While commission is real important, ALL final expense companies pay real good commission. But some companies are MUCH more saleable than others. A true sales professional will select the BEST companies first and THEN make sure you are getting the highest level of commission you can get on that company.

Here is a list of questions you should ask about the main companies you are going to carry with you. If your main company has weaknesses in certain areas, you should have backup companies that fill in for the weaknesses. Only you can decide which questions are the most important to you.


1. How competitive are their rates?
2. What is the A.M. Best rating of the company?
3. How do their marketing materials look? Do they supply them at no cost?
4. Can you easily download all forms from their website?
5. Does their website have GOOD reporting that you can easily access?
6. Is there a lead program?
7. Does this company allow monthly billing as well as bankdraft? Does that option affect YOUR commission?
8. Does this company allow the ages of 0-85? If not what ages are you limited to?
9. Does the company have immediate payout upon death or do they require a death certificate?
10. Does the company pay double for accidental deaths? Are child/grandchild riders available?
11. Is there a nursing home rider included? Is there a terminal illness rider included?
12. What are the minimum health requirements this company will accept? Guaranteed issue? Hospital, nursing home, AIDS?
13. Is there a height/weight chart? Can obese clients qualify for immediate coverage?
14. Do they count all tobacco users as smokers or is smokeless allowed?
15. How does this company treat non-insulin dependent diabetics? How about diabetics who take insulin?
16. Does this company consider maintenance medicines as ongoing treatment? (Example: if someone had a heart stint surgery 5-years ago and still takes a blood thinner, how are they rated?)
17. Does this company offer limited pay plans as well as lifetime pay (Paid up in 10-yr, 20-yr etc.)? If they do, what commission levels to those pay types pay in comparison to the lifetime pay?
18. Does this company allow single pay? If they do, on what ages? What is the minimum face amount? What ages do they allow?
19. How easy is it to look at their application and YOU as the agent determine with 95% accuracy where any given client will be placed once you have the health information of the client?
20. Is there a clear agent field guide for underwriting?
21. Does the company allow telephone sales? If yes, do you have to mail or fax anything to anybody?
22. How much is the policy fee? Is it commissionable? (If not, reduce the commissions by at least 5% when comparing to companies that pay on the policy fee.)
23. What is the first year commission level that you will get?
24. What is the commission level for years 2-10?
25. Is there commission after year 10? If so, how much?
26. Are there bonuses, trips, lead credits etc.?
27. Does this company have any brand name awareness to consumers?
28. Does this company market direct to consumers and compete with their own agents?
29. How easy is it to reach someone at the company when YOU need agent support?

I appreciate this information. I will definitely file it for future reference. You guys sure are helpful to us beginners. Thanks and keep on sharing.