No,,, but in that situation there are companies that offer single premium whole life. If their health is such they can't qualify, refer them to a preneed agent and move on.
Why not do both?
Could... But I think in this area you have to be associated with a funeral home and I don't want to do that.. I am 75 and have been independent for so long I am not about going to start accounting for myself to anybody now.
tikibarrister
Guru
- 472
From a consumer perspective, why would a consumer prefer pre-need over FE?
With pre-need:
- What if the funeral home goes out of business? You could find your contract transferred somewhere else.
- What if the funeral home is bought? Your friendly neighborhood funeral home might suddenly be owned by the less friendly Almagamated ConHugeCo.
- And of course you can't use funds for anything else. No matter how small someone's estate is, there are always a million small expenses - packing stuff up, finishing off utility bills, etc.
- FE men are much sexier than pre-needs salesmen, so there is the visual treat when signing up.
With pre-need:
- What if the funeral home goes out of business? You could find your contract transferred somewhere else.
- What if the funeral home is bought? Your friendly neighborhood funeral home might suddenly be owned by the less friendly Almagamated ConHugeCo.
- And of course you can't use funds for anything else. No matter how small someone's estate is, there are always a million small expenses - packing stuff up, finishing off utility bills, etc.
- FE men are much sexier than pre-needs salesmen, so there is the visual treat when signing up.
- 16,887
No. Lincoln was in PreNeed for many years but they could not compete with the bigger players in that market. They redesigned their FE product and went heavier in that direction and gave up on their PreNeed sales.
- 16,887
Those are common misconceptions that are often repeated.
When a funeral home goes out of business you just use your PreNeed policy at any other funeral home that you want. Just like you would with an FE policy.
Same if the funeral home is bought. Just transfer it elsewhere if you want.
You don’t usually overfund a PreNeed contract but you cold if you want to. You can use the funds for whatever you want. UNLESS you are on Medicaid. Then only funeral or cemetery costs can be covered by the policy with PreNeed OR final expense.
If you have been to many tropical conventions with FE agents you realize that very few of them are “sexy”. They do tend to have much better looking spouses though.
- 16,887
Wealthier people are attracted to PreNeed. Low income people are attracted to FE.
It’s pretty simple. Lower income people like monthly payments.
Higher income people like having everything paid in full and would never consider signing up for a LIFETIME payment plan to cover a small amount of money.
Both products are attractive to their targeted group.
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