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There is no doubt, all types of designed policies have a place. When leads on Final Expense are mailed, your dollars are normally wasted if they are mailed to prospects with over $40,000 or so household income. What you don't want is the $200,000+ homes (Tennessee pricing).
You want the small frame home (most of the time the home is paid for); daddy has been the breadwinner, and mama didn't work, living off a modest retirement. This is not especially "the hood", but a older section of town or rural area. We usually target mailings to ages 55-80.
Although we have a term calculator on our website and we do have agents pushing term, very few agents in this market actually ever have the chance to offer term. Most of the potential clients would run you off fast if you told them their policy was going to disappear in 10-30 years.
I have seen many times when Final Expense Insurance was actually substantially lower priced than rated-up term; the Final Expense would last forever... the term was gone after a few years. A few years back, we had a situation where a lady paralyzed by an operation, in a wheelchair wanted $150,000 of life insurance to cover a mortgage. We could not find a fully underwritten policy that would accept her. It took us a year to find companies that would write from $15-30,000 of Final Expense, but we got it done. A lot of agents would have never tried to supply her needs, but we did and got paid well for our efforts.
If you check the profit margins for the companies selling Final Expense, they are usually about the same as the companies specializing in Term. Of course, the reason is many more claims are built into Final Expense. With Term an agent is usually selling Protection, just in case. With Final Expense, a selling point is we are all gonna leave here, we just don't know exactly when, so be prepared.
You want the small frame home (most of the time the home is paid for); daddy has been the breadwinner, and mama didn't work, living off a modest retirement. This is not especially "the hood", but a older section of town or rural area. We usually target mailings to ages 55-80.
Although we have a term calculator on our website and we do have agents pushing term, very few agents in this market actually ever have the chance to offer term. Most of the potential clients would run you off fast if you told them their policy was going to disappear in 10-30 years.
I have seen many times when Final Expense Insurance was actually substantially lower priced than rated-up term; the Final Expense would last forever... the term was gone after a few years. A few years back, we had a situation where a lady paralyzed by an operation, in a wheelchair wanted $150,000 of life insurance to cover a mortgage. We could not find a fully underwritten policy that would accept her. It took us a year to find companies that would write from $15-30,000 of Final Expense, but we got it done. A lot of agents would have never tried to supply her needs, but we did and got paid well for our efforts.
If you check the profit margins for the companies selling Final Expense, they are usually about the same as the companies specializing in Term. Of course, the reason is many more claims are built into Final Expense. With Term an agent is usually selling Protection, just in case. With Final Expense, a selling point is we are all gonna leave here, we just don't know exactly when, so be prepared.
