Final Expense Companies That Pay the Fastes

Really? They don't like it when an insurance agent insinuates himself between the funeral director and the family?...You would be certain that I wouldn't like it. A stream of high volume profanity followed by the slamming of the front door of the funeral home would cause a sonic boom resulting in a seismic event that would initiate the sliding of most of the state of California into the Pacific Ocean...Unless you're primary on the decedent's living will, you don't have the right to any of their info, including their funeral arrangements. It's a violation of the privacy statutes...Why not write a genuine pre-need, if you really want to serve the family?


Funeral home owners must be a different breed out west. Around here, they are very cooperative with the Independent agent. They have always notified me of a claim, assisted with death certificates, etc. The ones that sell only preneed will even refer clients that are in need of a FE plan to me.
 
Funeral home owners generally work very well with insurance agents. They don't see insurance agents as the enemy. They rarely see them at all.

They do have to charge the 5% advancing fee because that is a true cost of business. The ones that don't charge it will give the families that pay up front with a check a 5% discount. That's just a reverse charge.

Insurance agents that help with claims are generally welcomed. It's just very rare to ever see one.

If the agent tries to take over or acts like he has to "protect" his beneficiary from the evil crooked funeral home owner, that would be another matter entirely.
 
theinsuranceman said:
Sometimes JD is informative, but he's an even more entertaining subject. He also has one of those Kentucky hillbilly mentalities. Heck, just look at his grammar and spelling.:D

I wasn't putting him down. I am not the best at writing either. I just thought it was funny he called Newby a dumbass. I wish I wrote 1/4 of the FE policies that they do...
 
Funeral home owners generally work very well with insurance agents. They don't see insurance agents as the enemy. They rarely see them at all.

They do have to charge the 5% advancing fee because that is a true cost of business. The ones that don't charge it will give the families that pay up front with a check a 5% discount. That's just a reverse charge.

Insurance agents that help with claims are generally welcomed. It's just very rare to ever see one.

If the agent tries to take over or acts like he has to "protect" his beneficiary from the evil crooked funeral home owner, that would be another matter entirely.

So what you are saying is that in reality by a client choosing to purchase a final expense life insurance policy and not a preneed policy that it will end up costing the client 5% of the funeral fee (or insurance face amount) in order to have the policy assigned to the funeral home if in fact the family needs "that" policy to pay for the funeral?

But, LH is one of the companies that the will pay the claim (as long as out of the contestability period? As will 5 Star 50%?

Thanks Newby, you have taught me a lot.
 
Equitable overnights a "percentage" of the death benefit within 48 hours of being notified of the death. I don't know the details but I would assume this would only be on policies that are not contestable.
 
RonRoberts said:
So what you are saying is that in reality by a client choosing to purchase a final expense life insurance policy and not a preneed policy that it will end up costing the client 5% of the funeral fee (or insurance face amount) in order to have the policy assigned to the funeral home if in fact the family needs "that" policy to pay for the funeral?

But, LH is one of the companies that the will pay the claim (as long as out of the contestability period? As will 5 Star 50%?

Thanks Newby, you have taught me a lot.

Yes. ForeThought, Lincoln Heritage and a few others do not have a fee for rapid settlement because that's how they already do it. I assume that LH will continue to do so even though they sold all their Preneed business off to NGL last year and dropped out of that market.
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rousemark said:
Equitable overnights a "percentage" of the death benefit within 48 hours of being notified of the death. I don't know the details but I would assume this would only be on policies that are not contestable.

It has to be on non-CONTESTIBLE. But the question is...do they require a certified death certificate?
 
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Yes. ForeThought, Lincoln Heritage and a few others do not have a fee for rapid settlement because that's how they already do it. I assume that LH will continue to do so even though they sold all their Preneed business off to NGL last year and dropped out of that market.
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It has to be on non-CONTESTIBLE. But the question is...do they require a certified death certificate?

Not for the overnight advance.. just notification from the funeral director. I am going to see if I can more details.
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Just got off the phone with EL&C.. They will advance by overnight mail 50% of the face amount within 48 hours of receiving notice of the death from the funeral director. Policy does have to be non contestable as we thought. Considering they simplify issue up to $100K, this can be a considerable amount paid very quickly.
 
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Yes. ForeThought, Lincoln Heritage and a few others do not have a fee for rapid settlement because that's how they already do it. I assume that LH will continue to do so even though they sold all their Preneed business off to NGL last year and dropped out of that market.
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It has to be on non-CONTESTIBLE. But the question is...do they require a certified death certificate?


Newby, in your experience, if a client has a policy with a company that pays within 48 hour of Funeral Director notification. Do the funeral homes still charge the family the 5%? If so, Why?

Thanks.
 
WinoBlues said:
Newby, in your experience, if a client has a policy with a company that pays within 48 hour of Funeral Director notification. Do the funeral homes still charge the family the 5%? If so, Why?

Thanks.

No. There is no need to.

Funeral directors don't charge it ever. The funeral advancing companies are the ones charging it. ForeThought and LH both own funeral advancing companies and there are others that probably come from the check into cash business.

Funeral homes aren't profiting off of advancing life insurance policies. They just want their money prior to service.

If an insurance company pays prior to the funeral service it's the same as cash. They won't get charged a fee. They will more likely get a discount.
 
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