- 2,152
Not a bad market, what are you doing now?
Final Expense Insurance Market
- Thread starter joedavis2007
- Start date
- 135
joedavis2007 said:
One would presume the person recommending it as your path would have some of these answers...
- 16,880
If you are considering pre-need insurance...I'm very experienced with that. Top carriers are Forethought, Homesteaders, and FDLIC (Funeral Directors Life Insurance Company.)
You have to be contracted with a funeral home to sell it. It is MORE similar to an annuity than what most people think of as life insurance although it is life insurance. The products are usually paid up within 3-years although they can choose to pay as long as 10-years. The death benefits grow by about 4% eash year. Most insurance companies will allow the client to pay off on a same as cash basis to 2-years (some will go 3-years)
Most funeral homes will guarantee the policies. If you contract with a funeral home that won't guarantee it, you would have a hard time selling it.
Commissions on ages 51-75 are much better than most final expense policies because you are selling a much higher premium contract. The down side is: some people can't afford to pay $8,000 to $12,000 in premium over 3-years or so. Those are the people that you can sell the level-benefit pay for life final expense insurance with no guarantees.
The main problem I have seem with traditional life agents who get into funeral planning is, they keep thinking that people are looking for the lowest premuims (the pay for life, never out of debt mentality.) People who are preplanning are looking for a plan that they can pay off the quickest and have the lowest TOTAL of payments. Most pay their contract off early. The death benefit doesn't even matter to them in most cases because they do not plan to die before the contract is paid in full.
If you sign on with a good funeral home, you can make a very good living with it. E-mail me if you have any other questions.
You have to be contracted with a funeral home to sell it. It is MORE similar to an annuity than what most people think of as life insurance although it is life insurance. The products are usually paid up within 3-years although they can choose to pay as long as 10-years. The death benefits grow by about 4% eash year. Most insurance companies will allow the client to pay off on a same as cash basis to 2-years (some will go 3-years)
Most funeral homes will guarantee the policies. If you contract with a funeral home that won't guarantee it, you would have a hard time selling it.
Commissions on ages 51-75 are much better than most final expense policies because you are selling a much higher premium contract. The down side is: some people can't afford to pay $8,000 to $12,000 in premium over 3-years or so. Those are the people that you can sell the level-benefit pay for life final expense insurance with no guarantees.
The main problem I have seem with traditional life agents who get into funeral planning is, they keep thinking that people are looking for the lowest premuims (the pay for life, never out of debt mentality.) People who are preplanning are looking for a plan that they can pay off the quickest and have the lowest TOTAL of payments. Most pay their contract off early. The death benefit doesn't even matter to them in most cases because they do not plan to die before the contract is paid in full.
If you sign on with a good funeral home, you can make a very good living with it. E-mail me if you have any other questions.
Thanks for the great info I would like to talk to you about Homesteaders.
- 16,880
That's a very old post of mine. Probably one of my first.
The best way to contract with Homesteaders or any preneed insurance company is to work with a funeral home. Some states won't allow it unless you are a funeral director.
Read through my other posts here and you will have a good understanding how it works.
The best way to contract with Homesteaders or any preneed insurance company is to work with a funeral home. Some states won't allow it unless you are a funeral director.
Read through my other posts here and you will have a good understanding how it works.
- 184
Yea, the guy has brought up alot of old post and all 20 of his post were made today.
- 2,090
joedavis, do as much research as you can on "debit life" or "industrial life" or "home service life". And I'm serious about that.
The reason is this: the historical origins of final expense are rooted in these markets. I am an old school debit agent. There are a few companies who still do it out there, it is basically a cash premium policy where the premiums are collected, for lower income folks. A lot of times it is for young mothers. The final expense market is now thought to be mainly for seniors, but the concept is the same.
Basically, the concept for seniors is that they do not need high face amounts , just a final expense policy. For young mothers who are less than wealthy, they also do not need nor can they afford a big policy. Both classes of folks, be they senior or young single mothers, may be reluctant to do a bank draft. These two markets are related, for a lot of seniors are less than wealthy right now, or on a limited income schedule.
Lately, final expense has evolved into selling to seniors with checking accounts who may already have a med supp with you, who may have some sort of means to support themselves, and may not mind bank draft. However, if you research the history, some seniors may have been used to paying direct monthly or quarterly premiums, at least if you were to go back to the 1960's or so. { even as late as the 1980's}
If you go back in time far enough, people paid for small life policies on a weekly basis with cash. So, certain traditions are being lost as we evolve this thing. But understanding the history of this thing helps you to understand why small face amount policies are still around today, and why somebody may want one, and why they may wish to pay for it by some means other than bank draft.
The reason is this: the historical origins of final expense are rooted in these markets. I am an old school debit agent. There are a few companies who still do it out there, it is basically a cash premium policy where the premiums are collected, for lower income folks. A lot of times it is for young mothers. The final expense market is now thought to be mainly for seniors, but the concept is the same.
Basically, the concept for seniors is that they do not need high face amounts , just a final expense policy. For young mothers who are less than wealthy, they also do not need nor can they afford a big policy. Both classes of folks, be they senior or young single mothers, may be reluctant to do a bank draft. These two markets are related, for a lot of seniors are less than wealthy right now, or on a limited income schedule.
Lately, final expense has evolved into selling to seniors with checking accounts who may already have a med supp with you, who may have some sort of means to support themselves, and may not mind bank draft. However, if you research the history, some seniors may have been used to paying direct monthly or quarterly premiums, at least if you were to go back to the 1960's or so. { even as late as the 1980's}
If you go back in time far enough, people paid for small life policies on a weekly basis with cash. So, certain traditions are being lost as we evolve this thing. But understanding the history of this thing helps you to understand why small face amount policies are still around today, and why somebody may want one, and why they may wish to pay for it by some means other than bank draft.
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