Which Has Higher Commission, FE or Preneed?

[grom0007]

All things being equal, which product makes more for the agent?

 

[rousemark]

The one you sell.

 

[jdeasy]

All things being equal, which product makes more for the agent?

There is no way to answer that since they are anything but equal.

 

[FinancialSolutions]

I've been a licensed funeral director and embalmer in the state of Ohio for 20 years and have done preneed for probably 6 of those years. I will tell you it really depends. No clear cut answer, depends on the case.

 

[grom0007]

for the people that are saying it depends or they are not the same, can you give me some examples?

What is street for final expense? 120%?

So lets say a $7000 funeral for a 65, 75, and 85 year old, how would the take home compare?

 

[FinancialSolutions]

Will you be a 3rd party marketer for the funeral home where you're mailing DM leads or are they mailing them? Do you have to write their walk-in business? Do you follow-up with their at-need families? Do you get to sell monuments? All of this will factor in.

 

[Newby]

for the people that are saying it depends or they are not the same, can you give me some examples? What is street for final expense? 120%? So lets say a $7000 funeral for a 65, 75, and 85 year old, how would the take home compare?

That 85 year old will pay much higher commission with FE.

PreNeed pays high on ages 51-76. By age 85 you are doing charity work.

Overall 1st year commission with PreNeed is going to be higher than FE. If both agents are on high contracts.

But you can start on day one at a high contract with FE.

You will need to write at least $1,000,000 of PreNeed before you will ever be offered a high contract.

Plus FE has renewals. PreNeed does not.

Call me if you want to discuss it in detail.

 

[John Galt]

I sell Pre Need funeral & cremation plans full time and Newby is SPOT ON with those numbers. Also, it's been my experience that when I sit down with people in their late 70's or older, if they haven't made funeral plans by that age. . . they aren't gonna do it now. Can't explain it but when their that old they just leave it on their family to take care of it on an "At Need" basis.

Deadbeats galore in pre need too, "who woulda thunk it?" - A newby original

 

[TampaHound]

Why not sell both? I'm sure someone has a need for FE. I'm sure someone has a need for pre-need. Each product is different enough and each has it's strengths and weakness.

However I think the market for FE will beat the pants of the market for pre-need any day of the week.

 

[myinsurebiz]

Can an Insurance Agent and a Funeral Home employee work together on referrals and it be ethical and legal for each other?