Is There a FE Agent "mentality?"

[GreenSky]

I realize that generally FE is sold to people that have not planned well and/or have little money. Many are in poor health and there may be limited choices.

However, it seems that FE agents default to "typical" FE policies for clients who might be better off buying fully underwritten WL or even GUL.

While some agents that sell FE are more life insurance agents than just FE expense agents, why do so many that sell FE seem to only sell FE products?

In another thread a FE agent say he wouldn't sell fully underwritten because "clients won't go through an exam." Yeah, some might now want to but if the choice is spending $70/mo for a $10K FE product or $50/mo for a $25K fully underwritten would they say the same thing. (And we had a FE agent question what 20 yr term to sell to a young person which really surprised me).

It seems that agents are excited to save a client $7 a month. Why not at least show the healthy prospects the option of saving quite a bit more?

I don't sell FE so perhaps I'm just way off base here. Please enlighten me.

Rick

 

[moonlightandmargaritas]

In 23 plus years, I've very little success selling people what they "need". OTOH, I've had tons of success selling people what they want!

 

[WinoBlues]

Before this thread goes off the rails and goes to fight club.

I call healthy std ht and wt, cholesterol and HBP controlled by meds.

 

[HoosierLife]

Honestly, I think it's because most FE agents aren't trained in fully UW products. I know I'm not. Every time this topic comes up, I think I need to add something other than RNAs fully UW to my bag.

With FE it's easy. Can you answer no to all these questions? Do you weigh less than X lbs? Do you not take X meds? If so, they're approved. And we are on to the next appt.

Many times we are driving fairly lengthy distances to get to our area and are only there for a few weeks before moving on to another county which may be in a different direction entirely. Who knows how long the fully UW stuff will take to get approved. And without the product knowledge of who will/will not fit, we chance losing the sale entirely.

Is it right? Maybe, maybe not. As an FE agent we are selling simplicity.

With that being said, I think we could do better for ourselves and some of our clients by offering fully UW products. It would be a rare few prospects that I would ever offer a GUL too though, but it would be nice to have something like Sagicors GUL.

 

[rousemark]

Rick.. To answer your question about the FE mentality..There cetainly is when it comes t agents.. It is called "crazy"

FE agents tend to get into the busines because of the simplicity of the product and underwritimg. I quit offering AG/AGLA because they require a spit stick on evry applicant that doesn't require a physical..That plus their 32 page app....

BTW, agents are not all that excited over saving a client $7.. They are excited because that $7 makes the sale and the commission possible.

 

[moonlightandmargaritas]

FE agents tend to get into the busines because of the simplicity of the product and underwritimg.

Like all life insurance agents, every person a final expense guy/gal works with ends up better off because of it. Is the solution always ideal? Of course not. Nonetheless, it solves a problem!

 

[Stephen]

I realize that generally FE is sold to people that have not planned well and/or have little money. Many are in poor health and there may be limited choices.

However, it seems that FE agents default to "typical" FE policies for clients who might be better off buying fully underwritten WL or even GUL.

While some agents that sell FE are more life insurance agents than just FE expense agents, why do so many that sell FE seem to only sell FE products?

In another thread a FE agent say he wouldn't sell fully underwritten because "clients won't go through an exam." Yeah, some might now want to but if the choice is spending $70/mo for a $10K FE product or $50/mo for a $25K fully underwritten would they say the same thing. (And we had a FE agent question what 20 yr term to sell to a young person which really surprised me).

It seems that agents are excited to save a client $7 a month. Why not at least show the healthy prospects the option of saving quite a bit more?

I don't sell FE so perhaps I'm just way off base here. Please enlighten me.

Rick

Final Expense is a broad term. It is used to describe a product, clients, and agents.

The typical FE client buys on emotion, not logic. They send in a card because they have a particular emotion that compels them to do so. If they still feel the same way, or if you can revive that emotion over the phone, they will agree to an appointment.

During a meeting you build that emotion to a crescendo and take an application and a voided check. To reduce the negative emotion of being separated from their money, you make sure that the premiums are drafted on the third.

Even if it is a healthy person that could be better served by a fully UW policy, that brief moment of clarity that their agent brought to them will not survive the underwriting process. The 3rd will come and go, the electric bill will come in, and that loving daughter that they didn't want to burden, borrowed the Buick to go to work the morning shift at Denny's and didn't bring it until midnight.

 

[TwiLight]

As a life agent, I lean more towards the income/responsible vs those that are not.

A F/U policy is more likely to stay on the books and have less of a chance of NSF.

The FE/SIWL policy is the opposite with Lower income and less responsible.

Also most FE agents are untrained in F/U and don't want to be. They are also less likely to build Clientele. Meaning that the Agent will rarely sell more than one product in the house. The more product the more persistent the Life Policy. Most FE agents are one and done sale reps and never see the client again.

 

[GreenSky]

Thanks for the responses. A quickly solved problem is certainly better than not solving the problem.

It's obvious that a $10K FE product may not be the best solution, but it certainly is better than no solution.

This thread will not head to the fight club. I'm really curious about the "one and done" type of FE sale rather than building a relationship as we might when selling Med Supp.

I'm so used to selling a med sup in CA and immediately let them know I will keep my eye on rising rates to make sure they continue to have as low as price as possible. And it's the same with the MA plans I sell. I review them annually because I don't, someone else will.

Wino sells life insurance and builds relationships that go far beyond the original prospects. FE agents (at least my impression) is that they quickly solve a problem and move on to the next client.

Rick

 

[Stephen]

Honestly, I think it's because most FE agents aren't trained in fully UW products. I know I'm not. Every time this topic comes up, I think I need to add something other than RNAs fully UW to my bag.

With FE it's easy. Can you answer no to all these questions? Do you weigh less than X lbs? Do you not take X meds? If so, they're approved. And we are on to the next appt.

Many times we are driving fairly lengthy distances to get to our area and are only there for a few weeks before moving on to another county which may be in a different direction entirely. Who knows how long the fully UW stuff will take to get approved. And without the product knowledge of who will/will not fit, we chance losing the sale entirely.

Is it right? Maybe, maybe not. As an FE agent we are selling simplicity.

With that being said, I think we could do better for ourselves and some of our clients by offering fully UW products. It would be a rare few prospects that I would ever offer a GUL too though, but it would be nice to have something like Sagicors GUL.

Excellent response. You are working as a specialist and marketing to your specialty.