There are numerous reasons why an agent may wish to consider becoming licensed to sell final expense insurance. Usually final expense insurance is designed to cover the basic cost associated with burial expenses, final household and medical bills, probate fees, and any funeral expenses after an individual passes away. These costs can be a significant problem for family members. Grieving family members do not need one more thing to worry about, and that is why burial insurance or final expense insurance makes so much sense as a product.
Why Final Expense Insurance Appeals to Consumers
It is important to realize that many funeral expenses can add up to more than $10,000 and can be a burden for your loved ones. Final expense insurance is often the right solution for clients who want coverage to help with these immediate needs after they pass away without all of the frustration and hassles associated with the comprehensive underwriting process. Final expense insurance policies are much easier to understand and they tend to be issued quickly, too.
Many older individuals easily connect with final expense insurance because it addresses their concerns about passing away and leaving behind a burden for their loved ones. Since the policies are guaranteed and easy to understand, it’s much simpler to get a potential customer on board. Most people in the market for final expense insurance can easily see the benefit.
Basics of Final Expense Insurance
From an agent's perspective, you should be aware that final expense insurance is a simplified issued product that does not require any official medical exam. This means that the majority of your clients can qualify easily for final expense insurance, although applicants are typically only able to obtain policies with smaller face amounts.
One of the biggest benefits of final expense insurance from a consumer perspective is that these face amounts and the premiums are guaranteed. Some policies also allow optional riders to be added, too. Due to the fact that the insurance company is taking on more risk with a policy like this, premiums may be more expensive, but they will not change.
What Factors Impact Final Expense Insurance Coverage?
Final expense instruments have options for insuring a client's life. The older that an individual is, the higher his or her premiums will be. This is, of course, because the insurance company takes on the mortality risk of ensuring an additional person. Final expense insurance gives you more flexibility than simply prepaying for your funeral and burial expenses. There are many different questions associated with the prepayment plan, including:
- What happens to your investment if the funeral parlor goes out of business?
- If you move to a different location, will you move the money that you can refund if your funeral plans change?
The bottom line is that a final expense insurance policy can help your clients answer the critical questions of how to deal with these costly expenses and to minimize the burden that family members deal with after a loved one passes away.
Which Clients Are the Best Fit for Final Expense Insurance?
From an agent's perspective, final expense insurance may be the appropriate solution for many of your clients depending on their individual needs. For those applicants who have struggled to obtain affordable insurance through other carriers or have been denied altogether, final expense insurance is an excellent option to consider.
As an agent, it’s important to partner with an insurance agency with experience in the final expense field. T.R. King has access to some of the best final expense insurance carriers and we work hard to make sure that the contracting process is as seamless as possible. Contact our offices today to get set up to sell final expense insurance. We’re waiting to help you at 1-540-400-6275 or 1-800-590-7207.