If you are looking for a product that is easy to promote, can supplement your revenue, and give your clients some peace of mind, then selling final expense life insurance for low-premiums and simplified underwriting should be right up your alley.
What is Final Expense Insurance?
Before we go into how you can profit from selling final expense insurance, you must first know what it is and how it can benefit your clients.
Final expense insurance, also known as burial insurance, is a whole life insurance that is designed to cover funeral costs and remaining medical bills in the event of death.
It is popular with senior citizens because of its more affordable price, as well as its emphasis on covering funeral costs.
Final expense life insurance is strongly recommended for individuals who may otherwise not qualify for a traditional life insurance policy. This may be because the premiums associated with the usual life insurance policy may be too steep for them due to minimum face amounts, or they might have been outright denied by other insurance companies.
These individuals should consider final expense life insurance, as it allows them to still have some peace of mind regarding basic burial expenses, in the event that something happens to them.
Like other types of life insurance, the owner of a final expense life insurance policy can name beneficiaries who will carry out the payment of the policy owner’s burial costs. Typically, final expense life insurance is offered at a more affordable premium due to lower face amounts.
The Final Expense Life Insurance Market
Being an insurance agent means constantly thinking about the best way to evaluate your services and how you can provide them to your clients more effectively. If you have been thinking about getting involved with final expense insurance sales but have previously held back, there is no better time than now to step into it.
From now until 2030, 10,000 Baby Boomers will be celebrating their 65th birthday daily. Additionally, thousands of people are retiring every day. A lot of them have most likely not taken any steps to prepare for the future and are just now planning how they will deal with end-of-life expenses. They may be realizing the benefits of having at least a basic life insurance policy. With the market growing like this, you would be missing out if you don’t start selling final expense insurance now.
There is a large market for final expense life insurance in the United States. The market consists of a variety of people, from the individuals who want to protect their life savings to those who are unable to afford a funeral. Most of these people are low to middle-income retirees. Though the market is diverse, their common denominator is that they do not want to leave a financial burden for their family members in the event of their passing.
As a life insurance agent, you may want to consider transitioning to selling final expense so that you can tap into this market. Bear in mind, though, that this market is slightly different from the market that you may be used to.
Potential clients for final expense life insurance may have already gone through the life insurance application process and may be convinced that the process of getting final expense is just as long, frustrating, and demoralizing.
Pro Tip: As an agent, it is your job to guide these clients and help them understand the particulars of final expense life insurance, as well as how you can be of service to them.
Is Selling Final Expense Life Insurance a Good Career Path?
Owing to its bustling market base, final expense insurance presents an excellent opportunity for insurance agents to sell a much-needed product.
The market clamors for final expense insurance for three main reasons:
- They’ve never had a large enough income to attract financial planners or other life insurance agents.
- They’re retired and have likely lost the benefits that they once had when they were employed.
- More often than not, they have already buried a loved one. As such, they understand the need for additional funds to cover funeral costs and medical bills.
Aside from tapping into a large market, selling final expense life insurance gives you freedom, allowing you to have full control over your schedule. Your own efforts determine how much money you make. When you sell final expense, you can run your business to suit your lifestyle.
You can generate leads and make sales very easily because of the many different communication systems in place. Skype and phone conversations and web conferencing systems are becoming increasingly commonplace – through these channels, final expense life insurance agents can connect with their clients and tell them about the policies that are ideal for their situation.
Pro Tip: It is strongly recommended that you consult with a knowledgeable and reliable life insurance agency to be brought up to speed on how to sell final expense life insurance.
Training for Selling Final Expense Life Insurance
Getting started with selling final expense life insurance doesn’t have to be difficult. You just have to be dedicated to the market and your product. You should be able to identify what policy is the right fit for a client so that you can give them the peace of mind that comes from knowing that their family won’t be facing any undue burdens should they suddenly pass away.
You can do this with the right training. Good training, like soft skills and interpersonal skills, is essential for success in almost all sales-related fields of work – including final expense life insurance sales.
Many agents ignore or fast forward their training because they think that selling final expense life insurance will be simple since it is such a small policy that is basically used for funeral expenses. This kind of thinking is not completely accurate.
While the premiums for the typical final expense policy are less expensive than other types of policies due to smaller face amounts, it is still a significant amount of money for many of your clients. Getting a final expense policy will still be an important decision for them. This is why it is vital that you accurately and appropriately identify your target market.
The right training program can help you determine which final expense life insurance policy can satisfy the particular needs of your clients at that time.
Some core components you need to learn during your training are:
- 1How to Overcome Rejection.
- 2How to Set Appointments.
- 3How to Give a Great Sales Presentation.
- 4How to Set Appointments Over the Phone.
- 5How to Structure Your Presentation So That You Prevent Objections.
- 6How to Close a Sale.
- 7How to Properly Work Your Leads.
An insurance agency can help you with this training. Don’t hesitate to connect with an insurance agency that has handled final expense insurance before. This will allow you to create a seamless system for capturing leads and bringing them to application status. Final expense insurance policies are typically delivered much more quickly than other types of insurance, so it is important to partner with an agency that has a connection to quality carriers.
The Basics of Final Expense Leads
As experienced insurance agents will say, you are only as good as your leads. You need to have a consistent source to keep the pipeline full. If you want to be a successful final expense life insurance agent, you need to know your leads.
There are four common ways to get final expense life insurance leads:
Online Final Expense Leads.
Leads made over the Internet. Don’t make the mistake of assuming that your senior clientele isn’t online; they are. In fact, some of them are buying their final expense life insurance policies online.
Direct Mail Final Expense Leads.
Considered the best final expense lead, direct mail leads are generated through a letter with a postage-paid reply card. The potential client must physically fill out the card and return it to the sender via mail.
Telemarketed Final Expense Leads.
These leads are generated through cold calling your target demographic.
Door Knocking Final Expense Leads.
With this kind of lead, you physically show up at your potential client’s home to offer final expense life insurance.
What is the best method? The simple answer is all of them. When you have multiple ways of generating leads, you are more likely to reach clients and drive sales.
Best Practices for Selling Final Expense Insurance
If you add final expense insurance to your product line-up, you can complement other policies, such as life insurance, annuities, and Medicare plans. If you’re looking into final expense insurance selling, consider these practices and fit them into your sales process.
Represent Multiple Final Expense Carriers
Underwriting standards can vary among different final expense insurance carriers. While one company may deny an applicant based on their health, another company may be more accommodating. If you represent many insurance carriers, you won’t be held back by the rules and practices of just one carrier. You will be able to offer an array of coverage options to your clients at a range of prices.
Don’t Stop Looking for Final Expense Prospects
Competition is fierce among those who are selling final expense insurance. However, that shouldn’t stop you from reaching out to prospective clients. According to a survey by the Life Insurers Council (LIC) and Competiscan, 8 in 10 of the Americans aged 50 – 85 surveyed believed that planning for final expenses was important.
Furthermore, it found that, while 65% of those surveyed would likely go online to learn more about final expense life insurance, only 32% of them would buy from a carrier’s website. A majority of them (47%) would still prefer to buy from an agent or advisor.
This just proves that there is a demand for final expense life insurance. You can meet this demand by continually looking for clients, which you’re sure to find if you put in the hard work.
Educate While Selling Final Expense Insurance
Final expense life insurance is not as familiar as a product as life or auto insurance. When selling final expense, it is vital that you educate your clients so that they understand how a policy might fit into their portfolio.
Make sure that you explain the two main types of final expense insurance, which are:
- Simplified Issue – Though this policy asks some questions regarding health and medical status, it requires no formal medical exam in order to apply for coverage.
- Guaranteed Issue – With this policy, applicants aren’t asked any medical questions at all. More likely than not, anyone who applies for this will be approved. However, the premiums on these plans are usually higher than most.
You can also point out how final expense life insurance is different from other life insurance. Final expense life insurance is meant to cover funeral expenses and remaining medical bills, rather than an outstanding debt, like a mortgage.
You can also emphasize the advantages that come with final expense insurance. Some of these advantages are benefits that cannot be cut, rates that never increase, and tax-free pay-outs, among others. Essentially, you should impress upon your clients how important getting final expense insurance is for their families. With the right policy, loved ones can get the financial help that they need during a difficult, emotionally taxing time.
Sell Final Expense Life Insurance with an Insurance Field Marketing Organization (IMO/FMO)
Learning how to sell final expense life insurance doesn’t have to be difficult. You just need to dedicate the time and effort. To help you with this, you should partner up with an IMO/FMO, which will guide and support you on your journey as a final expense life insurance agent.
For an IMO/FMO that you can trust, turn to none other than TR King Insurance Marketing. In our more than two decades of experience, we have helped over 150 insurance agencies and over 2,000 agents establish themselves nationwide. With us, you get an insurance training program, trusted lead resources, and efficient customer service, among others. Start your career as a final expense life insurance agent right; start it with us.For more information on us and our services, don’t hesitate to get in touch with us today. We would love to hear from you.
Key Takeaways In This Article
- Final Expense is a good alternative to traditional life insurance
- Understand your market and when a final expense product is right for your client
- Selling final expense is lucrative and allows you to be your own boss
- Get the right training to set yourself up for success.
- Develop a sales process that works for you to capture leads and sell final expense
Over to You
We'd love to hear your thoughts in the comments below on:
- Do you sell final expense insurance? Why or Why not?
- What cross-selling opportunities have you come across where final expense is the answer?
- Do you sell final expense face to face, over the phone, or online? Why or Why not?
If you have any questions, please leave a comment below. We will carefully read each one of them. Happy Selling!