How can I sell final expense life insurance?

Submitted by Mcampbell on Fri, 10/24/2008 - 15:23

Does anybody sell final expense? I just started in the FE field and wanted to know if I could make a living. Thanks!

Posted: 24 Oct 2008 03:36 Post Subject: sell final expense insurance

Don't know. What is the commission schedule? How many policies do you have to sell each week to make what you need to cover your expenses?

If I remember correctly, FE insurance usually maxes at 25K? 50K? Yearly premiums couldn't be that much could they?

Just for kicks...50 year old male, NS, good health. What would my premium be?

Posted: 24 Oct 2008 03:43 Post Subject: FE

The policies are from 3k-25k and I am selling and trying to find top agents that want to sell FE. I have been using a lead program that generates final expense leads from a dialer. For a 50 yr old male it would be $11.00 to 72.00 a month. That is 3k-25k and if you would like to sell FE please let me know I get you on a top contract. They pay 9 month advance and the commission would be $900 on a 50 yr old male.

Posted: 24 Oct 2008 03:47 Post Subject:

Do I assume it is 72 a month fro the 25k policy?

Posted: 24 Oct 2008 03:50 Post Subject: FE

Yes it is 72 a month for 25k. One good thing about the product is- it is 100% final expense telesales, so the clients can sign up in 15 minutes on the phone. You also get a 30 day free look period.

Posted: 24 Oct 2008 03:55 Post Subject:

Hmm...I can get someone a 100K VUL for about $85.00 a month. Granted, it takes more than 15 minutes and there is the med test but still...

Posted: 24 Oct 2008 03:59 Post Subject: FE

I know that is why I wouldn't stick just to FE because the premiums aren't as much as a 100k policy. But I can make more sales because no driving and don't have to worry about no shows. There are positives and negatives. There isn't a med test involved they just have to anwser 4 questions.

Posted: 24 Oct 2008 11:26 Post Subject:

What the heck is an FE policy? (asked the stupid adjuster)

Posted: 25 Oct 2008 06:17 Post Subject:

What the heck is an FE policy? (asked the stupid adjuster)



Well, I think its another name of the popular Funeral Insurance policy, suitable for the senior citizens. The final expense policy would help the seniors to build asset that may meet the final expenses. And when the funeral expenses may range between $5 and $1,000, it's a worthy purchase for many.

Posted: 25 Oct 2008 07:25 Post Subject:

The Final Expense Life policy may have a steady premium and may also accumulate cash value that the policy holder can leave behind for the family to meet other expenses, like-taxes and debts.

The Final Expense Life policy is different from the Burial Protection Insurance which typically covers only the burial expenses. Moreover, the final expense insurance doesn't need medical underwriting, i.e. the applicant can avail the benefits against paying the premium without undergoing the medial check-ups which are otherwise required for a life insurance policy.

Posted: 25 Oct 2008 11:00 Post Subject:

Wow learn something new everyday. Never heard of this type of policy ever. I am sure someone will disagree with me but when it comes to the Burial insurance why now just go to the funeral home you plan on using and pre set up for your death. Around here you can do that. Even buy your plot and stone.

Posted: 25 Oct 2008 03:32 Post Subject:

Not to be a buzzkill Mc but...

If you are in good health, don't spend $72.00 per month for a 25K policy.

Pay $85.00 per month for a 100K policy.

Posted: 25 Oct 2008 07:34 Post Subject:

Yes,

I've been in the FE market exclusively for about 6 years. It is a very good and easy niche market. As far as income, I work part time about 15 hours a week and earn a little less than 40,000 per year. As a first year agent, I would
1. Find a reliable lead source
2. Work no less than a 40 hour week.
3. Find other people in your area that also sell FE
4 Learn from them

I usually charge the lead cost to my as earned account. If you can find someone to do this for you, it will come in handy(No out of pocket expenses).

FE is a very fun market to work.

Good LUck

Scott

Posted: 25 Oct 2008 07:43 Post Subject:

A FE (Final Expense) policy is just that, A small policy which enlarges the customers estate. This policy can be used for Burial, Cemetary, Medical Deductables, or just about anything.

Also mentioned here are pre-need plans. These have a contract with a funeral home. These are also life insurance policies however most have some inflation protection built in (from 3% to 5% per year). The safest thing about these policies is that they are contracted with the funeral home to pay for the Funeral (pre-need). They also cost more than final expense policies.

As a general rule more poor demographics purchase Final Expense and more wealthy ones purchase pre need.

HOpe This Helps

Scott

Posted: 25 Oct 2008 09:16 Post Subject:

If you're not careful...you also pay taxes on the pre arrangement plans with the funeral home...Grandma, and my mom and step dad found this out the hard way!

Posted: 26 Oct 2008 02:16 Post Subject:

OHHH I never knew that. That is kind of bull crap.. I mean thats stupid to tax someone for this kind of thing. A person tries to look out for their loved ones in case something would happen to them and not be a burden and then they tax ....RIDICULOUS!!!!!!

Posted: 27 Oct 2008 09:21 Post Subject:

That is kind of bull crap..

you ain't a kiddin' it is and what my grandma said, only she's never say 'bull' or 'crap' :wink:

Posted: 27 Oct 2008 02:02 Post Subject: FE

Nice points from everybody but one thing FE is a great product for a person who only wants 3k-10k for there funeral. A 25k policy is more for there family and then I would look into a 100k policy. But you have to remember you don't have a medial UW with FE. You just have to answer 4 questions and with the policy I have everything is done over the phone. I had a coworker who husband just pasted and she now has to pay 3k for no bells and whistles out of her own pocket. There are upsides to FE and one being its cheap and over the phone. I am also looking for agents that might be interested in selling a FE product. Let me know if you want more info.

Posted: 27 Oct 2008 02:25 Post Subject:

you ought to try and get some funeral homes to push this one for you.

Posted: 27 Oct 2008 02:40 Post Subject:

Funeral Homes dont sell FE, They sell pre-need, a very different product.


Scott

Posted: 27 Oct 2008 02:43 Post Subject: FE

Thanks Scott I wasn't aware of that.

Posted: 27 Oct 2008 02:54 Post Subject:

Funeral Homes dont sell FE, They sell pre-need, a very different product

I know that Scott, but they could also sell this....two options are always better than one ya' know.

Posted: 27 Oct 2008 02:56 Post Subject: FE

What type of insurance do you guys sell if you don't mind me asking. I am new to the game of insurance.

Posted: 27 Oct 2008 02:59 Post Subject:

Mcampbell, Welcome to the community by the way....I'm a P&C adjuster....don't sell squat. :wink:

Posted: 27 Oct 2008 03:01 Post Subject: FE

Thanks Lori and is it true you can earn money on the site.

Posted: 27 Oct 2008 03:06 Post Subject:

yep...looks like you have $6.48 thus far...I've cashed out at least 500 or so...saving up this time till closer to Christmas :wink:

Posted: 27 Oct 2008 03:08 Post Subject:

Mcampbell,
My main focus is on Final Expense policies. I do some pre-need but my main marketing focus is on FE.

Scptt

Posted: 27 Oct 2008 03:14 Post Subject: FE

Lori,
You actually cashed out and they sent you a check or pay pal.

Posted: 27 Oct 2008 03:15 Post Subject: FE

Scott,
Have you ever sold Baltimore Life. I am selling BL and it is 100% over the phone. Also pays pretty good for no driving.

Posted: 27 Oct 2008 03:17 Post Subject:

They prefer (may be manditory now) pay pal...I've cashed out I don't know maybe four or five times...yes they actually paid me :wink:

Posted: 28 Oct 2008 12:27 Post Subject:

Mcampbell,
No I havent sold Baltimore Life, They seem like a quite good company. I've taken a good look at Telephone sales, I just dont seem to like them. Seems to me you have to just love the word "NO" to try telesales for FE.

Maybe Im wrong.

Scott

Posted: 28 Oct 2008 06:01 Post Subject: FE

Good point, its a easy sale when you get clients that are willing to listen. They say NO some but not as much as I thought.

Posted: 29 Oct 2008 06:24 Post Subject:

Lori is correct. While the death benefit is not taxable, the products (plot, casket, flowers, etc.) are. A large funeral could run up a healthy tax bill.

Posted: 29 Oct 2008 06:33 Post Subject:

FE will give you "products" for a funeral? I thought it was just cash.

Posted: 29 Oct 2008 06:45 Post Subject:

Hello everyone,
In the past 15 years, I've investigated several companies that sold FE, Pre-need, and other types of burial insurance. In fact, I even got to close down a couple agencies in the San Jose, CA area.

Here's the most common "test" of an FE or similar type policy.

A couple pages ago, we were discussing a $25K policy on a 50 year-old for $75 per month. For sake of argument, let's assume that neither the death benefit or the premium will change in the future, the insured is healthy, and expects to live to his life expectancy (as determined by the the most recent COS table)

$75 per month is $900 per year and if he lives to age 84 he will have spent $30,600 on a $25,000 death benefit. Where, I ask, is the value?

"Well, you might reply, what if he dies at age 75?" Then, I would say, he needs a type of life insurance and not FE or pre-need. Let's sell these policies to people who already have one leg in the ground and are busy with their estate planning or disbursing assets.

Don't outlive your FE or pre-need policy.

Posted: 29 Oct 2008 06:48 Post Subject:

FE will give you tax free money to buy products. You must pay the taxes on those products.

Posted: 29 Oct 2008 06:57 Post Subject:

FE is for a funeral take your life policies for the family to spend and FE for a funeral. Nobody knows when they will die just like I don't know when or if i will wreck my car. Why have car insurance or a selt belt. Everybody has more then one policy on themselves. I had a co worker whos husband just passed away and she has to pay 3k out of her own pocket to cremate him. He was 56 and would of only paid around 4k for a 25k policy. Now she doesn't have the money for a nice funeral he deserves.

Posted: 29 Oct 2008 07:02 Post Subject:

I'm healthy. I pay $85 a month for a 100K Life Insurance policy. I die. My beneficiary takes the proceeds that he received tax free and pays for my funeral (and associated taxes).

Sorry...but I'm still thinking the having 75K left over 75K is a better option.

Posted: 29 Oct 2008 07:08 Post Subject:

Not everybody can qualify for a 100k policy. Also it is for people that want a smaller policy not a large 100k policy. Its for a funeral of 5-10k which you would only pay 30 bucks a month. Not everubody can pay 85 a month for 30 years. I understand the 100k policies I use to sell them but you have to realize people just want to make sure they can pay for there funeral.

Posted: 29 Oct 2008 07:39 Post Subject:

Using Ins' post (and my earlier post) as reference, my 75K left over is valid.

Why would a perfectly healthy individual want to pay $75.00 a month for 25K when he/she can pay just a few dollar more for four times the benefit?

Yes, if someone is of ill health and can't qualify for a "normal" policy, then FE might be just the thing.

But that wasn't our scenario.

Posted: 29 Oct 2008 08:08 Post Subject:

FE is for a funeral take your life policies for the family to spend and FE for a funeral.



Why couldn't the family spend the life insurance proceeds on a funeral?

Everybody has more then one policy on themselves.



I don't.

Be advised that Piggybacking or multiple-policy sales are often not a benefit to the insured. In fact, in some cases, they can be downright harmful - and illegal.

Posted: 29 Oct 2008 08:51 Post Subject:

What I am trying to say is that a FE policy is for people only wanting a 3k-15k policy and maybe 25k depending on there health. Its not for everybody and I understand getting a 100k policy but what if you want 3k. Don't want to upset Sherlock Holmes over here.

Posted: 29 Oct 2008 09:02 Post Subject:

Mac, you obviously have missed the point that Sherlock agrees with you 100%.

What I am trying to say is that a FE policy is for people only wanting a 3k-15k policy and maybe 25k depending on there health.



Yes, an FE policy may be just what some people need. I just wanted to bring the "value" aspect into the equation. Be careful that you don't encourage people to spend $5000 for a $3000 benefit - that's just wrong.

Posted: 29 Oct 2008 09:06 Post Subject:

100k polices are most of the time term which will expire in 30 years so then what.

Posted: 29 Oct 2008 09:20 Post Subject:

What if you had a UL, EIUL, UL/Term blend, WL, or WL/Term blend?
Actually, according to the NAIC, 39.6% of all policies written in America since 1983 are some type of UL. Although term insurance certainly has a firm foothold in the American marketplace, I don't think the phrase "most of the time" applies here.

Mac, I, and most of the others on this site, are not - honest to God - here to challenge you, your products, sales methods, or argue about anything. We are here to provide a service and hopefully give those with less experience a better understanding of the insurance world. If you had come to one of my seminars, I doubt I would have had the opportunity to speak with you on this level. I'm glad I did.

I've been in the business a long time and I still learn things from others on this site. Always try to keep your eyes and mind open to ever aspect of this business and don't get bogged down with what others say, do, or think.

I can tell that you'll be a great agent because you seem to care.

Posted: 29 Oct 2008 09:35 Post Subject:

Im afraid that I dont fully understand the conversation here. Ok yes it is true some people with FE policys end up paying more for their policys than the death benefit. This still doesn't mean that they have gotten no value from the policy. They were also covered fully from day one what if they paid in only one premium and then died, and the beneficary still got the face amount of the policy? would you then have the discussion that the contract isn't fair to the issueing company? No you would not. Also, as far as term policys go, Northwestern Mutual said that less than 1% of their term policys ever pay a death benefit. So Less than 1 out of every 100 every receive any benefit what so ever from their policys, are these term policys bad for the consumers also? Maybe a savings account would be better, then if you save 45.00 for 12 months and die your family could have all of $540.00 to bury you right?

Ok maybe Im being too foward here, however the Industry is a valueable asset. Yes some people benefit more than others, Sometimes the company makes lots of money from a client, sometimes yes sometimes, they lose. Usually when the company looses, they do BIG TIME.

Thanks

Scott

Posted: 29 Oct 2008 09:39 Post Subject:

The 100K policy I'm referring to is a VUL.

Yes..there could be a need for the FE. Never said there wasn't. The scenario we were discussing was a healthy person - someone who should have no problem qualifying for a preferred rate on a VUL.

Posted: 29 Oct 2008 09:41 Post Subject: insurance

Never heard of a FE policy. Can someone explain this to me?

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